In this article, we’ll examine WHALE, a decentralized autonomous organization backed by a portfolio of non-fungible tokens. WHALE members are wealthy NFT whales. They also support new projects. We’ll also talk about the reasons why whales support new projects. This is a brief introduction to WHALE and NFT. Let’s start with the benefits of WHALE.
WHALE is a decentralized autonomous organization
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WHALE is a social token backed by the Vault, a DAO-governed market for NFTs. As the first social token backed by NFTs, WHALE is a unique experiment in community-building. Its value derives from rare NFT assets and from the platform’s collection of NFT art. WHALE is a DAO, and the community of social token holders helps to shape the strategy.
WHALE tokens are only earned in certain ways, including selling NFTs to the WHALE Vault and participating in engagement activities held by WHALE partners. Currently, WHALE allocates 40,000 WHALE to community development. Among this amount, 25% is reserved for team stipends and community rewards, while 50% goes to ‘Hold-2-Play’ rewards. Whales can also participate in exclusive Discord channels and contests.
The primary goal of WHALE is to stabilize the ecosystem of the Terra cryptocurrency and to facilitate community arbitrage. Users deposit UST into a vault operated by ARB, which allows them to withdraw it when they want to. These transactions are clean and complex for operators, but no impermanent loss is experienced. The White Whale token will have a variety of functions, including community arbitrage.
Its token is backed by a portfolio of non-fungible tokens
The concept of non-fungible tokens is quite novel, but it is not a new one. Tokens that are not exchangeable, which is the most common type of crypto token, can be anything, including artwork, photography, or video clips. These tokens can be interchangeable, but cannot be replicated. In the future, this technology will be used in many different applications, including finance, art, and real estate.
In the crypto space, the term ‘non-fungible’ refers to a digital representation of an asset that is not interchangeable with other ‘fungible’ assets. This means that non-fungible tokens have unique copyrights, which can prevent identity theft and other forms of infringement. Non-fungible tokens also have a broader application: they are used in collectible items and as a way to verify ownership.
Non-fungible tokens are also used to represent unique items. For example, a non-fungible token can represent original artwork or a vehicle’s previous owners. In the digital world, this type of token can be used to trade collectible games, rare goods, or even access to special places. Tokens backed by non-fungible tokens can also be used to transfer ownership, which is useful for decentralized projects that rely on tokenized assets.
Its members are wealthy NFT whales
Become a Wealthy NFT whale is a common goal for many people, but until recently, there was no good roadmap to help them achieve their goals. Today, there is a Wealthy NFT whale community where people who want to become wealthy NFT whales can learn how to become one. This community is also becoming more active, with many wealthy people participating in the discussions. This article outlines how you can become one of them.
As the number of wealthy NFT whales increases, the group plans to open up whitelisting spots to mint their own apes. Wealthy Whales are members of the club who will have exclusive discounts on their merch. These proceeds will be reinvested into the collective wallet of the club. The group plans to make donations to four nonprofits, and voters will be asked to select the charity that will receive a $10,000 donation.
Benyamin Ahmed created a collection of 3,350 pixelated whales. Each whale image features a trait that makes it unique. This was one of the first NFT collections, and it costs $300. Gas costs are added to the total cost, and each NFT must be verified. That’s a significant amount of money to spend on an NFT collection. But the money you’ll save will pay off in the long run.
It is a social trading model
One of the most important things to consider when investing in NFT Whales is diversification. Diversification is important for both cryptocurrency and NFT whales. For cryptocurrency whales, it’s important to diversify across a variety of industries. The metaverse is one popular sector to explore, as is land plots. And for NFT whales, diversification is even more important. Diversification is essential for all three.
Traditionally, digital art has been widely available and undervalued. By adding the element of scarcity to digital art, NFTs have increased its value. Some collectors demand original works of art. One Honus Wagner autograph is valued at $3.12 million, and sneakerheads are obsessed with limited releases. Martin Shkreli bought a Wu-Tang Clan album for $2 million in 2015.
Some crypto traders have also adopted other investment models. They have started copying popular traders. Some of them even use whale accounts to earn money. This method is referred to as social trading. It has been used by 12-year-old Benyamin Ahmed, who was inspired by influential crypto stakeholders. In addition, a lot of other investors copy influencers and trade cryptocurrencies using the social trading model.
It is sensitive to profit
Observe the trading behavior of the whales to gain profit. For example, Art Block whales prefer to reinvest in their favorite collection while BAYC whales are looking to discover the next NFT gem. If the price spike of Collection is accompanied by a high number of whales buying it, this would mean a huge number of whales has piled up. During market sentiment spikes, the whales are most likely to sell their NFTs for a profit.
The BAYC whales, on the other hand, are more diversified in their NFT investments than most other projects in the space. They have low Whale Concentration Indexes, which indicate a diversified NFT portfolio. The whales have significant stakes in CryptoPunk, Art Blocks, and Meebits. Moreover, 40% of the BAYC whales own CryptoPunk and have an average portfolio value of $11.4 million.
While most NFT whales are crypto-whales, the most active ones are those who have accumulated massive amounts of ERC-20 reserves. The top 20 users on OpenSea and Rarible alone have accumulated $320 million of ERC-20 reserves. The NFT market is booming and the sales are rising quickly. The first half of 2020 and 2021 are predicted to generate $2.5 billion in sales.
It is a fast-forward and out trading model
If you are a crypto enthusiast, then you have probably come across Pranksy, who has sold 500 pieces of Sandbox land in the past six months and is now buying back 250. Besides that, he owns over a thousand NFTs in NFT Worlds, the hottest virtual world project recently. Earlier, Pranksy purchased 60 Doodles in 2021 and added another 41 this year.
This trading model is based on the idea that the NFT floor is the lowest price at which the NFT collection can be bought. If the floor price is low, whales may sell to make a profit. However, if there is good news, they will likely buy back at a low price and lay out the NFTs ahead of time. They are the reason for the volatility in the NFT market.
The newest NFT drop, The Sevens, was an extremely popular collectible profile picture that featured dystopian characters. The initial price of the NFT was just 0.07 ETH, and eager participants rushed to mint a contract. Within six minutes, the price climbed to 12,246 gwei and a median participant paid 1.49 ETH. The highest 5% of participants paid 2.44 ETH or more.