It is widely known that the reason ICO’s are able to attract significant user interest is because of time value. In other words users buy at presale or ICO point in anticipation of price appreciation as the token is listed on exchanges. Thus, the ICO mechanism is a perfect example of deflationary expectations in the crypto-currency market. After all, if tokens do not appreciate in price, what would be the reason to buy them early.
As stated earlier, a token that will truly reflect all monetary functions, must overtime, lose its purchasing power. Put simply, it becomes cheaper, and not more expensive.
How can FIREBIRD attract investments if its tokens do not offer price appreciation? Since, once launched, the main source of value in the system will be a serial number of the user's main account, we have developed a new mechanism of the initial offer – Open Account Auction (hereinafter, the Auction).
The Auction is essentially a process whereby for a limited amount of time, early users get allocated a certain amount of wallets as dictated by the chronological order of their verification and the size of their bids. Bid sizes are not limited. Bids can be increased at any time and through an unlimited number of attempts during the Auction’s duration. At the end of the Auction, the system will sort all participants according to the size of their investment and the serial number of their registration.
Each “lot” in the Auction represents a wallet with a unique serial number. Thereafter, each lot’s estimate implies the estimated value of the aggregate FBD tokens which would be distributed to that particular wallet immediately post the completion of the Auction.
Planned starting price of the FIREBIRD token as it lists on the first exchange - $1.
Below is a table displaying token distribution at the end of the auction as driven by serial wallet numbers and the number of participants:
|Sequence number of the participant|
|Number of participants||Balance on the account at the time of auction completion|
The table above shows that being early reduces financial risk, as early wallets will receive high token distribution even in a case of a meaningful shortfall in the number of participants.
3 Scenarios are taken under consideration:
Regardless of the final outcome. The Auction should be considered normal if the distribution of bids is both above and below the estimate.