About Pre-Market

P2P trade token allocations pre-TGE

The term Pre-Market was first introduced and popularized in crypto by Whales Market. It refers to peer-to-peer trading of token allocations before the official Token Generation Event (TGE). Today, Whales Market stands as the leading pre-market DEX platform with over $300M in trading volume.

1. The idea behind Pre-Market on Whales Market

The novel idea behind Pre-Market on Whales Market is centered on the inherent risks of peer-to-peer cryptocurrency trading.

Formal methods like social groups, private messages, or decentralized platforms have long been known as the major methods to facilitate OTC trading within the crypto space. Despite being recognized for the accessibility and convenience they have proven, the negative impact of the lack of robust management on the asset transferring procedure has. This exposes traders to scams and fraud, where sellers may fail to deliver promised tokens.

The main reason for this is because these tradings don't require any commitment amongst the parties involved, as the trading routes between them are not porous and most likely based on the routes between both parties

Whales Market addresses this issue by bringing OTC trading onto a single platform. This allows buyers and sellers to facilitate mutually agreed upon on-chain transactions. Capital remains locked in smart contracts and is only released to the parties upon successful transaction settlement. This advancement not only streamlines the trading process but also significantly reduces the risk of financial losses due to deceptive practices.

---

2. How Whales Market revolutionizes Pre-Market trading

While Pre-Market trading bring a unique opportunity to gain early access to high-potential pre-TGE tokens, the traditional peer-to-peer (P2P) methods for these deals are risky. Historically, these trades were conducted in social groups or private chats, lacking essential safeguards and leaving traders vulnerable to scams, fraud, and failed token deliveries.

Whales Markets revolutionizes this process with smart contracts, facilitating a mutually agreed on-chain transaction for both buyers and sellers. This innovation not only makes trading more accessible but also significantly reduces the risk of financial loss due to fraud.

---

3. How it works

1. Seller lists pre-TGE token allocations on Whales Market.

2. Buyer accepts the order, with both parties locking collateral in smart contracts.

3. Settlement occurs on-chain once conditions are met, ensuring secure delivery of tokens after TGE.

---

FAQ

What is Pre-Market?

Pre-Market is the trading of high-potential tokens before they are officially launched on exchanges. It offers traders an opportunity to gain early access to new projects.

How does the Pre-Market work on Whales Market?

The seller lists tokens, and the buyer accepts the trade by locking collateral in a smart contract. Once conditions are met, the settlement happens on-chain to ensure the safe delivery of tokens.

How does Whales Market solve the risks of P2P trading?

Whales Market revolutionizes the P2P trading process by using smart contracts. This allows transactions to occur on-chain, significantly reducing the risk of fraud and failed token deliveries.

What is collateral?

Collateral is an asset that the buyer and seller locks in a smart contract to secure the transaction and provide protection for both parties.

What happens at the Token Generation Event (TGE)?

After the TGE occurs, the settlement is completed on-chain. The system automatically sends the tokens to the correct buyer's wallet according to the terms agreed upon in the smart contract.