The Multiven Multicoin Token Sale: All You Need to Know.

Multiven keeps delivering on its roadmap goals. Its ICO is due to start on May 15, 2019, and will run for 350 days. The token sale will be done in a modified Dutch Auction-type fashion.

Multiven ICO Quick Facts:

  • ICO Start Date — May 15, 2019;
  • ICO End Date — May 1, 2020;
  • Total tokens up for sale — 700 Million, distributed at a rate of 2 Million Multicoins (MTCN) per day, over the specified period;
  • Starting minimum bid price on day 1 per MTCN is €1.

What is a Dutch Auction?

In traditional auctions, customers make bids of increasing value for a particular item, until none of the other bidders are willing or able to bid higher.

Dutch auctions work differently.

A Dutch auction is a public offering auction structure in which the price of the offering is set after taking in all bids to determine the highest price at which the total offering can be sold. In this type of auction, investors place a bid for the amount they are willing to buy in terms of quantity and price.

The concept and perception of fairness of this type of sale has a very meaningful bearing on Multiven’s token sale.

Fair is Fair: Multiven is conducting its Multicoin token sale through a custom Dutch auction

When the Multicoin (MTCN) token sale begins on May 1, potential investors will submit their bids for the number of Multicoins they want to purchase as well as the price they are willing to pay. For example, an investor may place a bid for 100 MTCN at €100 while another investor offers €200 for 100 MTCN.

Once all the bids are submitted, the allotted placement is assigned to the bidders from the highest bids down, until all of the allotted Multicoins are assigned.

However, the price that each bidder pays is based on the lowest price of all the allotted bidders for that day, or essentially, the last successful bid. Therefore, even if you bid €5 for a Multicoin, if the last successful bid is €1, you will only have to pay €1 per Multicoin.

Multiven chose this modified Dutch auction type sale specifically to ensure fairness. Investors should only participate in the auction and purchase tokens at the point in time when they consider the price to be fair, reasonable and relevant to the Multiven ecosystem.

Furthermore, spreading the Multicoin token distribution event over 350 days, ensures that (a) tokens are not centralised in the hands of a limited number of large investors and (b) investors all over the world have a fair chance of participating as and when they learn about the MOM.

The Multicoin Token Sale: A Practical Example

ICO Day 1 (“D1”)

The total amount of Multicoins available for purchase is 2 Million and bidding starts at €1 per MTCN.

Investors offer bids greater than the baseline price of 1€, along with the quantity of MTCN they’d like to purchase. At the end of the day, only the highest bids totalling 2m MTCN will count as winning bids.

The distribution price for D1’s MTCN will be the lowest bid price of the winning bids on D1, which will become the minimum bid price for Day 2 (“D2”), and so on, and so forth.

Example:

  • Investor A bids for 1.2m MTCN @ €2/MTCN
  • Investor B bids for 0.5m MTCN @ €1.50/MTCN
  • Investor C bids for 1m MTCN @ €1.25/MTCN

Investor A gets all 1.2 million MTCN, B gets all 0.5 million MTCN and C gets only 0.3 million of the requested 1million, all at the distribution price of €1.25/MTCN which also becomes the next day’s minimum bid price.

ICO Day 2 (D2)

2 million MTCN are available on the second day, as per set rules. This time, the successful minimum bid price from D1 is €D2, which in the case of the aforementioned example is €1.25/MTCN. Bidders offer bids greater than €D2, along with the quantity of MTCN they’d like to purchase. At the end of D2, only the highest bids totalling 2m MTCN will count as winning bids, and the lowest bid price of the winning bids, becomes the minimum bid price for Day 3. And so on and so forth.

Rationale

Multiven believes that its ICO Dutch auction model will encourage investors’ participation by providing them with more freedom, in a fairer manner.

Some of the benefits of Multiven’s ICO model include:

  • Year-long guaranteed liquidity for the Multiven Open Marketplace (MOM);
  • Democratises participation for all;
  • Complete transparency and fairness as daily price that is set via the consensus of investors.

The finalised participation process will be made available on https://multiven.io shortly before the ICO starts, so stay tuned.

Thanks for reading!

Fernando Sanchez

www.multiven.io — The world’s first blockchain-based marketplace for the global €4 Trillion Information Technology products and services Industry.