For those who don't know, DefiBids, is the recently launched smart-contract powered DeFi auction platform, that allows users to participate in LUB (lowest unique bid) format auctions, in attempt to win packages of popular cryptocurrency tokens. And for a brief overview of the DefiBids platform you can read my introductory post published HERE yesterday.
And as mentioned in the aforementioned post, while LUB auctions do rely to a certain degree on luck, the reason operators of LUB auction platforms are exempt from the necessity of obtaining a gambling-license, is due to the strategy element involved in LUB auctions - which, to be fair, is considerable. And there are numerous posts and articles to be found littering the internet discussing possible strategies, tips, and tricks, through which to increase a players chance of winning that big prize. The most simple of which we'll discuss below...
The $0.01 Bid Strategy
OK, so while bidding the lowest possible amount in a lowest unique bid format auction might not sound like much of a strategy. as it turns out, arguably, it's a pretty good one. Data pulled from some of the earliest completed auctions shows that bidding $0.01 had a success rate of nearly 40%.
Why? Psychological reasons presumably. If the majority assume that others have already likely bid a guess of $0.01 and avoid it, the one who takes a chance and makes that play, wins out in most instances. Whether this will remain a winning strategy over time as players change strategies remains to be seen, the percentage of wins attributed to $0.01 bid wins may rise and fall, and then rise and fall again as bidders adapt. But Human psychology to a more-or-lesser degree is a constant. And for now at least the data speaks for itself - and shows that doing the "predictable", might just be unpredictable enough to secure a win and bring home a juicy bag of crypto for the victor in many instances.
Fancy trying your luck and/or flexing your strategical prowess in attempt to win some fat bags of crypto over at DefiBids. SIGN UP HERE.
