The end of 2021 brought some much anticipated updates to The eXchange. These latest changes make discovering and bidding more efficient as the number of available assets on The eXchange continue to grow.
We'll go into greater detail on the updates below, but here is a short list of what's new:
- Any new listings will be added to the eXchange daily at 1:00 PM EST/10:00 AM PST
- Making a counteroffer will no longer reject the offer to which it is countering
- Each party in a counteroffer chain may only have one offer available at a time
Scheduled Posting of Listings
A common feedback point we heard from investors was frustration with the unpredictability of when new assets would become available on the exchange. In a world of predictable events – the market opens at 9:30am, earnings reports happen quarterly, etc. – we understand how this was unusual.
Previously, new listings arrived to the eXchange on an ad-hoc basis. As an investor, this meant the best time to check for new listings was unclear. You could miss out on acquiring a catalog simply because it went live at a time you weren’t paying attention.
Therefore, we'll now post new listings to The eXchange at 1:00 PM EST/10:00 AM PST, provided there are new listings to post.
You'll still receive notifications if you've subscribed to listing alerts, but you can always expect new listings to be live at this time, if there are new listings available.
Another point of feedback we'd heard frequently was confusion around the counteroffer feature.
We introduced counteroffers in early 2021 to give listing owners the ability to engage with buyers beyond simply accepting or rejecting their offer. A listing owner can make a counteroffer to any offer made on their listing, beginning a counteroffer chain with that potential buyer.
As we've watched adoption of counteroffers, a few insights became clear.
First, counteroffers allow for much more efficient price discovery than the old system of accept/reject. Also, counteroffers give greater insight to potential buyers on a listing owner's motivation to sell, and/or where their price-point may lie.
However, some gaps developed for listing owners with counteroffers. We've addressed these with a minor change to their behavior.
Previously, when a potential buyer made an initial offer, that offer would remain open for its entire duration (24 hours). A listing owner making a counter to the initial offer would not reject it. However, making a counteroffer to an existing counteroffer would reject the offer to which it was countering.
This created a tradeoff between potentially finding the market clearing price for a listing, and removing the ability to accept the current open counteroffer.
To make the behavior of counteroffers consistent, and promote the most efficient path to finding a market clearing price, we've changed the behavior of counteroffers to follow these rules:
- Counteroffers will expire 24 hours after creation
- Making a counteroffer will withdraw the last offer you made
- Making a counteroffer will not reject the offer/counteroffer to which it is countering
Put simply, you'll have the ability to accept any offer you make a counter to, provided there is still time remaining on that offer.
To illustrate this change, here is a potential scenario.
- David, a buyer, makes an initial offer of $10,000
- Elyse, the listing owner, makes a counteroffer of $13,000
- David makes a counteroffer of $11,000 – his initial offer of $10,000 withdraws.
- Elyse makes another counteroffer for $12,000 – her other counter of $13,000 withdraws.
- David accepts Elyse's $12,000 counter and a deal is made.
We'll be introducing new features to improve the experience on the eXchange soon. Many of these features are born out of feedback directly from you, the investors on Royalty Exchange.