3 ms·

That's not how order books work. New tokens don't get listed at some pre-determined price. People who buy up tokens in pre-sales are allowed to move their token

by px43 4y ago

That's not how order books work. New tokens don't get listed at some pre-determined price. People who buy up tokens in pre-sales are allowed to move their tokens onto exchanges, and list them for sale for whatever price they want. Obviously they're looking to sell them for more than they got them, but more often than not, the general public doesn't care enough to buy them at higher than the pre-sale price. There's significant risk involved when participating in pre-sales. It's not like it's just a free money free for all. Those are the ones you don't hear about because no one is in the office bragging about how much money they just lost.

SparkyMcUnicorn 4y ago
He said DeFi, and buying at a specific price is how a lot of presales work there.
- px43 4y ago
  Exchange listings, which is the topic of the article, and is mentioned by the person I responded to, are specifically a centralized finance thing (CeFi). Every DeFi exchange I know of allows anyone to list any token at any time. That's part of what makes them "decentralized", so the concept of knowing ahead of time when a token is going to be listed doesn't make any sense in the DeFi context. Pre-Sales are often conducted via a DeFi style ICO, which might list tokens at a certain price governed by some fancy mechanics (getting cheaper, or more expensive, over an n-week ICO window or something, dutch auctions, etc), and then eventually the tokens go up for sale on centralized exchanges, which is the "insider" event being discussed by the article, and presumably, the person I replied to.
stepanhruda 4y ago
If they add liquidity at Uniswap, they do indeed get listed at a pre-determined price. The initial liquidity is added at a 50/50 ratio with an existing highly liquid asset, so the number of coins the initial liquidity providers have directly sets the price - of course the immediate dump/demand quickly swings the price.

by px43 4y ago

SparkyMcUnicorn 4y ago

He said DeFi, and buying at a specific price is how a lot of presales work there.

px43 4y ago
Exchange listings, which is the topic of the article, and is mentioned by the person I responded to, are specifically a centralized finance thing (CeFi). Every DeFi exchange I know of allows anyone to list any token at any time. That's part of what makes them "decentralized", so the concept of knowing ahead of time when a token is going to be listed doesn't make any sense in the DeFi context. Pre-Sales are often conducted via a DeFi style ICO, which might list tokens at a certain price governed by some fancy mechanics (getting cheaper, or more expensive, over an n-week ICO window or something, dutch auctions, etc), and then eventually the tokens go up for sale on centralized exchanges, which is the "insider" event being discussed by the article, and presumably, the person I replied to.

stepanhruda 4y ago

If they add liquidity at Uniswap, they do indeed get listed at a pre-determined price. The initial liquidity is added at a 50/50 ratio with an existing highly liquid asset, so the number of coins the initial liquidity providers have directly sets the price - of course the immediate dump/demand quickly swings the price.