XM
Bybit
Binance
Robinhood
Webull
IC Markets
Pepperstone
OKX
Vantage
VT Markets
BingX
Gate.io
Kucoin
MEXC
Exness
Bitget
Coin REP is the name of the coin belonging to the Augur project. This project is promoted as the most accessible decentralized betting platform with the lowest cost. More details about what Augur Coin is, what the REP coin is, the operating mechanism of Augur, and important facts about the REP token that investors must know will be covered by tradafx in this article.
1. WHAT IS AUGUR?
According to the project’s whitepaper, Augur is a decentralized oracle platform designed to predict and bet on outcomes of events across various markets. On this platform, any user holding REP coins can create a market and allow other users to place bets either in favor or against the outcome. Augur believes that blockchain technology can be used to harness the intelligence and knowledge of the crowd, helping them predict future events.
The Augur Coin project is built on the Ethereum blockchain. Typically, market predictions and analyses are carried out by organizations or groups of experts. However, with Augur, anyone has this capability. The name Augur comes from a group of Roman experts whose job was to study the movement of birds and then predict whether an action might affect Rome.
1.1. History of Augur and the REP Coin
The Augur Coin REP platform was founded in 2014, with a whitepaper released as an outline of the founders’ vision for the world’s first open-source decentralized prediction platform. The first public sale of REP tokens took place in September 2015, raising over 5 million dollars. The first test version of the Augur Coin REP platform was released on the Ethereum testnet.
It wasn’t until 2018 that Augur’s mainnet officially went live. In July 2020, Augur v2 was officially released. This second version of the Augur protocol included several significant changes, notably the use of the stablecoin DAI for transactions, and an improved interface that was more user-friendly and accessible. Augur v2 was considered a major advancement in the world of decentralized applications (dApps).
1.2. The Development Team of REP Augur Coin
The REP Augur Coin project was developed by the Forecast Foundation, founded in 2014 by developer Jack Peterson, computer scientist Joey Krug, and Jeremy Gardner. Among them, Joey and Jack were the primary figures responsible for founding and technically developing the Augur platform.
Both have many years of experience in the blockchain and crypto field. Joey Krug entered the crypto market in 2010 when he was only 22 years old. After completing the back-end development of the Augur Coin REP project, Joey also joined Pantera Capital — one of the top crypto hedge funds in the U.S. — as Co-Chief Investment Officer.
In addition, the Augur Coin REP project is also advised by Ron Bernstein, the founder of the Intrade exchange, and by someone well known to investors in the cryptocurrency world — Vitalik Buterin, the founder of the Ethereum blockchain network.
2. SPECIAL FEATURES OF THE AUGUR PROJECT
Prediction markets also involve forecasting future events, but they are not the same as trading platforms with futures contract features. On the Augur REP Coin platform, users can create and trade “shares” representing the value of the outcome they predict. Most prediction or betting platforms are centralized, so the creation of a decentralized platform like Augur makes it unique.
This also means that anyone can create their own future market without oversight from Augur. With smart contracts, all transactions are automatically settled without interference or waiting time from third parties.
3. HOW THE AUGUR PLATFORM WORKS
Markets on the Augur REP coin platform follow a process consisting of four stages:
-
Market creation
-
Trading
-
Reporting
-
Settlement
As mentioned above, anyone in the REP Augur protocol can create their own market based on real-world events and allow others to participate in making predictions.
Trading begins immediately after the market is created. Users of the Augur Coin REP protocol are free to participate in any market. After the event in the market actually occurs, the bets and predictions made by participants will be reported, and positions will be closed. Once the results are determined, the platform will automatically carry out the settlement.
3.1. Market Creation
The market creator on the Augur REP coin platform sets the event end time and designs a report to deliver the event outcome. However, the market creator is not the only one who can control the market they created; if any problems or fraud are detected, other participants in the Augur protocol can also report against the creator.
Then, the creator selects the event sources to be used for reporting to determine the event’s outcome on the Augur platform. The event sources can be taken from news sites or specific information websites. The cost paid to the market creator is funded by traders paying for the contract or, simply put, for their betting positions.
Finally, the market creator issues two types of bonds:
-
Validity Bond: Paid in ETH. If the result returned by the bettor is invalid, the ETH will be transferred to the market creator on Augur REP Coin. The value of this bond depends on the number of invalid results returned.
