Anti-Whale Mechanism

Understand crypto terminology specifically for API Gateway, encompassing essential concepts and terms that streamline integration and communication within blockchain systems.

The Anti-Whale Mechanism is a feature designed to prevent large holders, known as whales, from manipulating asset prices. Whales can significantly influence market dynamics due to their substantial holdings.To address this, projects implement restrictions on large transactions. For instance, there may be limits on the amount a single wallet can buy or sell within a specific timeframe. This aims to create a more stable trading environment and protect smaller investors from price swings caused by large trades.Additionally, some projects use mechanisms like liquidity locks or smart contracts that penalize large transactions. These measures can reduce the risk of sudden sell-offs, which could lead to sharp price declines.In summary, the Anti-Whale Mechanism promotes fairer market behavior and enhances overall liquidity, making the ecosystem more resilient against the influence of a few large players.

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