Gnosis, the team building new market mechanisms for decentralized finance (DeFi), has launched a new platform that uses batch auctions to enable fair price discovery for token auctions.
Called Gnosis Auction, the new platform is designed to make finding an initial price point for a new token fair, permissionless and even to help prevent the volatility and price spikes that new tokens often experience.
15% of all cryptocurrencies experience regular ‘pump and dumps’, which contributes to the reputation of volatility and uncertainty that still dominates mainstream attention when it comes to crypto. Gnosis Auction solves this issue for new ECR-20 token launches, enabling both ‘auctioneers’ and ‘bidders’ to simply find a fair and even price point. Furthermore ‘gas wars’ are a common issue among other auctioning methods, Gnosis Auction uses batch auctions to solve this issue and reduce the value being extracted from the process.
“With ICOs and token launches notorious for creating volatile and erratic price points, the method behind discerning what a new token should cost is complicated. Gnosis Auction has been designed to address this issue, allowing new token launchers to now ask their audience what it’s worth in a completely fair and permissionless way,” said Stefan George, Gnosis Co-Founder and CTO.
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