Clout Auction Explanation


On Tuesday the 15th of June we will be running an auction for $CLOUT, the native token of the BitClout network on the Blockchain Exchange. Today, customers can deposit $CLOUT to their Exchange account to prepare for trading. We will be running an auction for this token on our Exchange at 4pm (GMT) on Tuesday the 15th of June, our trading pairs will then go live on Wednesday the 16th of June at 4pm (GMT). 

How will this auction work?

For the start of this auction we will have $CLOUT trading pairs in a halted state. While halted, we will accept new orders and build the book. No matching will occur while the symbol is halted. We will calculate an auction opening price and display the price and imbalance. The opening price is the price point where the greatest number of shares will execute. If there is more than one price that will have the same execution size, then we will pick the price that is closest to the previous last sale. The imbalance is the size leftover that can trade at the opening price after all shares have executed at the opening price.

If buy shares are left over the imbalance will be positive and if sell shares are left over then the imbalance will be negative. There will be a freeze period before a symbol is reopened, this will make it more difficult to manipulate the opening price. During the freeze, users will not be allowed to cancel orders and can only add orders that decrease the imbalance.  While a symbol is halted we will not accept Market, AOL, IOC or FOK orders. When a symbol goes into a halt state, all resting AOL orders will be cancelled.

What is Bitclout?

What is BitClout? BitClout is the first social network built from the ground up as its own custom blockchain. Each creator on the platform has a creator token that can be bought and sold by followers, making it the first crypto social network. In fact, you can follow the handle here.

Today, a post submitted to a traditional social media platform belongs to a corporation, rather than the creator who posted it. In contrast, BitClout is a fully open-source, decentralized project with no company behind it — it’s just coins and code. This means every creator has a direct relationship with their followers, which unlocks new ways to engage and monetize that aren’t based on ads.

We’re excited to provide exclusive access to buy and sell $CLOUT to users, not just because it’s a popular crypto project but because it also demonstrates that architects, developers, and builders can create consumer products with crypto protocols.

While there is a healthy trading economy for tokens like Bitcoin, we’re still in the early innings when it comes to use cases that non-crypto folks can truly get excited about. We’re excited to support more assets for our customers, collaborate with BitClout developers and community, and look forward to listing other similar crypto projects in the future.

NOTE: Ventures is an investor in BitClout.

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