Today, let’s explore a fascinating project involving Web3’s decentralized auction service. The project is called AUCTION and its token is called Bounce. Notably, its token value has increased tenfold since the beginning of the year, rising from $4 to currently $40. Its market value has also reached US$250 million, and its ranking has risen to around 230. This time, we’ll take a closer look at why the project has been able to achieve such significant growth.
Overview: Advances in decentralized auction services
From the first traditional auctions in 500 BC to today’s digital transformation, this ancient way of buying and selling assets has continued to evolve, striving to achieve real improvements in efficiency, transparency, and accessibility. This evolution solves three core problems.
The first is the centralized nature of traditional auctions, where a single auction company or broker controls the entire auction process, which can lead to lack of transparency and fairness issues.
The second is the cost to sellers. In traditional auctions, sellers usually need to pay high commissions to auction houses or brokers. In addition, the complex and sometimes daunting bidding process may discourage buyers who are not familiar with the process, as these processes often follow specific rules, conventions and professional terms.
Finally, when traditional auctions are held in a physical location, they are often restricted to a specific geographic location. This limitation can narrow the pool of potential bidders and buyers, limiting the diversity of participants.
Application of blockchain technology in auction field
Decentralized technology offers great potential to solve many problems in traditional auctions, opening up the possibility of a new type of auction: one that uses blockchain technology to ensure transparency, trustlessness, security, and immutable records. In Web3 auctions, smart contracts play a key role. They are self-executing programs where the agreement between buyers and sellers is written in tamper-proof code. In stark contrast to traditional auctions, participants can bid on assets using cryptocurrencies. This means that anyone with an internet connection and a digital wallet can participate, regardless of their location or financial situation.
Bounce: The pioneer of Web3 auctions
Bounce, as a fully decentralized auction platform, uses blockchain technology to provide Web3 users with a more transparent, efficient and accessible auction, bidding and purchasing process. Since its launch in September 2020, Bounce has become one of the most popular decentralized auction platforms in the Web3 ecosystem, especially among buyers and sellers in the DeFi and NFT fields.
Unlike traditional centralized auction platforms, Bounce is non-custodial, which means that users always maintain full control over their funds and assets. Thanks to the support of blockchain, the Bounce platform uses smart contracts instead of manual management to manage auctions and fund allocation, ensuring a transparent and secure auction process.
Bounce's Development Track
Founding and early development (2020):
Bounce V1 (2020): In 2020, Bounce launched its first official version, Bounce V1. This version introduced a blockchain-based auction mechanism, allowing users to purchase cryptocurrencies and digital assets through auctions. Bounce V1 gained attention from the crypto community and established a certain user base.
Bounce 2nd Edition and IDO (2021):
After the initial success of Bounce V1, Bounce launched its second version, Bounce V2, in 2021. This version adds the function of initial decentralized exchange (IDO), allowing project teams to issue tokens and crowdfund on the Bounce platform. This feature provides a fair financing channel for emerging projects and gives investors the opportunity to participate in projects at an early stage.
Bounce Version 3 and Innovative Features (2023):
In February 2023, Bounce launched its third version, Bounce V3, which significantly updated the original auction model. Auction as a Service (AaaS) was introduced, adding an innovative retraction function to fixed swap auctions, allowing participants to withdraw their bids at any time during the auction. In addition, Bounce also plans to launch a new auction mechanism that allows participants to earn revenue during the auction process, as well as launch a physical collectibles market that enables projects to set up their own brand stores on the Bounce platform to sell physical collectibles including clothing, accessories, luxury goods, etc. Bounce began to focus on BTC ecosystem projects in November 2023, providing incubation and auction support, and witnessed projects like MultiBit (MUBI) and BitStable (BSSB) successfully conduct IDO on Bounce.
Product and service categories:
Token and NFT Auctions: Bounce offers 10 different types of auctions on over 40 blockchains, running in a permissionless environment that enables anyone to create and participate in diverse auction campaigns.
Physical Collectibles Auctions: Bounce allows tangible collectibles to be converted into NFTs and subsequently auctioned on the blockchain, bridging the gap between physical and digital assets.
Ad Space Auctions: Bounce has created a unique marketplace for advertisers and publishers to buy and sell ad space through a decentralized auction.
ACTUION's current auction types
1Fixed Price Auction:
A fixed price auction is one where the price of the auction item is predetermined and agreed upon by the auctioneer and the participants. This type of auction is often used when the auctioneer has a specific value target for the asset being sold. It operates on a first-come, first-served basis.
2On-chain English auction: In an English auction, the auctioneer starts with a low price and gradually raises the price until the bidder is willing to pay the highest amount. The auction usually has a fixed end time, when the person with the highest bid wins the auction.
3 Variant English Auction: The final transaction price is shared with bidders, and the auctioneer benefits from increasing the final price.
4 Dutch Auction: A Dutch auction (also called a descending price auction) refers to an auction method in which the auctioneer starts at a very high price and gradually lowers the price until someone bids.
