In my previous post, I shared a brief introduction to social tokens and introduced you to Rally Token ($RLY). As I look into other social tokens, it is my goal to explore them and see if they have potential. In the white paper for Whale, it is described as a social currency that is collateralized by rare non fungible token assets. The social currency will have no more than 10 Million $WHALE ever minted. So there is a level of scarcity in the number of tokens, which can be reassuring that they may increase in value.
One novel idea that was interesting was where this community could rent NFT. I have heard where some gaming NFT can be rented and used within games. A player may not have the ability to buy a gaming NFT but could rent it from the owner and use it in a game for a period of time. This is interesting because it provides utility to the NFT and useful as another revenue stream for the owner of the NFT.
The Whale.me website is simple to understand and appears to be straightforward. The four areas for the $Whale Holders is 1) renting NFTs from the vault, 2) purchase rare NFTs, 3) monthly mining rewards, and 4) voting within the DAO. Right now the niche seems promising with renting of NFTs, but needs to grow larger to be profitable for those participating in the community. In my personal opinion, I think this may not be sustainable with just a vault of rare NFT unless there is a community that will be able to utilize them in a larger capacity like in the gaming industry.
What I do find a bit concerning is the fact the white paper does not list the founders or list a group of people overseeing the project. This may be due to the governance where those that stake the $WHALE have various voting powers such as: creation of community events and sale of NFT assets in the vault. Furthermore, the white paper is fairly boilerplate with legal information and doesn’t get very technical in the process of renting NFTs or going into detail of the NFT vault. They state all NFTs in the vault can be viewed on OpenSea. I would have liked to see more clarity on the types of NFTs they look for by describing the criteria for scarcity and rarity. I am a novice when it comes to NFTs, but there seems to be a lack of clarity in the whitepaper.
The last quote from the Whale.me site is a bit alarming for me as a long term HODLer in crypto. “$WHALE is my mark of defiance in the face of greed over fundamentals. $WHALE is my experiment to see if we can make a return to stability and true value.” - WhaleShark. Somewhat anonymous signature name and stating this is an experiment. For me this is something I will not touch.
This information is for educational purposes only and not financial advice. Do your own research.
