Are Whales Killing the NFT Space?

They can.

The NFT space is relatively new and most people here are entrepreneurs from the crypto space that are used to buying low and selling high.

It’s normal to buy crypto and hodl it for a year or two.

But in the NFT space, this sort of activity could be damaging.

Eg, Cryptovoxels, Decentraland and any metaverse project. If a whale comes and hodls a big piece of land with NO intentions to build for 2-3 years..well, you’re just going to have a big gaping hole in the project. Not good for the community, not good for the project and guess what?

Not good for the whale.

But in other NFT projects, hodling does no harm and in fact, is a big part of the project.

Eg, Cryptopunks, Art, even collectible Cards.

Want to hodl a cryptopunk for 10 years? Go for it. The project is DESIGNED to be held. Like Art that appreciates in time.

With Gods Unchained, your card can be 1 of 4 ‘shines’.

Investors can buy up these cards but most cards are still used in game play as the lowest shine cards are pretty cheap.

Art is kind of designed to buy and hold.

Axie Infinity has a class of Axie’s that are ‘Origin Axies’. These have an Origin tag, have a chance of having a ‘mystic’ part and are slowly going up in value.

But the other Axies can be bred and played completely not effecting the Oirin Axie Values.

Some PROS & CONS of Whale Investing/Hodling

Let’s just talk Land Projects for the moment and the activity of buying/hodling.


  • Helps fund developers.
  • Creates Price action which brings news and interest from more investors/builders.
  • Hodlers can get rich which they may use to sell their land and put more $ in the ecosystem. Wearables, more land, maybe build projects.


  • Creates empty land spots in the world where builders can’t build.
  • Outprices builders/creators thus slowing build activity
  • Hodling and not doing anything = upwards price action with no value added. (As supply is removed temporarily).


These worlds need as MUCH builder momentum as possible. Anything that hinders this slows the project growth.

Can whales and builders live in harmony? I think there is a model that works and needs to be explored/found.

What Should a Whale Do?

Buying and hodling in metaverse projects is fine BUT it’s in the Whales best interest to help grow the project by bringing in new people to the space, finding collaborations, holding events and bringing attention to the project so you can give build rights or at least show case what can be done with the project on your land.

If you’re going to hold your 1,000 pieces of land for 3-4 years, don’t be surprised if you come back to not much change. You own part of the project so help build it.

In real life, there are land lords and people that rent/utilize the space. Most businesses don’t own their commercial space.

In the virtual world I can imagine it will work more or less similar.

Land owners can rent out to business owners/builders.

Right now, there’s not so much demand to build/rent but as the project grows and we see visitors by the 1,000’s to our events then would businesses want to rent and get involved? Hell yeh.

I’ve worked in marketing in the past. Where there’s eyeballs, there’s interest from businesses.

If we’re expecting these lands being worth $10k+ each just from hodling, it’s not going to happen.

The builders will push it there, (if it ever happens), so incentives for both activities need to be aligned.

Some Solution Attempts

Decentraland have the MANA token that aligns incentives. Want to buy into Decentraland and not do anything? Buy MANA.

There’s also a Land pool that whales can contribute to while still holding their LAND. Builders can deploy to this land pool. This is a HUGE solution and I urge other projects to explore this.

The below massive piece is part of the land pool.

This allows people to deploy on the land.

Below items are from builder contests.

Cryptovoxels are adding more LAND as islands.

A bit controversial but an attempt to bring more builders.

Again, builders/artists will make these worlds amazing NOT investors.

Investors should work to enable this activity and provide the foundation tools to allow creators/artists to build beautiful things.

There’s a ‘Dead lands ping’ being discussed in Decentraland.

Maybe whales that don’t interact with their land for a year automatically get added to a land pool where builders can deploy to. Whale can claim that land back at any time/when active again?

Again, there IS a model that we will find solutions to as we keep building.

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