$WLD I know it's hard to see our currency fall, because we become desperate not knowing how far it will go, but stay calm, as long as we don't sell at a loss, we don't actually lose, it will have to recover... Also, I see that a large part of the market is down 🥺
$TURBO The auction mode on Coinbase is used when listing a new cryptocurrency to establish its initial price before open trading begins. It is a way to discover the price transparently and fairly based on the supply and demand of market participants.
How does it work?
1. Start of the auction: • When a new coin is launched on Coinbase, the exchange does not immediately allow regular trading. Instead, an auction period is opened. • During this time, users can place buy and sell orders, but these do not execute immediately. 2. Order collection: • Coinbase collects these orders and displays them in the order book so that users have an idea of supply and demand. • This helps determine the initial market price. 3. Determination of the initial price: • Once Coinbase has enough information about demand (buy orders) and supply (sell orders), it sets an initial price. • This initial price becomes the opening price when the asset begins to trade regularly. 4. Open trading: • After the auction, the coin moves to real-time trading mode, where orders are executed like any other asset.
Why is it important?
• Fair price discovery: It prevents the initial price from being set arbitrarily, allowing the market to determine its value. • Reduction of initial volatility: It helps reduce large price fluctuations at the start of trading, as the initial price is based on real market data.
The auction mode is common in exchanges for new coins or assets because it provides a more controlled and transparent approach to launching a new market.