Have you ever heard about Dutch Auction? If not this article is for you. Today we will talk about how did Crypto ‘Dutch Auctions’ show promise after $1.76M Offering Sells Out and what is Dutch Auction in Crypto. Let’s find out by reading the article below.
What is Dutch auction in crypto?
A Dutch auction (also known as a falling price auction) is an auction in which the auctioneer starts with a very high price and gradually lowers the price until a bid is received. The first bid wins the auction (assuming the price is above the reserve price), avoiding any bidding wars.
How did Crypto ‘Dutch Auctions’ show promise after $1.76M Offering Sells Out?
In 2020, Blockchain firm Solana has sold out of its tokens issued through a Dutch auction on the CoinList platform. On March 24, U.S.-based blockchain firm Solana successfully sold all of its tokens through a “kickstart auction” hosted by crypto fundraising firm CoinList.
Solana raised $1.76 million from 445 bids from 91 different companies. 8 million SOL tokens are distributed at $0.22 each. 1,416 potential investors have registered to participate.
CoinList's Launch Auction token offering model includes a "Dutch Auction" bidding for tokens begins with an initial price cap that was periodically lowered by a fixed amount. Investors bid for the number of tokens they wish to buy at a given price until all tokens are sold or the price falls to a floor price set by the issuer. Solana sets its price floor at $0.04 per token.
Solana issued a total of 186 million tokens, or 37.2% of its total supply, over four funding rounds, raising $25.6 million.
I hope this article will help you to learn how did Crypto ‘Dutch Auctions’ show promise after $1.76M Offering Sells Out and what is Dutch Auction in Crypto. Although not as widely known as initial coin offerings (ICOs) or initial exchange offerings (IEOs), the cryptocurrency industry is no stranger to Dutch auctions.
