Token

How to participate in the Swash public sale

The Swash team is excited to announce that the private sale has officially closed, with a total of $7MM being raised in an oversubscribed…

Swash

Oct 21, 2021 — 11 min read

The Swash team is excited to announce that the private sale has officially closed, with a total of $7MM being raised in an oversubscribed round. The raise included leading venture capitalists and angels, including KuCoin, Gate.io, Outlier Ventures, and Streamr, with 60 others from 25 countries in total, showing keen enthusiasm and belief in the Swash mission.

The Swash public sale will begin on October 29 for all whitelisted participants. It will close one day later (October 30), and auction winners will be able to claim their $SWASH tokens immediately after the auction ends.

Keep reading for more on why we chose a fair batch auction model, how they work, and how to participate in the $SWASH public sale on Oct 29.

Learn about the $SWASH token.

🔸Key dates:

Start time — 29 Oct at 00:00:01 UTC
End time — 30 Oct at 23:59:59 UTC
Token distribution — 31 Oct at 00:15:00 UTC

>> All whitelisted participants can access the auction using this link:

https://gnosis-auction.eth.link/#/auction?auctionId=68&chainId=1#topAnchor

⛔️ NOTE: Make sure you only refer to information shared on Swash official channels, listed below:

swashapp.io
swashapp.io/blog
medium.com/swashapp
twitter.com/swashapp
t.me/swashapp_group
t.me/swashapp
linkedin.com/company/swashapp

The team will not contact you first on any channel. Beware of scams. If in doubt, support is available 24/7 in the Swash Telegram channel.

How to participate (steps & video)

Be smart: watch this video first!

1. When the public sale is live, join the auction

Make sure your wallet is funded with the amount you want to spend in USDT plus some ETH for gas fees. The official link to the auction will be updated here on October 29. The Swash auction will also be listed here as one of the ‘Featured Auctions’ on the day the auction goes live.

2. Connect your wallet

Now, you need to connect your wallet. You must make sure that this wallet is the same one that you registered during the whitelisting and KYC process with Fractal. You cannot use another wallet or your Swash wallet.

Once connected, go to the ‘Featured Auctions’ section and find the Swash auction. Click on it to be taken to the auction dashboard.

3. Place your bid

In the dashboard, you can find everything you need to know to participate in the public sale.

When you’re ready to make your bid, you should first unlock your wallet. Click ‘Unlock’ in the ‘Place Order’ section, confirm it and be patient as it processes.

Add the amount you want to spend in USDT in the ‘Amount’ section of the ‘Place Order’ section.

Then, in the ‘Max Bidding Price’ section, you need to specify what you think one $SWASH token is worth. The minimum you can bid is 0.09 USDT per token. That’s because the minimum sell price for the auction is 0.09 USDT.

❗NOTE: Do not make irrational bids! Be smart and informed by reading this article and watching the video above.

When you place the order, confirm, and scroll down to view your order history.

You can cancel your bid during the first 12 hours of the auction. After this point, all bids are final.

4. Wait for the auction to end

Once the auction is over, you need to allow some time for the clearing price to be determined. Once final, anyone who made a bid below that clearing price will not receive any $SWASH tokens and their unspent funds will be available to claim back.

For the winners of the auction, the $SWASH token will then be allocated to them and made available to claim at the clearing price.

Why choose a fair batch auction?

Fair price discovery based on supply/demand principles
With batch auctions, the auctioneer (Swash) sets the total amount of tokens sold at the auction and the minimum bidding price for each token (0.09 USDT per token). However, you (the bidder) have total freedom to decide how much you want to spend (in USDT) and how much you think one $SWASH is worth.

The fair batch auction model allows the community to determine the price of the token, making it a fair, decentralised model for token price discovery.

No front running and manipulation
The only factors that influence the outcome are the price you want to pay per token and the amount you are going to spend during the auction. Every bidder starts in the same position and gets a token allocation based on the clearing price that the aggregated bidders deemed fair during the auction. All winners will receive their $SWASH tokens at the same clearing price.

Unspent tokens claimed back if not selected
If your bid is below the final clearing price at the end of the auction, your funds will be available to claim immediately. In some cases, partial refunds will happen because bidders will not receive the full amount of tokens they expected due to higher clearing prices.

