Produced by Odaily
Author | Wang Ye
Editor | Lu Xiaoming
Produced by Odaily
Author | Wang Ye
Editor | Lu Xiaoming
On the evening of June 19, the first round of Dutch auction of Algorand, a star public chain project, ended. Starting from the highest price of 10 US dollars, it gradually decreased, and finally ended the auction at a price of 2.4 US dollars. Based on the private placement price of 0.05 US dollars, it has already been 48 times. A total of 25 million ALGO tokens were sold, with a turnover of 60.4 million US dollars. The auction lasted for 3 hours and 37 minutes.
According to the current price of ALGO at $2.4, the current market circulation of ALGO is 25 million, so the circulation market value of Algorand is 60 million US dollars. According to the current ranking of the circulation market value of CoinMarketCap, the circulation market value of ALGO ranks around 100 in the digital asset market.
Traditional auctions, bidding auctions, final decision. A Dutch auction is a special type of auction. Also known as "reduced price auction", it refers to an auction method in which the bidding price of the "target" of the auction decreases from high to low until the first bidder answers (reaches or exceeds the reserve price), and the hammer is sold.
Ms. Chen Jing, the chief scientist of Algorand, explained to everyone why Algorand chose the Dutch auction when she visited the Odaily Chaohua community: "Dutch auction is a very classic auction method. The main reasons why Algorand Foundation chooses the Dutch auction are as follows Point: First of all, the core of the Algorand network and borderless economy is fairness. The Dutch auction determines the fair price of the token by the market, rather than setting the price by any specific entity. At the same time, in the Dutch auction, the tokens obtained by all participants The prices are the same, treating all participants fairly. And the Dutch auction is very convenient for users to participate remotely. During the foundation's auction, users do not need to be online all the time. Users can bid and go offline, and then they can come back online and continue bidding .”
Algorand Dutch Auction lasts for 5 years, with 2 phases per month, 25 million ALGOs are auctioned in the first phase, the monthly target is 50 million ALGOs, and 600 million ALGOs per year, so the total amount of ALGO auctions is 3 billion, according to ALGO’s $2.4 Calculated at the current price, ALGO's current total market value is 7.2 billion US dollars.
After the end of this ALGO auction, the repurchase mechanism was activated. During the window period of 7 days after 1 year, all ALGO subscribed in the auction stage can apply for repurchase.
With the launch of the mainnet, the private placement nodes will be unlocked every day, and each node will unlock 1/730 of the total amount of tokens in hand every day, and the unlocking will be completed in two years.
Exceeding the expectations of many investors, ALGO ended the first round of auction at a price of US$2.4, which can be said to be the first victory. Followed by reports are large and small exchanges, wallets and other institutions vying to cooperate with ALGO.
On the evening of June 19, Coinbase Custody announced through its official Twitter that it will support the deposit and withdrawal services of the Algorand token ALGO. And at 8:00 p.m. EST on June 20th, it will be listed on the BitMax.io (BTMX) exchange for the first time.
