Aevo Exchange Introduces Pre-Market Trading for Upcoming Token Airdrop
Derivatives exchange Aevo is offering pre-market trading for its upcoming token, which is set to be airdropped on March 13. This move is aimed at increasing awareness of the platform and generating interest among traders. Aevo operates on its Layer 2 network on Ethereum and has gained traction for its pre-market trading of tokens in recent months.
While pre-market trading is not uncommon in the crypto space, what makes this case unique is that Aevo is offering its own token for pre-market trading. This has sparked some skepticism and criticism within the community.
Pre-Market Trading Allows Speculation on Future Token Price
Pre-market trading enables traders to speculate on the future price of a token before it becomes live. In the case of Aevo’s upcoming token, airdrop recipients can participate in pre-market trading to lock in prices and potentially benefit from price increases once the token is officially launched.
Aevo’s co-founder Julian Koh has assured traders that the exchange has implemented internal controls to ensure fairness. Employees are barred from trading the token in the pre-launch market, and no information about the listing price has been shared with investors or insiders.
A Small Community Allocation Sparks Criticism
The distribution of Aevo’s token has come under criticism for being overly restricted. While early crypto airdrops typically gave away a significant portion of their supply (upwards of 60%), recent airdrops have reduced this allocation to around 7%. Aevo’s allocation is even smaller, with less than 5% being distributed to the community.
In response to these criticisms, Aevo’s community manager defended the allocation on Discord. They argued that the effective size of the airdrop depends on the token’s price. They also justified giving more tokens to Binance than the community, stating that the exposure would be beneficial for the token’s price.
Aevo declined to comment on these messages and the criticism surrounding its token allocation.
Future Plans for Aevo
Beyond the airdrop, Aevo has plans to open up its Layer 2 network to other applications. The exchange employs a Layer 2 optimistic rollup created using the Conduit rollup platform and intends to use Celestia for data availability, ensuring low transaction fees. This will allow other protocols to build on Aevo’s network and create an ecosystem around the exchange.
In addition, Aevo is looking to expand into yield offerings. In the first quarter of this year, it plans to launch yield strategies that will enable users to generate returns by putting their crypto in various setups.
Ribbon Finance’s Evolution into Aevo
Aevo was originally part of DeFi project Ribbon Finance and was developed as an extension of it. Ribbon Finance gained recognition in 2022 as a notable DeFi protocol, particularly in the decentralized options market. Aevo focuses on scaling decentralized options through its own Layer 2 app-chain and has expanded its offerings to include perpetuals.
Hot Take: Aevo Introduces Pre-Market Trading for Token Airdrop 🚀
Aevo’s decision to offer pre-market trading for its upcoming token airdrop has generated both interest and skepticism within the crypto community. While pre-market trading is not new, it is uncommon for an exchange to list pre-market trading for its own token.
The small allocation of tokens for the community has also sparked criticism, with some questioning the fairness of the distribution. However, Aevo’s community manager has defended the allocation, emphasizing that the size of the airdrop depends on the token’s price.
Looking ahead, Aevo plans to expand its Layer 2 network and open it up to other applications. The exchange also has ambitions to venture into yield offerings, providing users with opportunities to generate returns on their crypto holdings.
Overall, Aevo’s introduction of pre-market trading and upcoming token airdrop demonstrate its efforts to grow its platform and engage with the crypto community.
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