The Secret Weapon of Airdrop Hunters: Whales Market Point Trading

Whales Market

28 May 2025 — 10 min read

Introduction to Point Market Trading

When crypto veterans talk about “getting in early,” they increasingly mean trading points—off-chain balances that protocols award to power-users months before a token-generation event (TGE). EigenLayer “Restake” points, friend.tech “Social” points, Hyperliquid “Hype” points, MarginFi “Mip” points—the list grows weekly. These points function like live, programmable IOUs: they accrue to wallets in real time, can be transferred peer-to-peer, and almost always convert 1-for-1 (or via a published ratio) into the eventual TGE token. The result is a brand-new, fast-moving Point Market that lets investors price a project long before centralized exchanges (CEXs) or DeFi pools exist.

Why care? Because history keeps rewarding people who understand pre-TGE price discovery. Private-round allocations for dYdX, SEI, or JUP often listed 2-4× higher on day one; the same pattern is now playing out for points. Airdrop hunters, KOL treasuries, and institutional desks are no longer waiting for Day-0 listing they’re closing seven-figure swaps on specialized OTC venues months in advance. And the most liquid of those venues, by volume and user count, is Whales Market, a Solana-born DEX that today spans 23+ chains

Point Markets Explained

Origins of the “Points Meta”

The points phenomenon began in mid-2023 when proto-layer-2s and restaking protocols wanted to reward early traction without violating securities law. By issuing non-transferable points, teams could gamify growth: more TVL, trading volume, or referrals translated into more points and, eventually, token allocations. EigenLayer popularised the model; friend.tech’s social-trading craze put it on retail radar; Hyperliquid and MarginFi proved it could drive nine-figure on-chain volumes.

With demand for early exposure surging, OTC traders started writing informal IOUs (“I’ll send you X points, you send me stablecoins”)—but bilateral swaps quickly ran into escrow risk. The market needed professional rails: deterministic smart-contract settlement, collateral safeguards, and multichain support. Enter Whales Market in January 2024.

**What Exactly Are Points?**

Functional Definition

Points are non-transferable accounting units that track a wallet’s contribution to a protocol and are expected — but never guaranteed — to convert 1-for-1 (or via a formula) into fungible tokens at TGE (token-generation event).

Points differ from:

Locked allocations (contractually committed token amounts).
Off-chain IOUs (tradable promises with no on-chain footprint).
ERC-20 “test tokens” (already transferable).

Instead, points are reputation ledgers. Most live off-chain in a protocol’s database, updated via Merkle proofs or API calls. Others (e.g., Hyperliquid Hype Points) exist directly on-chain as non-transferable ERC-1155s, but with transferability disabled until TGE.

How Points Accrue Value Before TGE

Scarcity & emissions: Teams usually publish a conversion curve (e.g., 1 point = 0.75 token up to 1 B points) and a total supply cap, giving traders a numerical basis for valuation.
Snapshot schedules: Announced snapshots (or ongoing streaming snapshots) anchor timelines; points earned after the final snapshot may be worthless, nudging traders to unwind positions early.
Implied FDV math: If a protocol’s private round valued tokens at US$0.10, and one point converts to one token, then a US$0.04 point implies a 60 % discount—tempting if the market believes the TGE will re-rate higher.

Supply, Emission & Conversion

Projects typically reveal three parameters:

Total point supply (often inflationary while the program runs)
Snapshot deadlines for eligibility
Conversion rate or weighting formula at TGE

Armed with those, OTC desks model potential fully diluted valuation (FDV) and pick entry levels.

Why Trade Points at All?

Points are not free magic internet scores:

Early Upside – Historical data show well-designed airdrops list 2-4× above their private-round price on the first day of exchange trading.
Price Discovery – Teams gauge authentic demand long before launch; investors hedge.
Liquidity & Risk Management – Early backers can de-risk months before their lock-up cliff, freeing capital for the next play.

Why Points Markets Exist

Liquidity for Power-Users – Farmers often lock six-figure capital for months. Selling their points lets them rotate into the next campaign.
Price Discovery for Teams – Whales monitoring secondary prices tweak tokenomics before launch.
Hedging for Investors – Early backers short points to hedge a looming unlock.
Speculation for Retail – A $200 buy in friend.tech Season 2 points that 5× at TGE is the new “lottery ticket.”

