- IEO was completed in 11 seconds
- The company used a slightly different IEO model
- The token will have a low correlation with bitcoin (BTC)
Ampleforth (AMPL) has raised $4.9 million in its Initial Exchange Offering (IEO) on Bitfinex and Ethfinex’s IEO platform, Tokinex in just 11 seconds. The IEO was the first one to take place on the Hong Kong-based cryptocurrency exchange’s platform.
Bitfinex and Ethfinex Will Share a Listing Time
According to a press release by the company on June 13, 2019, the IEO that was run by Tokinex sold off 10 percent of Ampleforth’s entire token supply that will become available to its initial investors sometime in the next few days. After the distribution, Bitfinex and Ethfinex will share a listing time to trade AMPL on their exchanges, commenting after the successful sale; Ampleforth Chief Executive Officer Evan Kuo said he was very encouraged by the sale. Kuo stated:
“The success of this raise is a strong indicator of the market needing more diversified assets other than what currently exists.”
Model Is Slightly Different
An IEO has become the alternative to Initial Coin Offering (ICO) where a centralized cryptocurrency exchange becomes responsible for vetting the token project and investors before it eventually conducts the initial sale of the token. Amples followed a model that differs slightly from other IEOs by referring their token as a synthetic commodity. As the price of Amples fluctuates, the number of Amples a trader holds is adjusted to meet the price target, stabilizing the asset. Ten percent of Amples supply was dedicated to the Tokinex sale.
Match Exchange Rate Fluctuations
According to the press release, Ampleforth is a token that is balanced around an equilibrium price target even though it doesn’t qualify to be a stablecoin, at least initially.
The cryptocurrency is designed to periodically add or subtract tokens from an investor’s holdings in order to match exchange rate fluctuations, meaning that it has a correspondingly fluctuating market capitalization. This also means that this token is expected to have a low correlation with bitcoin (BTC) compared with other crypto assets, the company says.
The Tokinex IEO platform was launched in May and Bitfinex and Ethfinex users can take part in Initial Exchange Offerings using funds from their respective exchange wallets. The platform also uses a Know Your Customer (KYC) process powered by the Blockpass mobile App for sales and IEOs on the platform.