What Is an IEO (Initial Exchange Offering)?

 In Market News
bitcoin
Bitcoin (BTC)
Rank: 1
$
9,500.00
Price (BTC)
Ƀ1.00000000
Marketcap
$
169 B
Volume
$
30 B
24h Change
0.17%
Total Supply
21,000,000.00 BTC

ethereum
Ethereum (ETH)
Rank: 2
$
212.13
Price (BTC)
Ƀ0.02232947
Marketcap
$
23 B
Volume
$
10 B
24h Change
5.49%
Total Supply
0.00 ETH

ripple
XRP (XRP)
Rank: 3
$
0.310409
Price (BTC)
Ƀ0.00003267
Marketcap
$
13 B
Volume
$
3 B
24h Change
2.48%
Total Supply
100,000,000,000.00 XRP

litecoin
Litecoin (LTC)
Rank: 4
$
90.98
Price (BTC)
Ƀ0.00957705
Marketcap
$
6 B
Volume
$
5 B
24h Change
8.87%
Total Supply
84,000,000.00 LTC

What Is an IEO (Initial Exchange Offering)?

In 2017, Initial Coin Offerings (ICO) burst onto the crypto scene and led the market on a historic bull run. During that time, it was common to see gains of over 1000%. In fact, profits came so steadily that most investors stopped calculating their gains in percentages, and instead opted to simply say 5x, 10x, or if they were really lucky, 30x.

ICOs were enabled by the Ethereum network, a smart contract blockchain platform that allows users to create and issue their own cryptocurrency tokens and decentralized applications. The outcome of the ICO movement was nothing short of revolutionary: Startups could finally move beyond traditional VC fund investing and raise money in a peer to peer fashion.

The model didn’t come without problems, however. Investors were often duped into funding projects that they hadn’t adequately researched, leading to scams, lost money, and disillusionment. Despite the ICO craze pushing the cryptocurrency market to new heights, it wasn’t able to sustain its support for long. Eventually, all of the money raised in ETH and BTC via ICOs left the market, and the house of cards came tumbling down.

As the market has matured, ICOs have taken on a new and more responsible form – the Initial Exchange Offering (IEO).

start-trading

How IEOs Are Reshaping the Market

What sets IEOs apart from ICOs? In the first place, IEOs are not sold directly to investors, as ICOs were. The exchange in Initial Exchange Offering literally means that it’s a cryptocurrency exchange offering the tokens for sale. That buffer places a greater degree of responsibility on the exchange, and less on the investor, which creates a better paradigm for retail buyers.

Cryptocurrency exchanges have created platforms for the development and release of IEO projects. Binance Launchpad, Huobi Prime, and KuCoin Spotlight are a few of the IEO movement’s leading platforms. Before launching an IEO, exchanges like Binance thoroughly vet the project’s goals, its team and tech, and makes sure that the project is of a high caliber. While being far from a guarantee of success, getting an exchange’s seal of approval goes a long way in assuaging investor fears about scam projects.

The big boost to investor confidence being provided by crypto exchanges, IEO platforms, and IEOs themselves, are pushing the cryptocurrency market back toward the moon. Big gains have been posted by leading IEO projects like Matic, Celer, Harmony, Fetch, TOP Network, MultiVAC, and others. As investors watch those projects succeed, the incentive to participate in future IEOs becomes greater, creating a cash flow cycle that keeps value within the market.

How to Participate in IEOs

To join in on an IEO, you’ll need to keep a close eye on platforms like Binance Launchpad. Binance IEOs have given the best returns, and have generally been the most outstanding projects thus far.

Getting in on a Binance Launchpad IEO will require a few things from you. First, you’ll need to keep Binance’s native BNB token in your wallet – the more BNB you hold, the better your chances of getting into an IEO. The reason is that Binance uses a lottery system which is decided at random. However, you can increase your odds by getting more lottery tickets. More lottery tickets can be had by upping your BNB holdings.

As a minimum, you’ll need 50 BNB to receive one ticket. If you hold 500 BNB or more, you’ll receive 5 tickets, greatly increasing your chances of getting in.

Whether you choose to participate in IEOs or not, make sure to keep watching them – they just may be future blue-chip crypto projects.

What Is an IEO (Initial Exchange Offering)?
Recent Posts

Leave a Comment

Start typing and press Enter to search