How Points-Based Airdrops Were Distributed

Earning Points: Your Ticket to the Airdrop Party

The first step in any points-based airdrop is earning those precious points. Projects got creative with the ways you could stack them up:

Platform Activity: Used a decentralized exchange like Hyperliquid? Every trade or liquidity provision earned you points. For example, Hyperliquid’s airdrop rewarded users based on trading volume, with some scoring thousands of $HYPE tokens.
Community Tasks: Joined a project’s Telegram or retweeted their announcement? Campaigns like Smog Token’s Zealy tasks gave points for simple social media actions.
Holding Tokens or NFTs: Some projects, like Vottun, gave bonus points if you held their tokens or specific NFTs in your wallet.
Testnet Participation: Early adopters who tested networks like Linea’s Voyage program earned Linea XP Points (LXP) for bridging assets or trying new features.

The catch? Points were usually non-transferable, so you couldn’t buy or sell them. They were your personal scorecard for the airdrop.

Snapshots: Freezing the Leaderboard

Once the points campaign was underway, projects took snapshots to capture your activity or wallet balance at a specific moment. Think of it like a photo finish in a race—your points or holdings at that exact time determined your reward.

For instance, LayerZero took a snapshot on May 1, 2024, to measure user interactions across its cross-chain protocol. If you’d been bridging assets or staking, those activities were locked in for the airdrop calculation. Some projects announced snapshot dates in advance, while others kept them secret to discourage gaming the system.

Distribution Methods: Getting Tokens to Your Wallet

Now, the exciting part—how did the tokens actually land in your wallet? In 2024, points-based airdrops used a few key distribution methods:

Automatic Drops: Some projects, especially those rewarding token holders, sent tokens straight to your wallet via smart contracts. No effort required! If you held $SMOG tokens, for example, you might’ve woken up to a shiny airdrop in your wallet.
Claim Process: Many airdrops required you to visit the project’s website, connect your wallet, and claim your tokens. LayerZero’s $ZRO airdrop worked this way—users had to confirm eligibility and hit “claim” to receive their share.
Vesting Schedules: To prevent everyone from dumping tokens at once (and crashing the price), some projects like Vottun used vesting. You might get 25% of your tokens upfront, with the rest unlocking over months. Smart move for price stability!

Big Wins and Big Names of 2024

Points-based airdrops in 2024 weren’t just hype—they delivered serious rewards. Here are a few standouts:

Hyperliquid ($HYPE): Launched on November 29, 2024, this airdrop rewarded traders with an average of 2,881 $HYPE tokens, worth over $34,000 at $12 per token. Points came from trading perps and providing liquidity.
Linea Voyage: Linea’s ecosystem rewarded users with LXP points for bridging funds or using DeFi apps. The airdrop was still in the works by late 2024, but points were the key to eligibility.
Smog Token ($SMOG): This Solana-based meme coin allocated 35% of its supply to airdrops. Holders and Zealy task completers earned points, with top participants bagging hefty rewards.

The Mechanics: From Points to Tokens

Snapshot: Protocol freezes the points ledger.
Formula: Devs publish a conversion ratio (e.g., 10 000 points = 1 token).
Distribution: Tokens airdropped or claimable via Merkle.
Claw-backs: Bad actors discounted; exchanges of points honoured only if wallet still holds them.

Because the ledger usually lives off-chain, trading points requires one of two work-arounds:

Escrow Contracts (Whales Market model): Seller deposits wallet custodianship proof + collateral; buyer deposits stablecoins; contract releases funds post-TGE or refunds if token never launches.
Full Wallet Transfer (informal OTC): both risky and often violates TOS.

Where Are Points Traded?

Old way: Telegram or Discord DM

Pure trust, lots of scams, very manual.

Modern way: purpose-built OTC DEXs

Whales Market is the biggest. It bundles an escrow contract so neither side can run off with the money.

What Is Whales Market in the Point World?

In the ever-evolving landscape of cryptocurrency, new platforms and innovations continue to reshape how we trade and interact with digital assets. One such platform making waves is Whales Market, particularly in the realm of the "Point World." If you're wondering what Whales Market is and how it fits into this unique ecosystem, you're in the right place. Let’s dive into this decentralized marketplace and uncover its role in transforming peer-to-peer (P2P) trading.

What is Whales Market?

Whales Market is a decentralized over-the-counter (OTC) trading platform that facilitates secure, trustless P2P transactions across multiple blockchains, including Solana, Ethereum, and Manta Network. Unlike traditional centralized exchanges, Whales Market eliminates the need for intermediaries by leveraging smart contracts to ensure transparency and security. It’s designed to trade a variety of assets, including pre-token generation event (TGE) tokens, NFTs, vesting contracts, and, most notably, crypto points. This brings us to its pivotal role in the Point World.

