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The core system for token trading before listing on Whales Market relies on collateral. Sellers lock assets as collateral and guarantee to buyers that they will receive tokens once officially released. If a seller fails to fulfill the order, their collateral will be transferred to the buyer as compensation.
However, this system is not without potential drawbacks, especially when dealing with token generation events (TGEs). We have previously discussed perpetual futures contracts issued before launch, and how exchanges enable traders to leverage assets not yet released. However, Whales Pre Market differs as it allows for token allocation before TGE. This practice, common in various private communities and some centralized platforms, often lacks security, exposing traders to fraud or failure to deliver promised tokens. Whales Market addresses this by using smart contracts to facilitate on-chain transactions agreed upon by both parties, preventing fraudulent activities.
Trading tokens can be done in two ways:
1. Creating your own buying or selling quotes.
2. Fulfilling others' buying or selling quotes.
Both buyers and sellers must wait for the token generation event (TGE) before settlement or canceling orders. Settlement between buyer and seller begins a 24-hour countdown upon the TGE, when tokens are released by the foundation. If the seller fails to settle on time, they forfeit the collateral funds. If the buyer chooses to cancel the order, these funds are transferred to them. |
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Post time 11-4-2024 09:49:50