Claim tokens immediately after the auction
At the end of the auction, tokens are allocated to the winners. Tokens can be claimed immediately after the auction has finished. If you didn’t win, you can claim your unspent funds to be sent to the wallet you used to participate in the auction.Here is a comprehensive overview of Batch Auction models compared to other common auction structures; Dutch Auctions and English Auctions:

✅ Understanding the benefits

After months of research, the Swash team chose to conduct its IDO on Gnosis Auction due to their fair batch auction model. As a community-driven project, Swash’s priority is to ensure the community are satisfied and have an active role in determining the value of $SWASH.

This auction mechanism allows for fair distribution rather than FOMO, determined by the community of bidders.

Here are the 4 key benefits:

Fair pricing: All winners will receive their tokens at the same clearing price, determined by the community and available to claim once the auction finishes.
Front running resistant: Bots are unable to extract value by purchasing tokens early and selling at a higher price later, contrary to AMM solutions.
Full control over participation price: Bidders are free to limit the price at which they are willing to buy.
User-friendly bidding experience: Bidders do not have to rush or time their bid for the best price. Instead, they are free to place their bid at any time while the auction is live.

🚫 Avoiding the Risks

People can mistake the auction mechanisms and may feel inclined to bid high. There is little incentive to do this as all winners will receive their $SWASH tokens at the same final clearing price determined by the community of bidders.

Typical methods of auction manipulation include making very high bids and then cancelling late in the auction process in an attempt to discourage other bidders. Then the cancellation will reduce the clearing price, allowing manipulators to secure a lower price than they otherwise would have paid.

This risk is mitigated by the ability to cancel bids being curtailed after a period of time in the auction, and by requiring bidders to commit funds to the auction smart contract before their bid is valid.

The fair batch auction model requires bidders to collectively determine the price they deem the $SWASH token is worth according to the quality of the project. This is the clearing price at the end of the auction. All auction winners will receive their tokens at the same clearing price, regardless of the amount they committed.

How batch auctions work

Essentially, in a batch auction, the tokens are allocated first to the highest price bidders until there are no tokens left based on the total amount sold in the auction and the final clearing price.

Make sure to bid in an informed, calm way. Do not rush or make reckless bids, you have time!

Here’s a simple overview:

Important: Dos and Don’ts

Do not bid irrationally: It does not make sense to bid a much higher amount than the current price indicates. This is irrational and can negatively affect the outcome of the auction for all. Regardless of the bid size, all winners will receive their $SWASH token at the same final clearing price. Instead, be sure to take your time and make informed decisions when place a bid and consider the current price carefully.
Follow the latest current price: When you place a bid, the page will refresh. However, if you do not, the page does not refresh automatically to show you the latest current price to avoid creating high traffic on the platform.
Keep an eye on the dotted line: This is a clear risk indicator and changes dynamically as bids are made. For a better chance of being one of the winners of the auction, keep an eye on this line and, if your bidding price is equal to or lower than this line, you need to pay attention and decide for yourself whether you will withdraw your order and place a new bid after adjusting the price.
Do not rush. You can bid at any time while the auction is live. The auction does not settle the token at the price of your order (unless your bid happens to be the same as the final clearing price). Instead, it takes the lowest price of the valid orders as the final clearing price. Make sure you fully understand the parameters of the auction and be careful and considered when making your bid.

Next steps

Once the whitelisting process is complete, approved applicants will be notified through email on the next steps required for the public sale by October 28. These people will be able to access the auction on October 29 and place their bids to determine the price and be some of the first $SWASH token holders.

Updates will be shared on the Swash blog, newsletter, and social media channels.

❓FAQs

When does the Swash Whitelisting close?
The Whitelisting closes on October 25 or until 20,000 places are filled.

Do I need to conduct any kind of KYC verification?
Yes. Our KYC partner for the IDO is Fractal. Read more about whitelisting here.

When is the Swash IDO happening?
The Swash IDO will start on October 29 at 00:00:01 UTC and close on October 30 at 23:59:59 UTC.

If I win, when will my tokens be available to claim?
You will receive them on 31 Oct at 00:15:00 UTC.

How many tokens will be sold at the Swash IDO?
Swash’s IDO will make 50M tokens available for sale (5% of the total supply).

What’s the minimum price on the Swash IDO?
0.09 USDT per token.