-
No-show Bond: Divided into two types: no-show gas bond (paid in ETH) and no-show REP bond (paid in Augur REP tokens). If within 3 days after the event ends the designated report returns the result, the fee will be paid to the creator. Otherwise, it will be paid to the reporter from the public reporting group who first reports the correct market result.
3.2. Market Trading
After market creation, participants on the Augur REP coin platform can start predicting event outcomes by trading “shares” representing the results they predict.
Example: A market is created with two possible outcomes, X and Y. A player named Anna is willing to pay 0.7 ETH per share for outcome X, and another player named Josh pays 0.3 ETH per share for outcome Y. The Augur protocol will automatically match these orders and collect a total of 1 ETH from the two players. It then creates a pool of shares and distributes them to the players. At that point, players are free to use those shares to place bets.
The Augur Coin REP platform also has an order book for every market created on the platform.
3.3. Reporting
The reporting process in the Augur REP coin protocol begins after the real-world event has occurred. The result is determined by Augur’s oracle, which includes reporters who submit the actual outcome of the event.
Anyone holding REP tokens can participate in this oracle to report results. Those who report accurately according to the rules will be rewarded, while those who report incorrect or inappropriate results may be penalized. Both rewards and penalties are paid in REP tokens.
Below is the reporting process flowchart in the Augur REP coin protocol:
3.4. Settlement
During the event, participants can liquidate their positions to other users on the Augur Coin REP platform by selling the “shares” they hold to receive another currency or by settling the contract with the market after the winning result is determined.
The Augur Coin protocol charges a one-time fee when participants settle their market contracts. There are two fees involved in this settlement process: the market creator fee and the reporting fee. The fee amount is calculated proportionally to the user’s payout.
4. WHAT IS COIN REP?
Coin REP is the native token of the Augur platform. The REP token cannot be mined like Bitcoin but was initially issued with a fixed supply of 11 million ERC20 tokens. Unlike some other projects, REP coin holders must participate in the process of maintaining and securing the network; otherwise, they may be penalized by losing a certain amount of REP tokens.
Cryptocurrency REP coin is built into the network, and the REP token is the sole currency used for reporting event outcomes.
4.1. Basic Information about REP Coin
Similar to other coin project articles, traders and investors can easily find information about REP coin on REP CoinMarketCap or REP Coingecko.
-
Symbol: REP
-
Blockchain: Ethereum
-
Token Standard: ERC20
-
Token Type: Utility
-
REP Coin Price Today: $7.17
-
REP Coin Address: 0x1985365e9f78359a9B6AD760e32412f4a445E862
-
REP Coin Market Cap: $79,009,577.89
-
Total Supply: 11,000,000 REP tokens
-
Circulating Supply: 11,000,000 REP tokens
REP coin is available on most major cryptocurrency exchanges such as Binance, Gate.io, KuCoin, etc. It is supported by popular cryptocurrency wallets including cold wallets like Ledger, and hot wallets such as Trust Wallet, Metamask, and others.
4.2. REP Token Allocation
The fixed total supply of 11,000,000 REP tokens is allocated as follows:
-
Token Sale: 80%
-
Project Founders: 16%
-
Forecast Foundation: 4%
The REP coin token sale event took place from mid-August to early October 2015, with a sale price of $0.602 per REP coin, raising nearly 5.3 million USD.
5. SHOULD YOU BUY REP COIN?
REP coin can be considered one of the oldest tokens developed and built on the Ethereum blockchain. In reality, the gambling market is valued at tens of billions of dollars. Augur is not just a decentralized betting platform, but it has quickly expanded beyond that by allowing users to place bets on any event occurring in the real-world market.
Currently, the Augur REP coin project website has not updated information related to its 2022 roadmap, so there is no accurate information about the project’s development plan for this year.
Above is the price chart of REP coin from TradingView for the second half of last year and the beginning of this year. It is easy to see that the peak price REP coin once reached was over $60 per token last year. The price of the REP token largely depends on the number of participants placing bets. As mentioned earlier, REP coin is the only currency accepted for betting. An increase in participants combined with a limited supply will be key factors that can drive the REP token price higher.
6. SUMMARY
The Augur project has opened a new and very different path for the decentralized finance (DeFi) market. With the above information, including details on how the Augur REP coin protocol works and essential knowledge about the REP coin, Tradafx hopes to have provided enough support for investors who are still uncertain about investing in the REP token.
- t.me/finance_solutes
- Website: https://finance-solutes.com
- Hotline: +1 929 5636 439 ( Hotline )
- 26 Broadway, Suite 934, New York, 10004, US
