IEO LAUNCHPADS that are worthy of INVESTORS’ ATTENTION
Initial Exchange Offering is carried out on the platform of a crypto currency exchange. Unlike Initial Coin Offering (ICO), IEO is managed by the exchange on behalf of a startup that is trying to raise funds with its recently released tokens. Since tokens are sold on the exchange platform, tokens issuers must pay a listing fee along with the percentage of tokens sold during IEO. In turn, startup’s tokens are sold on the exchange platforms, and their coins are added to the exchange list after the end of the sale. A crypto currency exchange receives a percentage of sold tokens but, in turn, helps the issuer of tokens with marketing operations.
IEO participants don’t send their contributions to the smart contract as in case with ICO. Instead, they must create an account on the exchange platform where IEO is held. Once done, they deposit funds into their exchange wallets with the help of coins and use these funds to purchase startup’s tokens.
A growing number of crypto currency exchanges began to conduct IEOs. One of the first in the line was Binance, with its IEO Binance Launchpad platform. Although the first IEOs were conducted back in 2017, and the Binance was not the first “who coined the term IEO”, the world largest exchange by trading volume is regarded as the first big mover and trendsetter. The main sensation of the end of February was the success of the Fetch.AI project, which, in the framework of IEO on the Binance Exchange, collected $6 million in 22 seconds. Previously an unprecedented excitement allowed selling the entire amount of BitTorrent tokens worth $ 7.2 million in 18 minutes using the same method. Other successful cases include Bread, Gifto, Celer, and one upcoming called Maric.
Watching the success of Binance Launchpad, other well-known exchanges announced the launch of their own IEO platforms.
HOW TO TELL WHICH EXCHANGES OFFER THE BEST RETURNS
ROI is important with IEOs just like with any other investment. But how to know what kind of return exchanges have provided investors in the past? CryptoRank.io makes this data available. Below, for example, you can see the average current returns and average all-time-high returns on a variety of IEO platforms over the past year.
Binance has announced an update on Binance Launchpad lottery system. The holders of Binance Coin (BNB) now have the possibility of being rewarded with up to 25 lottery tickets. The main criterion for getting more tickets is the same – average BNB holdings over the specified period on a user’s account. The main idea behind is pretty straightforward – the more you hold, the higher your odds to end up with the victory are.
2. Huobi Prime
In March 2019 Huobi launched and IEO platform called Huobi Prime. Huobi was actually the next major exchange after Binance which managed to perform successful IEO with the TOP Network project. They completed their first selective token sale event in a matter of seconds, with token prices rose by 250% immediately afterwards. Huobi Prime positions itself as a Direct Premium Offering (DPO) platform that provides the users with a variety of advantages.
They position itself as a global leader of blockchain technology and the most trusted digital asset exchange, and they have every right to do so. One of the leading exchanges by trade volume, OKEx, in March announced its own token sale platform – OK Jumpsmart. So far there isn’t any public information about upcoming projects, but we can be sure that they are looking closely for new prospective projects to work with.
Probit is not one of the major exchanges by trade volume but still has some amazing plans with respect to its IEO platform. It has already hosted over 25 IEO’s in past couple months after carrying out its first IEO on in February 2019. Probit has shown some amazing results like the Linix IEO that was hosted on Probit’s launchpad was sold out in mere five seconds. Other successful projects are Spin Protocol, CharS, Wegen, Steemhunt etc.
Established in 2018 Coineal Launchpad has been winning its niche too. It is quite a big exchange with almost $700M daily trading volume. Like other leading exchanges, they have also jumped in the race for and IEO launchpad. Coinreal has already completed IEO’s for IPW Token, Levolution, and Kizuna Global Token. A Vietnam-based blockchain project REDFOX Labs announced that they Coineal seems to be as an ideal platform for its token launch due to the strong regional footprint in Asia and a record of successful IEOs.
Initial Exchange Offering can be considered as an evolution of the ICO. IEO is a crowd funding strategy that relies on an exchange or multiple exchanges, which make the smart contract, event planning, and some marketing campaigns.
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In 2018, ICOs raised nearly $8 billion. But as many know too well, the ICO wave has since come crashing down. ICOs now raise about 58 times less than they did just a little more than one year ago.