Today, major crypto exchange Binance tested its new initial exchange offering (IEO) format with the sale of AC Milan Fan Token (ACM) built on the Chiliz blockchain.
The sale, hard-capped at USD 1 million worth of BNB coins, was oversubscribed by 1,484x, the exchange said. 27,414 participants committed BNB 5.7m (USD 1.57bn) in order to obtain 205,128 ACM at USD 4.875 price per token, it added. In the first two hours of trading on the exchange, the price jumped to around USD 20.
The offering, which sold 10% of the total ACM token supply used a relatively new, four-stage subscription model that maximized BNB commitment by users and ensured “a fairer distribution of tokens.” Besides, Binance users were able to acquire ACM tokens with BNB with a 25% discount.
The AC Milan Fan Token is a utility token meant to give fans of this major Italian football club a tokenized share of influence of club decisions via the Socios.com application. It is supposed to serve as a membership key for exclusive rewards, discounts, and more. AMC is issued on the Chiliz Chain, Proof-of-Authority consensus sidechain of Ethereum (ETH).
Here’s how the new Binance Launchpad format worked:
- The first stage called the BNB Holding Calculation Period, calculated a user’s average amount of BNB tokens held during a 7-day pre-sale period, from February 17 to February 24. It was used to determine the amount of eligible BNB tokens one can allocate towards the token sale.
- The second stage, the Subscription Period lasted three hours, during which users could have committed their eligible BNB tokens to the token sale.
- The third stage, the Calculation Period, lasted one hour, during which the exchange’s staff calculated the proportional amount of ACM tokens belonging to a single user adjusted by the sales’ hard cap, which was set at USD 5,000 worth of BNB per user. According to the announcement, only 31 participants…
