Whale Market pre-trading prices are often higher than actual TGE prices. Be wary of artificial FOMO effects

Original author: wale.moca, Azuki researcher

Original translation: TechFlow

I researched and checked more than 12 airdrops and found that Whales Market is manipulating you.

Whales Market is a website where you can trade tokens and airdrop points before the token TGE.

Basically it is a pre-listing OTC transaction where you can create buy and sell quotes.

For example: the token $BLOCK is provided by Blockgames, and many people will have received an allocation of tokens due to the airdrop, or they invested in the private placement round.

In theory, they even have a certain amount of $BLOCK before the TGE. However, they cannot be traded on exchanges, because the tokens do not exist yet.

This is where Whales Market comes into play.

On Whales Market you can sell tokens OTC. In principle, you sell your rights to tokens at a certain price (regardless of how high the actual price at the TGE may be).

After the TGE, within 24 hours: the seller receives the agreed amount. The buyer receives the tokens.

In the past, many hyped tokens were traded here before the TGE. I’m sure you’ve seen posts like this on Twitter, which create a lot of hype around these tokens:

However, if you look at past pre-market trading on drops, you’ll quickly realize: the prices paid there were sometimes significantly higher than the “real” market price of the TGE.

I analyzed 12 airdropped tokens:

Big price difference right? But why? The team (and associated investors) have an interest in driving up the price of the token pre-listing.

A 10-30% drop in a token after listing can be attributed to speculation, but a drop of more than 50% is suspicious.

For example, $BLOCK had some suspicious transactions. The wallet bought two pending orders at prices well above the "floor price" after receiving funds from Binance, with zero previous trading activity. Fun fact: the wallet they bought from also had no previous activity. I'm not ZachXBT (an on-chain detective), so I didn't dig deeper.

As always, catching alpha is about paying close attention and not letting the hype convince you to do stupid things, such as buying when valuations are too high, or letting FOMO control you. Be especially careful with tokens with low pre-market volume, as they are more easily manipulated.

Whales Market is not the culprit, quite the opposite: the service they provide is very useful.

It's the vested interests that are building momentum for you, or if you can, take advantage of it, after all, anyone can list and sell there.

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