Gemini Exchange to Launch Ether Auctionbr>
New York-based digital currency exchange Gemini is launching a daily 4:00 p.m. Eastern Time ether (ETH) auction starting on July 28. The announcement follows the launch of a bitcoin auction last year.
Gemini said that the mechanics of the ether auction will be same as the bitcoin auction.
Daily auctions are universally implemented by traditional asset exchanges like the New York Stock Exchange, Nasdaq, and Bats. They increase price discovery and transparency, and they reduce costs across the board by making sure that buyers and sellers don’t miss each other during the trading day, according to the company.
Gemini co-founder and president Cameron Winklevoss said the company is confident that its auction will bring users the benefits of over-the-counter (OTC) trading without the overhead, hassle, and lack of transparency.
Customers can enter Auction-Only Market and Auction-Only Limit Orders to buy or to sell beginning well before the auction time.
Beginning 10 minutes before the auction time, indicative auction prices are broadcast via both Germini’s market data API and their website front-end. A new indicative auction price is calculated every minute until the auction time, based on the order book at that time, and every 15 seconds during the final minute.