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It stops your time being wasted by people making silly

offers, which will happen no doubt. I think there will be a feature of max concurrent offers won't there?

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In reality the most interesting information will be the offer that has the most value. But that's not why we must prevent others from making lower offers in case the one who bid the highest withdraws. And even if there are 40 offers it won't change much for the holder in fact

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