What’s the maximum bid on the Swash IDO?
There is no maximum bid. You are free to bid the price you deem fair. Instead, you state a specific amount of USDT you are prepared to spend on $SWASH during the auction. You will not pay more than this and may pay less per token, depending on the final auction clearing price.

How can I be sure that whales will not manipulate the auction?
The fair batch auction model requires bidders to collectively determine the price they deem the $SWASH token is worth according to the quality of the project. This is the clearing price at the end of the auction. All auction winners will receive their tokens at the same clearing price, regardless of the amount they put in.

The principal means of manipulating the auction is to make very high bids and then cancel them later on in the auction process. The high apparent clearing price will discourage other bidders, then the cancellation will reduce the clearing price, allowing manipulators to secure a lower price than they otherwise would have paid.

What about gas wars near the end of the auction? Why not wait until the very end to bid?
The final clearing price will be clearer towards the end of the auction, and it may seem better to wait and see. However, the risk is that the network becomes congested near the end of the auction and your bid may not be recognised.

Does the minimum price bid guarantee an allocation?
No. If your bid price is below the final clearing price, you will not receive any tokens. The final clearing price will be known at the end of the auction, while the minimum price bid may not be sufficient to guarantee a token allocation. However, you should only bid the price you think $SWASH token is worth.

How does the auction sale model work?
The last price at which tokens can be allocated is called the final clearing price. The amount of tokens each person receives depends on the pecking order of their bid price for each token and the total amounts of funds allocated in proportion to the final clearing price.

Why this model?
Swash chose this model based on two main reasons: supply/demand principles and manipulation-resistance. Swash is community-driven and believes in allowing the community to determine the price of the Swash token in a decentralised manner. Batch auctions are front running resistant, allow for full control over participation price, and with a friendly bidding experience as bidders can place their bid at any time during the auction and cancel within the first 12 hours.

What happens if my bid is too low?
If your bid is below the final clearing price, you will not receive any tokens. However, Gnosis will allow you to claim back the total amount of unspent funds that you pledged at the beginning of the auction once the auction has finished. If you only receive a partial allocation of tokens, the remaining unspent funds will be available to claim.

Can I make multiple bids?
Yes. You are welcome to set multiple bids at different prices and manage your budget to test your chance to win. However, transaction fees can be high so it makes sense to make the fewest number of bids to suit your strategy.

Can I cancel my bid?
The auction is live for 48 hours. You can cancel your bid at any time during the first 12 hours of the auction. After this point, all bids are final.

How do I learn more about the $SWASH token?
You can read all about the Swash token here.

How long is vesting for private investors?
Vesting for private investors is, on average, 455 days. Pre-seed investors have a 6-month cliff and 2 years vesting. Our private investors are long-term holders and will also be providing liquidity.

Is $SWASH on CoinMarketCap or Coingecko?
Yes, here are the links to CoinMarketCap and Coingecko.

How is my token allocation calculated?
If you are one of the auction winners after making a bid higher than or equal to the auction clearing price, the calculation for the number of tokens you receive is as follows:

Amount of USDT committed / auction clearing price = your tokens

Example:

3000 USDT committed / 0.09 clearing price = 33,333 $SWASH tokens

Those who made a bid equal to the final clearing price will likely be able to claim some tokens and some of their unspent funds once the auction is final.

Are there any risks with this auction model?
As with any sale, there are some risks involved. You should only bid the price you think the $SWASH token is worth. As with all token generation events, please be aware of the possible volatility after the public sale, when the token launches in exchanges and is available for the general public. Conduct your own research and make an educated decision before you participate.

Disclaimer: This article provides information for educational purposes only. It does not provide financial advice. Do your own research before making any financial decisions.

Useful links for further reading:

$SWASH token [link]
Gnosis Auction [link]
Gnosis Auction Documentation [link]
Introducing Gnosis Auction [link]
Become an Auction Specialist at Gnosis Auction in Five Minutes [link]
How Gnosis Batch Auction Works [link]

About Swash

Swash is an ecosystem of tools and services that enable people, businesses, and developers to unlock the latent value of data by pooling, securely sharing, and monetising its value.

People share their data to earn while retaining their privacy. Businesses access high-quality, zero-party data in a sustainable and compliant way. Developers set up and build systems within a collaborative development framework with ease.

Swash is reimagining data ownership by enabling all actors of the data economy to earn, access, build and collaborate in a liquid digital ecosystem for data.

Originally published at https://swashapp.io on October 21, 2021.