The Point World: A New Frontier in Crypto

The "Point World" refers to the growing ecosystem of crypto points, which are rewards or incentives offered by Web3 projects to encourage user participation. These points, earned through tasks like engaging with a protocol or holding specific assets, often serve as a precursor to token airdrops or other rewards. However, until they are converted into tokens, points are typically illiquid and challenging to trade.

This is where Whales Market shines. Its Points Market provides a dedicated marketplace for trading these points, allowing users to buy and sell them before they are officially converted into tokens. Projects like friend.tech, Kamino Finance, Hyperliquid, and EigenLayer have their points listed on Whales Market, enabling early investors and participants to monetize their rewards or speculate on their future value.

How Does Whales Market Work in the Point World?

Whales Market’s Points Market operates with a structure similar to its Pre-Market for pre-TGE tokens but with nuances tailored to the unique nature of points. Here’s a breakdown of how it functions:

Smart Contract Security: Trades are secured by smart contracts, which hold assets in escrow until the transaction is complete. This eliminates the risk of fraud, a common issue in traditional OTC trading where trust between parties is a hurdle.
Collateral System: Sellers must lock up collateral to guarantee they’ll deliver the points or resulting tokens. If a seller fails to fulfill their obligation, the collateral is transferred to the buyer as compensation.
Conditional Trading: Since points may not always convert to tokens (depending on the project’s decisions), Whales Market’s smart contracts account for this uncertainty. If a project cancels its point-to-token conversion, the trade is voided, and funds are returned to the buyer.
Supported Ecosystems: As of now, Whales Market supports points trading on multiple blockchains, with Solana being a primary focus. It has expanded to include ecosystems like Manta Network and Ethereum, broadening its reach.
User-Friendly Process: To trade points, users connect a compatible wallet (e.g., SolFlare, Ledger, or Fractal), select the points they want to buy or sell, specify the amount, and confirm the transaction via the platform’s intuitive interface.

Why Whales Market Matters in the Point World

The Points Market addresses a critical gap in the crypto space: liquidity for illiquid assets. Here are some key reasons why Whales Market is a game-changer:

Trustless Trading: By removing the need for intermediaries and relying on smart contracts, Whales Market minimizes the risk of scams, which are prevalent in social group-based or centralized OTC trading.
Early Access to Value: Participants in Web3 projects can unlock the value of their points without waiting for token generation events, providing flexibility for airdrop hunters and early investors.
Price Discovery: Whales Market serves as a venue for pricing discovery of pre-listing assets, helping traders gauge the market’s perception of a project’s potential.
Multi-Asset Support: Beyond points, Whales Market supports trading of pre-TGE tokens, NFTs, and vesting contracts, making it a one-stop hub for early-stage crypto assets.
Revenue Sharing: The platform incentivizes participation through its native token, $WHALES. Stakers of $WHALES receive $xWHALES, which entitles them to a share of the platform’s revenue (60% of OTC market fees) and serves as collateral for trades.

Risks and Considerations

While Whales Market offers exciting opportunities, it’s not without risks. The speculative nature of points trading means there’s no guarantee that points will convert to valuable tokens. If a project fails to deliver on its promises, trades may be canceled, but market fluctuations could still impact outcomes. Additionally, the pre-market space is still nascent, and users are advised to conduct thorough research before participating.

Getting Started with Whales Market

Ready to explore the Point World with Whales Market? Here’s how to begin:

Visit https://app.whales.market/.
Connect a supported wallet
Navigate to the Points Market section.
Choose whether to buy or sell points from listed projects.
Specify the amount and confirm the transaction.

Conclusion — How to Find Your Edge

Points trading blends the asymmetric upside of seed investing with the speed of spot markets — but only if you control counter-party risk, information asymmetry, and liquidity timing. Purpose-built venues like Whales Market’s Points Hub solve the first two with smart-contract escrow, Whale Shield, and transparent on-chain order books. Mastering the third is up to you:

Model Implied FDV — (Points Price × Total Supply) ÷ Conversion Ratio.
Track Snapshot Calendars — liquidation windows tighten post-snapshot.
Diversify Campaign Risk — allocate across sectors (restaking, social-fi, L2s).

Whether you’re an angel hedging seed exposure, an airdrop hunter farming the next big thing, or a retail trader chasing early alpha, understanding the nuances of points — and leveraging Whales Market’s infrastructure — will position you ahead of the curve in the next cycle of crypto innovation.