Crypto influencers play a huge role in our market. Sometimes, crypto users underestimate the power these influencers wield. Influencers carry out a lot of crypto-related activities online. Some have podcasts where they promote some crypto projects or YouTube videos where they explain concepts.
But, all crypto influencers play a huge role in the decisions we make in the market. Their analysis and suggestions often influence our view of crypto tokens, and from past experience, many people have been scammed.
However, scams are not the only reason why we watch out for crypto influencers. Many of them have much-needed insight into the market and their moves could be healthy for our portfolios.
What’s Influencer Watching?
Have you heard of influencer watching? it’s quite similar to whale watching. In whale watching, we use blockchain tools to observe the wallet movement of whales. (Crypto whales are people who hold a large number of cryptocurrencies. So, their market activity can influence price movement.)
When a crypto whale sells a large amount of a token, people believe the price of that token will tumble. So other token holders sell theirs off. But, when whales buy a large amount of specific tokens, then we believe that’s the new trend.
So, influencer watching entails monitoring the wallet activities of major influencers to make your decisions. As mentioned earlier, crypto influencers have a great deal of insight. Some are affiliated with projects. So, even if they promote scam projects, we’ll get the memo once we observe a massive sell-off.
Let’s see how powerful influencers are. Back in November, Changpeng “CZ” Zhao tweeted that Binance was going to liquidate its FTT holdings. Moments later, the whole market went crazy. Everyone wanted to liquidate because they sensed something fishy was going on.
Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.
— CZ 🔶 Binance (@cz_binance) November 6, 2022
Another example. Imagine for a moment, someone as powerful as Vitalik Buterin purchased a large number of unknown tokens or a new project. The price of that token will shoot up because everyone would want to get that token into their portfolio.
Influencers might have their reasons for selling or buying. But, most of the time, they’ve got pretty good reasons. This is not to say that you should base your buying/selling on their decisions. However, it’s best you know what’s up around you.
So why do you need to track an influencer’s wallet? You can get information on the tokens they invest in before their audience. This gives you a better entry price than their subscribers will have later on.
How to Watch Influencers
Thanks to the transparent nature of blockchain, you can find anything with the right tools. Fortunately, when it comes to watching your influencers, you don’t need to know how to code or have any serious skill.
There are four simple steps to finding these wallets.
- Find two tokens they promoted recently.
- Get a list of these tokens from chain explorers.
- Find wallets that hold all tokens from the list.
- Analyze each wallet.
Let’s explain these steps using an example shared by Rekt Fencer, founder of X DAO. So, our influencer in our example recently shilled $RELAY and $SPILLWAYS.
The next thing we do is to find these tokens on Etherscan and download CSV files with all holders.
Next, we find all the wallets that hold both of these tokens using this tool: onlinelisttools.com/find-duplicate
Afterward, remove contract addresses and addresses with a $0-100 balance from the list.
Now, you’ll get a list. Then, you analyze the wallets displayed.
The image below shows that wallet 1 holds random tokens that our influencer did not mention.
Wallet 2 does not hold any tokens mentioned by the influencer, except $RELAY and $SPILLWAYS.
Wallet 3 holds $XFT, $RIO, and $SPILLSWAY. These tokens were shilled by the influencer. This means there’s a chance this is his wallet.
Now, we find his other wallets using the analysis tool by AppBreadcrumbs or Nansen’s counterparty feature. Then we’ll compare trades there with what he tweeted on his account.
A few savvy influencers switch wallets whenever they purchase a new cryptocurrency. Sadly, this makes applying the method in this article nearly impossible. But, if you do get to find the wallets, then you’ve scored a huge point.
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