Zama Announces Public Token Auction
Zama has announced a public token auction scheduled from January 21-24, 2026, utilizing its homomorphic encryption technology, with bids in USDT through a verified wallet.
The auction marks Zama's innovative approach to token sales, potentially impacting blockchain industry practices with its encryption-based, Dutch auction method, drawing attention from investors and market analysts.
Zama Offers 8% of Tokens Starting at $55 Million Valuation
Zama's auction will offer 880,000,000 ZAMA tokens, approximately 8% of the total supply, starting with a $55 million fully diluted valuation floor. Participants need to register and verify their identity, submit bids through a single, verified EVM-compatible wallet, and specify their maximum price per token. KuCoin and CoinList facilitate this process by allowing transactions between $0.005 and $5.00.
The auction's main innovation is its use of fully homomorphic encryption, ensuring privacy and secure computations on encrypted data, presenting an advancement in safe blockchain processes. Zama's CEO, Rand Hindi, continues to lead projects addressing privacy issues in crypto through advanced cryptography.
Market participants and stakeholders, while enthusiastic, await the auction's results. The crypto community acknowledges that Zama's entry could bolster trends in privacy-focused technologies within the blockchain sector, offering a glimpse into future proprietary technologies' potential. "Zama's innovative approach could set a new standard for privacy in blockchain auctions," notes one industry observer. However, significant public commentary and statements from key crypto figures or industry leaders are absent.
Market Speculations and Technology Implications
Zama's auction is one of the first to utilize fully homomorphic encryption in a public token sale, potentially setting a precedent for future blockchain auctions.
According to CoinMarketCap, Zama tokens (ZAMA) are valued at $0.06, with a fully diluted market cap of approximately $699.53 million. Despite a 5.68% increase in the last 24 hours, Zama has experienced notable declines over the past months. The lack of circulating supply, combined with zero 24-hour trading volume, points to potential volatility in the immediate future.
The Coincu research team highlights that Zama's event may drive more interest in privacy and encryption technologies within cryptocurrencies, aligning with regulatory stances that favor secure user privacy measures. As the application of cryptographic advances becomes more mainstream, the industry may see further adoption of similar technologies to enhance security and privacy controls across blockchain networks.