Tai Zen: So it’s a notable exchange, right? It’s been around.
Leon Fu: So Augur hasn’t launched yet, there’s no Augur. But what they’ve done as they’ve gotten a bunch of people that they trust to hand over their private keys to the exchange. And of course they have to trust them that they didn’t make copies of their private keys, it’s a group of people where it’s not really going to be an open market because it’s not really where Augurs freely traded.
But it’s a bunch of people who hand it over the private keys to the exchange and then the exchange is issuing tokens with those private keys. And then they’re making a market in Augur because you can deposit the coins and then you can start placing bids and asks and they’re letting their trading Augur even though it hasn’t launched yet.
It’s a proxy, it’s a proxy coin for Augur. That’s what someone did with the Ethereum too, it’s was called Ether coin. Somebody set up, said we bought a million Ethers and we have the private keys, we’re going to issue another token to represent a proxy of those and then when Ethereum launches, you can redeem mark your token for the million Ethers that we’re holding.
That wasn’t a scam, they actually did that, so we kind of could see where Ethereum was trading in the months leading up to the launch. So the same thing is happening to Augur, I thought to trade at like $10, you can go to Gatecoin and see, it’s around $10.
Tai Zen: So that means that more than likely when they start trading Augurs that we can expect if it’s going to run roughly around that price point.
Leon Fu: We know the typical deal is kind of it’s going to pump and then it’s going to dump. But right now, I think there were 11 million reputation tokens or something like that. But $10 that gives it a market value of $110 million.
And they bought in at a 5.3 million valuation, so that’s a 20 times return right there, that’s indicated potential. I’m not saying that’s really because the volume is really low, it trades maybe only 10 or 20 Bitcoins per day, so that’s not a lot of volumes to say that’s a legit price.
But it’s an indication that this thing’s going to open at over $100 million. That’s 20 times of your money if you bought the presale.
Tai Zen: Let me shoot this video and then I’ll get back with you.
Leon Fu: Alright, I’ll catch you later.