Initial Exchange Offerings (IEOs) Move Fast, But Why?
The initial exchange offerings (IEOs) are currently the most popular fundraising trend in the cryptocurrency industry, and more than 150% in 2019. According to the initial exchange offerings offerings
Binance was the first major exchange, to join the IEO wave, this year. A handful of IEOs has been done.
In January, the BitTorrent (BTT) token, or the digital currency, raising $ 7 million. San Francisco-based BitTorrent is a software company specializing in peer-to-peer file-sharing. It has been shown that it has not been the case for the best projects. Binance announced on the Internet, go ahead and go live on Launchpad.
IEOs have been highly visible. Positively, IEOs have produced large returns to-date. Negatively, to quote Jeff Dorman at Arca, “Many argue that you’re sincerely accepted, and are unrestricted, they’re acting as a broker / dealer. Thus, US investors can't participate. ”
However, despite the fact that many global participants have been investing, they were investing in these offerings.
It is a great mechanism for fund raising up to US $ 10 million. A larger user base, often existing exchange users.
After the conclusion of the project, it will be open to you almost immediately on the exchange. It is necessary to negotiate with each of them.
If you’re a project, you can save it up.
Speculators shouldn’t be hoping for good results. Because of the fact that the parties are curated by other parties.
Terms are also spelt out more transparently and they need not worry too much about others getting a better price than them — except the private sale or seed round investors of course. Some users employ automation to help them get their hands on some allocation.
IEO provides an increase in projects that want to get out there for a raise. This provides a great additional revenue stream for listing fees and value added services.
Should users know that they are offering a great IEO, there is incentive for them to be more active users and thus increasing their site engagement. Trading volumes for their exchange and whichever token they require to be used for purchase will increase as well. As many exchange have their own exchange tokens, this will be beneficial to exchange token holders.
As long as there are retail and investor demand, IEOs will continue. We will probably see both an oversaturation of exchanges and projects soon. In the world of water, it can be filtered out. In the case of a new project, it’s possible to complete the project.
If you are a landscape or fades away.
To date, very little has been produced from the ICO wave. To make matters worse, current market capitalizations suggest that over 80% of those funds have diminished.
And now Coinbase is considering launching an initial exchange offering (IEO) platform in Asia. This would allow it to launch and broker “a proprietary exchange token” and other tokens in the region, Coindesk…