Before we discuss this topic, it is very important for us to understand the basic terms first.
What is and IEO?
IEO stands for Initial Exchange Offering. It is like an ICO run through an exchange. In ICO, instead of shares, utility crypto tokens are sold at a discount in return of cryptocurrencies to fund the project. Here the tokens are sold via a crypto exchange. It is more reliable than an ICO as it is regulated and listed. Instead of an ICO where only two parties are involved, IEO involves three parties, i.e. Projects – Exchanges – Investors.
Why IEOsare currently trending?
- Trustworthy: As it is listed on crypto exchanges, the chance of fraud is very slim. The exchange’s reputation is on the line, so they study each project very carefully before listing.
- Open to all exchange users: It is open to all the investors on the exchange as there are no eligibility criteria.
- Security: The exchange makes sure there are no frauds like hacking and theft. It is more secure than ICO, as it is regulated.
- Regulation: The exchange conduct KYC for its users to make sure it is genuine. The issuing company does not need to conduct its own regulation, as it is done by exchanges.
- Token liquidity: After the IEO ends the investor can easily sell their tokens through exchanges to liquidate the money. It is one of the major factors which makes IEO much better than ICO.
- Not restricted: It is not restricted in many countries like ICO. China and many other countries have restricted cryptocurrency trading and ICOs. IEOs doesn’t face this problem.
- Reward programs: It includes distribution of airdrops and bounties for the investors. Exchanges are airdrop friendly, and it encourages more investors to invest in the project.
- The benefit to exchanges: The exchanges receive listing fees from the issuing company. They also benefit from new users.
- IEO development: There are many IEO development and marketing companies which help the users to develop and market tokens. They provide IEO development services for a new project from scratch as well as an existing project. An IEO development company, thus is extremely beneficial for investors looking for one point solution.
- IEO solutions: There are marketing companies which provide IEO solutions to its users. If at any point, you need to start an IEO project, you can simply approach an IEO solutions company.
These are all the factors which makes IEO so much better than ICO and still trending despite all the odds.
Famous IEO Exchanges and Platforms
Binance was the first exchange to launch a successful IEO platform called Binance Launchpad. After this, all the other exchanges started launching their own IEO platforms and provide Initial Exchange Offering Services. Some of the famous exchanges launching IEO platforms are as follows,
|Bittrex||Bittrex International IEO|
IEOs in 2018
ICOs started collapsing in 2017 and 2018due to scams and frauds. People started losing hope in the Cryptocurrency market. However, it was saved by IEOs, which provided a much safer and trustworthy market for investment. Binance was the first exchange started in 2017. Coineal exchange was started after Binance in April 2018. It focused on advanced development. It has launched ten successful start-ups like ZeroBank, IPWeb and GTEX. In 2018 Bread raised $6 million through IEO. IEO gave investors a nice platform to invest their money in. IEOs became quite profitable and famous in late 2018.
IEOs in 2019
The first quarter of 2019 was very profitable for IEOs. But later the market started collapsing. Bitmaxlaunchpad was started on 10 March 2019. It raised $1.5 million. Celar raised $7.5 million in 2019. Matic raised $4.5 million. Top raised $3.3 million. Newton raised $ 4.8 million. VeriBlock raised $7 million. Binance raised about $17.5 million followed by Huobi raising $8 million in 2019. IEOs raised a total of $1.474 billion in 2019. However, in late 2019, IEOs investors lost up to 98% of their money due to scam. Early 2019 gave a boost to IEOs buy by the end of the year many people lost their money.
Successful IEOs launched in 2019:
- BITTORRENT – $7.2 million
- VERIBLOCK – $7 million
- OCEAN PROTOCOL – $6 million
- FETCH.AI – $6 million
- MATIC – $5 million
IEOs in 2020
IEOs suffered greatly by the end of 2019, but all is not lost. There is still hope of IEO as it is trending, and the market can change anytime. There is a chance of IEOs to grow as the exchanges are trying really hard to improve the quality of the project listing. There are several initial exchange offerings services on Coinsbit. Wolfs Group Company which invests in the payment gateway is raising funds to build a crypto exchange mobile app and money transfer services. QAN Blockchain Platform is doing really well in 2020.
IEOs launched in 2020:
- INTELLIGENT HERO – 8.1%
- QAN BLOCKCHAIN PLATFORM – 9.6%
- SAFEPOST – 8.1%
- PEACE TOKEN – 9.1%
- DEXIVE EXCHANGE – 6.8%
- MYTVCHAIN – 8.9%
- 2LOCAL – 9.7%
- MULTICHAIN VENTURES – 8.4%
- QUANTUM GENERATION – 8.2%
- ARA – 7.9%
As we can clearly see, IEOs started performing quite well in 2018. Then it faced immense growth in early 2019. It continued growing but suffered a major setback at the end of 2019 in which investors lost 98% of their money. However, even going through such a downfall, people are still investing in IEOs. There many successful projects launched in 2020. And if it grows at the same rate, IEOs will inevitably rise again. It has a quick and secure approach which makes it easier for both the issuing company to launch its project and the investors to invest without any hassle. Between all this, the exchanges also gain money in the form of listing fees. In the end, we never know when the cryptocurrency market will change suddenly. So let’s not lose hope and keep IEOs going.