# kaal:claim:4015908-035

**Claim.** An auction mechanism for fair launch tokens avoids pricing tokens below their underlying market value, which in turn helps remedy the problems that derive from large whale token holders who can later manipulate the market.

**Type.** mechanism  **Support.** argued

**Holds when.**

- public auction of tokens at launch

**Source quote.**

> An auction mechanism for fair launch tokens ensures avoids that tokens are priced cheaper than the underlying market value of the token. This, in turn, helps remedy the problems that derive from large whales token holders that can manipulate the market in the

**From.** Wulf A. Kaal, *Fair Token Launch* (2022), IV.3 Auction, page 17

**Cite as.** Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908

**Verify.** sha256 of source PDF `e0925afde0c42a16cd5310983789fae3eb3d1f121e2954a72afa64191d00fe37` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202022%20-%20Fair%20Token%20Launch.pdf

**Topics.** economics

**Keywords.** auction, underpricing, whales, market-manipulation, fair-launch

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