Smithii Sniper Bot for Solana Tokens and Meme Coins

Copy article link

Anti-whale mechanisms on Avalanche: Avoiding pump and dump

The concept of "whales" in the ecosystem refers to individuals or entities that hold large quantities of a specific token.

While the presence of whales can have certain advantages (some token creators seek to partner with whales to increase their marketcap), they can also pose risks to stability and fairness within a token's ecosystem.

An illustration showing how whale activity impacts the Avalanche blockchain. The chart follows a candlestick pattern, with steps outlined: 1) You launch your LP on Avalanche, 2) Whale buys, 3) Whale sells at the peak price, and 4) You suffer a pump and dump as liquidity is drained. The image includes whale icons representing large trades, and the Smithii logo at the bottom

To mitigate these risks, anti-whale mechanisms have been developed and can be configured with Smithii's anti-whale tool.

In this article we will explore the most common anti-whale mechanisms and also review some positive aspects of having whales within your ecosystem.

Anti-whaling mechanisms

The most common anti-whaling mechanisms focus on limiting the number of tokens that can be transferred in a single transaction.

Setting a limit on the number of tokens per transaction helps prevent sharp price changes, but other mechanisms are available:

  1. Ownership Limits: Defining a maximum percentage of tokens that a management can own ensures a fairer distribution and prevents whales from accumulating too much power within the ecosystem.
  2. Temporary Blocked Contracts: Using smart contracts to block tokens for a set amount of time can prevent whales from selling large quantities of tokens all at once. This promotes a gradual release of tokens, maintaining price stability.

Anti-Whale configuration for your Avalanche token

You can set up these anti-whaling mechanisms using Smithii' s tool in a few simple steps:

Anti whale avalanche jpg - Smithii
  1. Connect your wallet: Use the button on the top right to connect your wallet.
  2. Select your created token
  3. Set the limit per transaction: Set the maximum number of tokens per transaction to restrict whale activities.
  4. Set the limit per block: Similar to the previous step, adjust this limit according to your strategy.

Advantages of having whales in the trading of your token

I don't want to leave this article without mentioning that there are also advantages of having whales trading your token. It is important to consider all aspects.

In some cases, having whales in your Liquidity Pool can be positive, as they can provide a significant portion of liquidity.

In addition, many traders closely follow the movements of whale wallets, which can attract more investors when a whale starts trading with your token.

It is important to note that not all whales perform pump and dump. When several whales work differently within a token, their large market cap can be difficult to move in a meaningful way.

Conclusion

While anti-whaling mechanisms are essential to maintain stability and fairness within a token ecosystem, it is crucial to also recognize the positive contributions that whales can offer.

Surpass your competitors?

Join our Newsletter and receive weekly blockchain news specialized in NFT creators.

PODIUM PNG - Smithii

How useful did you find this content?

Click on a star to rate it!

Average score 0 / 5. Vote tally: 0

So far, no votes. Be the first to rate this content.

Since you have found this content useful...

Follow us on social media!

I'm sorry this content wasn't helpful to you!

Let me improve this content!

Tell me, how can I improve this content?

Leave a comment

SMITHII LOGO

The all-in-one solution for web projects3

Chains

Solana

Ethereum

Base

Polygon

Binance

Tron

Arbitrum

Resources

Tutorials

Affiliates

NFT Course

Token Course

Blog

Dictionary

Sitemap

Subscribe to our Newsletter

© 2024 Smithii | All rights reserved

THE ONLY NEWSLETTER YOU WILL EVER NEED

What we share in the Smithii Newsletter?

  • Weekly News
  • Deep Project Analysis
  • eBooks
  • Free Courses
  • Airdrops Opportunities
  • Smithii Updates and Offers