With a view to ensuring fairness and transparency, Algorand has conducted its token sale in the format of a Dutch Auction raising over $60 million.
Algorand managed to raise over $60 million in a token sale of its native Algo token. The token sale was held on the Coinlist platform. The entire process was organized in accordance with a Dutch Auction mechanism. This mechanism provides market participants with a possibility to set a uniform price per Algo token. The value of the tokens was established at the level of $2.40.
Dutch Auction Model
As the Algorand Foundation takes fairness and transparency as the core priorities, a Dutch auction is just an appropriate model to support these values. In the framework of this model, the token price is not determined by the company itself. The factors that may influence the pricing policy are supply and demand.