Launching Secondary Auctions on CoinList

Scott Keto
Dec 31, 2019 · 2 min read

For investors and new token issuers

The launch of a new token in the public crypto markets can be an expensive and opaque proposition. For issuers, there are market maker fees, listing fees, and sometimes additional capital to artificially drive price support. For investors, the lack of transparency and lack of genuine liquidity can lead to extreme volatility, price manipulation, and heavy losses.

CoinList is addressing these issues by introducing Secondary Auctions.

Our secondary auctions are run on a periodic basis to concentrate liquidity into smaller windows allowing for a more fair and transparent pricing mechanism without market makers. During each auction, buyers and sellers are able to post orders at a range of prices. Successful orders are prioritized by the best price rather than the time the order was placed. No individual is favored by the speed of their order. The price that would result in the highest volume becomes the final settlement price for all participants. Successful participants always receive the same or better price than their original order.

Issuers get a fair and transparent process to establish price discovery, and investors get pre-exchange access to emerging tokens.

Launching auctions with Kadena

We are launching Secondary Auctions with Kadena (KDA).

During each auction, eligible buyers and sellers are able to post orders for a specified KDA and USDC (e.g. Buy 2,000 KDA @ 1 USDC per KDA or Sell 2,000 KDA @ 1 USDC per KDA). The settlement price is determined by the price that would result in the highest volume among buyers and sellers.

All participants receive the same final settlement price and successful participants will always receive the same or better price than their original order.

For example:

  1. You place a buy order of 2,000 KDA @ 1 USDC per KDA for an estimated total cost of 2,000 USDC
  2. The auction settles at 0.90 USDC per KDA
  3. You buy 2,000 KDA at 0.90 USDC per KDA for a total cost of 1,800 USDC

KDA auctions are live now.

We’re currently running 1–2 KDA auctions per week. USDC deposits and withdrawals are available now. KDA withdrawals will be processed after January 15 to sync with Kadena’s roll-out schedule.

Placing orders is free. A 1% fee is assessed on executed transactions only.

Register for CoinList Secondary Auctions


KDA may not be offered, sold, or resold in the United States of America or to residents of the US, Canada, China or any other barred jurisdictions. Please see https://coinlist.co/legal for more information.

All activities on the CoinList website are governed by our Terms of Service.

Investing in cryptocurrencies, tokens and token-based securities is highly risky and may lead to total loss of investment. Use of the CoinList website is subject to certain risks, including but not limited to those listed here.

Scott Keto

Written by

Director of Strategy @ CoinList; fmr. Portfolio Manager @ Athena Capital Advisors; MIT Sloan + Bard College

CoinList

CoinList

Where the best digital assets companies manage their token sales, airdrops, and online hackathons

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