AIO (Auction based Initial Offering) is a type of crypto fundraising based on fair pricing, a know-how developed by the Kick Ecosystem team. Unlike ICO, IEO, IDO and other forms of fundraising, the price of a token, offered here for sale, is not fixed, but is formed by the users themselves during the auction. The greater demand for a token is, the higher its price, and vice versa. Companies have no direct influence on the value of the token, what makes pre-sales of the token at a 50-80% discount pointless. Thus, the price of the token is formed by the market itself and by the users participating in the auctions, who take into account the importance and relevance of the products offered by the company. So, the authors do not declare the price of their token, which, after entering the secondary market, can be collapsed by those who received early allocations with huge discounts: this kind of risk is excluded.
The author of the token sale indicates how many tokens he or she wants to sell, and for how many days. For example, these are 900,000 tokens that will be on sale within 30 days. In this case, 30,000 tokens will be put up for sale every day. Backers bid on what price and how many tokens they want to buy. Those with higher price will buy tokens. Those whose price is lower than others will not buy tokens. Orders, been collected in the order book during the trading day, are executed at the end of it.
Tokens that were not sold the previous day are withdrawn from the sale and remain on the ecosystem balance, and can be further burnt or frozen. Thus, all users see the demand, or, if there is no demand, they can buy tokens at a lower price. If they are lucky, they may buy most of the exposed volume, or all of the tokens, within a trading day. As a result, the price is formed by real demand and, when tokens enter the secondary market on the KickEX exchange, the price will already be formed and should not fall, as it usually happens in the case of ICOs, IEOs and other outdated forms of token sales.
KickICO is a crowdfunding platform that supports AIO fundraising, but the auction sale takes place on both the KickICO platform and campaign tokens are automatically approved for listing on the KickEX exchange. As a result, both communities - platforms and exchanges - participate in the auction. This significantly increases the organic demand for traded tokens, as it reaches the audiences of both platforms and both communities. After the successful completion of the campaign and all the necessary checks, the company's tokens become available for trading on the KickEX exchange, receiving an automatic listing there.
Tokens can be bought for USDT, in the future it will be a semi-stable KUSD token, which is an internal token equal to 1 USD. In case of participation in token sales for fiat or other cryptocurrencies, there is an automatic conversion to USDT at the rate with which the user agrees, and then to KUSD.
1. Registration on the KickICO platform or on the KickEX cryptocurrency exchange
After registration, it is necessary to pass the verification of identity (KYC). Only users who have passed identity verification (KYC) are allowed to participate in token sales on the platform. The KYC procedure is simple and fast in 99% of cases, but it is recommended to complete it in advance if you plan to participate in the AIO.
2. How to apply for token purchase
Before proceeding, be sure to read the general terms and conditions of the AIO project and the token purchase agreement.
Study the existing bids of other users (if they are any) to understand the current pricing and winning price and be able to buy the desired number of tokens for sale.
Specify the number of tokens you want to purchase and the price of the token in USDT.
Confirm your bid and it will appear in the order book. Check out where your order is in relation to the orders of other users, and whether tokens will be bought for your bet under the current situation in the order book.
Control the situation - after you send your bid to the order book, others will appear in it, so you may be outstripped or moved by higher rates down so much that you may not be in the winning zone, and all tokens will be redeemed by participants who have offered a higher price.
3. AIO token sale procedure
The sale of tokens is carried out at the end of the trading day, immediately. The orders with the highest price are executed first. Bids with the lowest price are executed last.
If all the offered tokens of one trading day were redeemed by participants who offered a higher price, then other participants whose rates are lower will not get anything. In this case, unexecuted orders will be cancelled and users’ funds will be returned to their wallets in the Kick Ecosystem.
Tokens that were not sold during the trading day are withdrawn from the sale and remain on the balance of the Ecosystem, and can be further burnt or frozen.
Creation of a campaign on the KickICO platform is free of charge. After the successful completion of the campaign, the platform charges the authors a commission of 10%, which includes the payment for the listing of the token on the KickEX exchange. For buyers, bidding is fully free of charge.
Each project to be represented within a campaign on the KickICO platform passes KYC / AML procedure first by providing basic documents to prove identity of the authors themselves and the company. Companies that have not passed this procedure will not be allowed to host the campaign. This is done in order to avoid the placement of fraud projects and to maximize the protection of token sale participants.