ForeTell Research Report: Decentralized Over-the-Counter Trading Platform WHALES for Token TGE Pre-Trading Scenario

Project Introduction

Whales Market is a decentralized over-the-counter trading platform that allows users to directly exchange assets across multiple blockchains, completely trustlessly, ensuring security.

Product Form

Currently, Whales Market offers two segmented products: Pre Market and Point Market.

++Pre Market++

Pre Market allows users to trade tokens before their TGE through Whales Market. P2P trading of token allocations before TGE has long been a common practice, mainly conducted through social groups, private messages, and several centralized platforms. Whales Market facilitates on-chain transactions between buyers and sellers through smart contracts.

Pre Market product interface

Technically, Whales has platformized the traditional over-the-counter "double escrow" trading, meaning that both the buyer and seller deposit the same amount of funds representing the total value of the transaction into the Whales platform as collateral. After the token's TGE, the buyer receives the seller's tokens through Whales, while the seller takes away the collateral funds (the seller's collateral and the buyer's payment). Whales collects a portion of the transaction fee as protocol revenue.

Pre Market technical implementation

++Point Market++

In the second half of last year, the two leading players in the Layer 2 and SocialFi fields, Blast and FriendTech, introduced point systems, sparking a trend of projects exchanging points for future token airdrops. This trend is part of a broader exploration of product market compatibility within the crypto industry and a user attraction strategy during market downturns. Users can earn points linked to future airdrops through on-chain product interactions and social mining. However, these points lack liquidity before the project's actual TGE, which seems somewhat strange for a crypto market that emphasizes wealth effect and trading efficiency. Whales has recognized this gap, allowing users to trade points in the Point Market.

Pre Market product interface

Similar to Pre Market, Point Market also utilizes smart contracts to facilitate on-chain transactions agreed upon by buyers and sellers.

Development Status

As of now, Whales Market has over 31,000 users and a trading volume exceeding $110 million. It can be said that Whales has effectively addressed the trading needs of users before TGE, providing a trading scenario through the platform and smart contracts to meet this demand. Whales profits from collecting transaction fees on each transaction, and this revenue model will also empower the platform's native token, $WHALES.

Whales Market business data

$WHALES

$WHALES is primarily used to expand the growth of Whales Market. The total supply is 100,000,000 tokens, with no public presale conducted. Initial liquidity is provided by LootBot Treasury, which also retroactively airdropped a portion to $LOOT stakers and $xLOOT holders.

$WHALES has the following two uses:

1) Use of $WHALES tokens:

60% of transaction fees are distributed as staking rewards to $WHALES token stakers

20% of transaction fees are used for ongoing development expenses

10% of transaction fees are used for token buybacks and burns, promoting deflation

The remaining 10% of transaction fees are shared with LOOT stakers and xLOOT holders

2) Governance function:

Community members can use $WHALES to participate in voting on official and community proposals

$WHALES economic model

Team Background

In November 2023, LootBot announced a strategic partnership with Whales Market. In fact, the founder of LootBot, Dexter, is also the founder of Whales Market. LootBot launched in the summer of 2023 and is an automated airdrop interaction product, holding significant value in the airdrop mining space. The launch of Whales Market represents an important horizontal development in the airdrop mining sector, shifting from helping users mine for potential token airdrops to helping users trade potential token airdrops. The Dexter team has consistently focused on the needs of this group of Token Farmers.

Founders of LootBot and Whales Market

Conclusion

As a decentralized over-the-counter trading platform serving the trading scenarios before Token TGE, Whales has already formed a certain scale, with over 31,000 users and a trading volume exceeding $110 million. The $WHALES token also has a relatively good growth and governance model. Looking ahead, the trading scenarios before TGE have yet to be deeply explored, and Whales Market is expected to continue attracting more users, expanding market share through innovative products and ongoing development, maintaining a competitive advantage in the trading market.