🧘♂️ALERT: Crypto Whale Tracking
Market Meditations | December 21, 2021
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Today, we will expand on a particular component of due diligence: tokenomics.
We will use Whalemap as an example.
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Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
? Deep Dive Tokenomics
The crypto market is full of opportunities and high reward. What comes with high reward? High risk. In the context of IDOs and investing in projects, this manifests itself in pump and dumps and rug pulls. This means that for anyone looking to participate in upcoming crypto projects, due diligence is of utmost importance. We wrote a due diligence guide here.
Today, we will expand on a particular component of due diligence: tokenomics. We will use Whalemap as an example. Whalemap is a blockchain analytics platform that uses data science to deliver real-time actionable trading insights by looking at big market players.
1️⃣ Token Supply
Community allocation. Note how Whalemap is allocating 20% of their token supply to the community through airdrop. It’s promising to see key supporters get rewarded. They are also coordinating a multi stage liquidity mining program.
Ecosystem Fund (Vested over 2 years). In addition to the community allocation, Whalemap has reserved a large proportion of tokens in order to improve the product itself. When we see these types of token distributions we must assess these in the context of the team and how well they are likely to use these funds.
2️⃣ Token Rewards & Incentives
Common token rewards outside of price appreciation as the project / protocol grows include governance rights and staking.
It’s promising to see teams go over and beyond to provide more token utility and rewards. That’s why the Whalemap team has worked to fuel utility through a secondary token (xWMP).
Users will be able to get access to Pro.Whalemap exclusively using xWMP. Whalemap offers many charts for free but also has their premium version, Pro.Whalemap, for those wanting extra features and benefits such as:
1) Super Real-time Analytics. Mempool analytics analysed in real-time.
2) Address Tagging. Tagging which type of player has made a transaction (exchange, OTC desk, retail player, whale, miner, etc.)
3) Multichain Support. We will be bringing classic Whalemap charts to Solana, Polygon, Ethereum, and other blockchains.
4) DEX Integration. Integrating a trade button on our platform that will allow our users to buy and swap tokens on a DEX without leaving Whalemap.
5) DeFi Analytics. Gain insight into DeFi tokens’ true value based on underlying fundamentals of their smart contracts
A range of features ensures that WMP and xWMP together are optimised for rewards and incentives:
Utility. As outlined above, exclusive usage of xWMP will be required to get access to premium features of Whalemap PRO.
Governance. Specialized governance power over Whalemap core believers.
Reward Redistribution. Stake xWMP to get rewarded from increased usage of the platform.
Non Linear Reserves. Dynamically decreasing share of Whalemap’s revenue going to reserves and limiting inflation.
Staking. Farm xWMP by staking WMP and get a subscription for free or claim xWMP as rewards.
Burning. Stabilising xWMP supply by burning it.
You can contrast this range of features with tokens that offer no utility beyond being a volatile asset.
Education with regards to project due diligence will provide a very valuable return for all readers. You’ll empower yourself to identify top projects and to interact with protocols that have long term ambitions and the interests of the community at heart.
? Further Resources
For a full research report on Whalemap, check out our premium packages. At the moment, we share research reports on our Discord. The scope of this feature was to educate our readership on project tokenomics. To learn more about the operations and people behind Whalemap, unlock our premium package.
?Bitcoin To Replace The Dollar?
Which famous crypto supporter was quoted saying Bitcoin will replace the US dollar?
❗Record Outflow Affect Digital Assets
Digital asset funds were hit hard this week. Investors pulled money (outflow) from funds focused on bitcoin and other major currencies such as ethereum, solana, and polkadot.
Following a 17 week inflow of money, Dec 17 signaled the week where cryptocurrency funds totaled $142 million outflow according to CoinShares.
There was an outflow of $89 million in bitcoin funds. The prior week saw an inflow of $145 million!
Ethereum saw outflows of $64 million. Solana saw $6.7 million worth of outflows.
While one reason alone does not pinpoint the outflow, the recent COVID variant – omicron has had investors wary and more reserved.
Many cryptocurrencies are seen by the moderate investor as risky assets and this is one of the reasons that lead to the outflow seen above.
It is important to remember that Inflow and outflows are caused by multiple reasons and by themselves don’t signify a bullish or bearish market.
2. Jack Dorsey
The Former CEO of Twitter and CEO of Square recently tweeted that Bitcoin will replace the US Dollar.
He did so by replying to Cardi B who was asking if any crypto will replace USD. His response was simple, saying “Yes, Bitcoin will”.
It is well known that Dorsey is a firm supporter of cryptocurrency. And interacting with major mainstream pop stars such as Cardi B will only increase crypto exposure to the mainstream.
Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
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