Be the Whale: White Whale fundamental and tokenomics analysis
What's the project all about? Why is it important? How is it going to gain adoption? Price predictions and more.
This article is ad-free and zero cost. The intention is to expand knowledge within the crypto ecosystem. Let’s go!
WHAT IS WHITE WHALE?
It is a platform that enables the enforcement of the UST peg in a decentralized manner by providing the technical tools which allow regular users to participate in complex trading strategies such as arbitrage.
FUNDAMENTAL ANALYSIS
1. UTILITY:
What is WhiteWhale solving?
The Terra ecosystem is based on the success of UST. For that to happen, UST must maintain its peg, meaning that it should always be worth $1USD. There are times when UST is trading at above or below $1. That’s when arbitrage comes into play and the peg is secured.
Getting into arbitrage requires capital, technical knowledge, and bot infrastructure… in short, as of now, it’s strictly a whale’s game. White Whale gives the opportunity to Be The Whale
It gives more security to the UST peg, setting up the Terra ecosystem for success.
2. ROADMAP
Here’s the roadmap that’s on the Litepaper.
They haven’t accomplished their deadlines, but the roadmap shows a long term vision for the project and a lot of functionalities added through time:
A couple of new Vaults besides UST,
The “War Chest”,
The Community Fund,
Cross chain arbitrage opportunities
3. TEAM
Sebastian has been active on social media, we know his face, which is very positive. He has skin the game.
Red flags: the team has already made a few mistakes. They got rugged by people pretending to be Kucoin. And they had a minor discrepancy over a twitter poll with the community. However, they showed transparency and willingness to listen to the community. They look like people learning from mistakes.
4. PARTNERS
Very good partners.
5. COMPETITION
There is NO actual competition right now. This product is unique.
This raises the question… is it because no one else thought about it before, or because it is not a project worth doing?
My thought is that there hasn’t been any blockchain so dependent on the enformcent of the peg, so there was no real need before.
6. SOCIAL MEDIA
Discord channel: 4k members —> Low
Twitter: 37k followers —>Good
Telegram: just launched.
Medium: a couple of published articles.
7. NARRATIVE
The narrative is very important in crypto and WW has a very good one: BE THE WHALE. You can earn those profits reserved for the privileged. Its consistent with the decentralization narrative and the income equality narrative.
Also, being presented as the protocol that is going to ensure the peg (100% vital for Terra ecosystem) is also very strong.
8. AUDITS
Audits are a work in progress, with one being finished in the next couple of weeks and another one starting in Mid-January, according to the Team.
TOKENOMICS
1. TOKEN USAGE
Staking and voting.
“The WHALE token will function as an over-arching utility token providing ecosystem stabilization features. All WHALE tokens provided by users will be held in the War Chest Vault, which will deploy and deposit assets into all of the single asset arb vaults on the platform, as well as utilize its own yield bearing strategies, such as protocol owned liquidity. Therefore, the WHALE token is the only token that provides access to multiple arbitrage and other yield bearing opportunities across the ecosystem from one vault.” (Litepaper)
2. SUPPLY
It has a max supply of 1billion $WHALE.
Fair distribution. They had a Liquidity Bootstrapping Pool type sale, which was quite a success.
3. MONETARY POLICY
Also, there’s been a recent Whale Token Burn. Unassigned WHALE tokens leftover from the seed, private, and advisor rounds, totaling 48,276,000, nearly 5% of the total supply, have been burned.
4. PRICE
So, here’s the analysis on what the price could look like. It is hard to give a target price, as there are no direct competitors who offer the same service within or even outside of the Terra Landscape, so I am going to make a few assusmptions.
Current state of the market:
Whale Market cap = $28M
Fully diluted market cap = 1B $WHALE x 0.21UST = 210M UST
LUNA current market cap: $32B at $90UST per Luna.
UST market cap: $10B
UST in Anchor protocol: $5B
USDT market cap: $78B
USDC market cap: $42B
USDT + USDC = $120B
If UST becomes the main stablecoin in crypto, that means at least 12x in UST marketcap (and that’s just assuming that nobody new enters crypto, which is nonsense… stablecoins have grown +400% during 2021.)
Thist means also that Anchor would have 5B x12 in deposits = 60B
Which means that 60B would be in WhiteWhale because there is no reason not to put it there. In Anchor, you get the Anchor yield. In WW, you get Anchor yield + Arbitrage profits + (possibly: aUST degen strategies). It is a no brainer.
I am going to compare the MC/TVL ratio of Anchor protocol to predict WHALE price.
ANC market cap: $678M. ANC TVL : 11B
ANC MC/TVL ratio : 0.0617
Whale Market cap = 28M
Likely Whale TVL= 5B —> Remember, the assumption is that all Anchor deposits are going into WhiteWhale.
WHALE MC/TVL ratio = 0.0056
If we assume that WHALE is going to have the same ratio as ANC, we can expect at least a 11x.
If we assume that UST is going to be at 100B MC, we can expect a 100x.
How is crypto market doing in general?
We’ve seen big corrections within the major cryptocurrencies. It is impossible to know if we are headed to more corrections or not but I personally think that we are going to see a huge bull market in the next months.
Crypto is still only 2.5T market cap, way less than GOLD (11T), Stocks (+100T) and Bonds (+100T).
Mass adoption has not yet come, but there’s a lot of progress being made, with many people joining due to NFTs, Play to earn games, and also people seeking a hedge from inflation and the stocks bubble. Also, institutions are already adopting.
So if we are up for a bull market, every altcoin benefits. And specially I am very bullish on the Terra chain, which is my strongest bet for 2022.
Disclaimer: this was NOT financial advise.
Twitter @JuampiAranovich
NEXT WEEK ANALYSIS: LESERVE DAO
If you enjoyed this ad-free and zero-cost content, you are welcome to subscribe!
Also, comment what crypto you’d like me to analize, or reach out and tell me about what you would like to learn!