5 A sealed bid auction, also known as a blind auction, is a process where all bidders submit their bids simultaneously, in sealed envelopes, without knowing the bids of other participants. The highest bid wins the auction.
6. Bounce Random Selection Auction, instead of the highest bid winning the auction, the winner is randomly determined like a lottery. Therefore, it is also called a "lottery auction". This type of auction is usually used when the item being sold is very popular and there are many bidders willing to pay a high price.
7. On-chain order book auctions are a type of auction conducted on a blockchain platform in which buyers and sellers place orders to buy or sell a specific asset, and these orders are matched based on specific criteria.
8. Playable actuation: Bounce introduces a new auction mechanism where allocations are distributed based on gameplay, and participants receive allocations based on ranking scores. These games are all single-player, one-shot games.
It is the auctioneer's responsibility to decide which games they want to play and establish the rules for allocations. There are two options for getting allocations: 1) get an equal share by game play, or 2) get different allocation sizes based on game ranking and score.
9. RWA Asset Auctions: Owners can create auctions for digital representations of their physical collectibles on the blockchain network. These auctions can be conducted securely and transparently using smart contracts, which automatically execute the auction rules.
The winners of the auction can redeem the physical collectibles by destroying the corresponding NFTs (non-fungible tokens), which represent the ownership of the assets. This ensures that only the legitimate owners of the NFTs can redeem the physical collectibles associated with them.
10. Advertising auction is an innovation that combines blockchain with traditional advertising technology.
There are two ad auction mechanisms:
Peer-to-peer (P2P) model, sellers sell directly to buyers.
Sellers pledge ad space into a pool, forming an ad pool. Buyers bid against the pool, and the successful buyer’s ad will be displayed in the scrolling ad banner.
AUCTION Team
ROBMAY CEO Rob is a venture capital entrepreneur and angel investor in over 45 AI and blockchain companies. Previously, he served as CEO and co-founder of Backupify (acquired by Datto). He is the author of "Insider on AI".
BYRONGALBRAITH, Chief Data Scientist, Byron holds a PhD in Cognition and Neural Systems from Boston University and an MS in Bioinformatics from Marquette University.
Chief Architect JONKLEIN is responsible for engineering team planning from initial stages to large scale. For many years he was Director of Engineering at Drync and directed the Ads Product Team at Tapjoy. He has a Master's degree in Complex Adaptive Systems from Chalmers University.
ANTHONY HABAYEB COO. Most recently, Anthony directed the strategy and growth of Propel Marketing. Now Thrivehive, which grew from $6 million to $50 million. He has taken positions at Monster and Yahoo! as a partner and revenue wizard. He started his career and livelihood after working as a strategy employee at Accenture.
Henry Wagner Blockchain Engineer Henry Bilai works as a senior software engineer at Akamai2022 coir network Bian Xiao Technology Company, working hard to build a device management system and develop the company's import skills. He holds a bachelor's degree from the University of Austria and is a graduate student in distributed systems at the University of Connecticut.
Analysis of the reasons for this growth
Bounce Finance announced a new Launchpad project on December 11 - Bdid (BDID), a DID service platform located on BTC Layer 2. Given that Bounce Finance’s first Bitcoin ecological Launchpad project, BitStable Finance (BSSB), has achieved a significant increase of more than 45 times, the market is full of expectations for BDID.
BTC Layer 2's native DID service platform GoDID acts as a decentralized identity (DID) market aggregator, providing services for ENS, Space ID, and Bitcoin Ordinals DID. The ENS module supports the entire life cycle, including search, registration, transactions, and management.
In this Launchpad model, users can obtain BDID by staking Auction, which is the same as most centralized launchpad models.
Start time: December 15th 21:00 to December 17th 21:00 (UTC+8)
Token distribution: 200,000,000 (40% of total)
Allocation price: 1 BDID = 0.00009375 AUCTION (approximately equal to 0.0017 USDT, corresponding to a total project market value of 850,000 US dollars)
Token Economy
The project was actually launched in 2020. The total number of tokens is 10,000,000. The current supply is 7,640,627, the circulation is 6,500,033, and the current price is 40 US dollars. The peak price was $71.0046 (2021-04-12). From this point of view, it has recovered half, which is still good. We can see that there are not many projects that can recover half at present, and Pie is one of them. Even Ethereum has not recovered half yet, but we have not seen the token distribution of the current project.
To sum up, this project should be the leader in the auction field, at least I haven’t seen any others. It is very common in the NFT market. We have seen British auctions and Dutch auctions, but there is a problem that the project’s tokens are not related to the products. This is a problem, but the project owner has obviously turned itself into a financial company and invested in many projects, such as the previous stablecoin BSSB on Bitcoin. This wave of surge is also due to the BDID project. We will release another project later to look at these two projects. After looking at these two projects, we will give a comprehensive evaluation of this project.