As we all know, whales are the bigger investors in the crypto market and their activities in the market affects the fluctuations of prices because when they sell some of their assets, it causes pandemonium such that it's effect can widely be noticed and when they also buys back it also helps the price to skyrocket because these are investors that their investments in cryptocurrency are worth billions of dollars. My question is this, what will happen to the crypto industry if the whales decides to sell off their assets and never buys back again? how will the Market survive since it will be Left with only lower investors?
As soon as the whales leaves the world of crypto let's take for example Bitcoin, there would be rapid price crash since lots of sell orders and limited buy orders would increase supply over demands leading to higher negative volatility, it can also trigger panic in the masses, who might think Bitcoin is crashing and follow suit to sell off their own investments too.
Exit of the whales would greatly reduce liquidity of Bitcoin since the whales are instrumental in providing high liquidity by executing buy and sell orders, their exit would greatly destabilize the market and increase volatility to terrible conditions.
Although Bitcoin may tend to survive the crash, but this would shake the crypto world as other smaller projects might suffer lower investor participation and would see most of them fade away leaving only the most resilient and well established ones one picking up their pieces with Bitcoin. The markets would survive, but it would be a very long and painful process and lots of people would witness their portfolios decline significantly.
Whales exit might trigger more government participation as they might step in tho normalize the markets if it has very high impact on different economics of different nations and we're all know that at that point, Bitcoin decentralization might be threatened.
It might also give room for more decentralization and creativity in Bitcoin since the exit of the whales would prompt investors of different capacities to jump to the rescue and buy Bitcoin while getting more creative and innovative with it's involvements to gain more adaption in the supposed new era because after the crash comes a new era free from the manipulations of the whales.