XUC (Exchange Union)
In an auction-based ICO, tokens are sold through an auction process where participants place bids to acquire tokens. The price of the tokens is determined by the bidding process, with bids starting at a minimum price set by the project team.
Participants in the auction-based ICO can submit bids for the tokens using cryptocurrency or fiat currency. The auction typically runs for a specified period of time, during which participants can place bids or revise their existing bids. At the end of the auction, the tokens are allocated to the participants who placed the highest bids.
Auction-based ICOs are seen as a fairer way to distribute tokens, as the price is determined by market demand rather than a fixed rate set by the project team. This can help to prevent token dumping after the ICO is completed, as participants have already paid a price they are willing to support.
Overall, auction-based ICOs provide a transparent and market-driven way to distribute tokens, which can be beneficial for both the project team and token buyers.
