It is no doubt that IEO is taking over from ICO and the new market entrant is proving to be worth every cent. Initial Exchange Offerings (IEO) if not being over-hyped, it is set to make Initial coin Offering (ICO) take a back seat and eventually exit the crypto fundraising scene.
BitTorrent tokens fetched $7.2million in approximately 18 munities and Fintch.AI raising $6million in 22 seconds using IEO running on the Binance ecosystem. This is something that no ICO has ever been able to achieve. So what sets the two crypto fundraiser options apart?
ICOs vs. IEO
ICOs are still being used as ways of raising funds to fund crypto projects but the popularity is in the decline. This has ushered in a new breed of raising funds for similar projects. However, many ICOs turned out to be scams and Initial Exchange Offerings are stealing the lime light.
IEO entails the agreement between a crypto projects and an exchange for initial placement. Simply put, IEO is a cryptocurrency fundraiser being run by an exchange. This is a shift from traditional private sale. With IEO, all the fundraising functions are run by the exchange.
Benefits of IEO
Using an exchange for your IEO means you are riding on the platforms’ subscriber base. It is easy to convert these into potential investors. Any trusted exchange can easily convert adorers and adopters and that is what new crypto project needs; global visibility and fast adoption.
Using exchanges for fundraising, the investors already has the exchange trust. Secondly, the token or coin is guaranteed to get listed on the same platform giving it a head start against others. Exchanges that deal in crypto to fiat have a better chance to woo investors from the fiat economy.
The exchange that provides IEO services gains from the additional visibility and increased influx of new investors. New users means more deposits and the exchange portfolio heads north.
Which Exchanges offer IEO Services?
The list of exchanges offering the IEO services keeps growing by the day and at press time; Binance, EXMO, OKcoin and GBE are offering the services. Others set to join the list are Bittrex and Huobi through Huobi Prime.
A lot of realignment is anticipated in the industry and hopefully IEOs will bring to an end the ICO scam instances that the industry has witnessed for the last 10years.
