The cryptocurrency market continues to expand all over the world. Back in 2017 and the beginning of 2018, projects were launching Initial Coin Offerings (ICOs) aimed at gathering funds to develop their projects in the market. Now, Initial Exchange Offerings (IEO) are spreading across the crypto space.
Could IEO Improve ICOs?
ICOs were a synonym of fraud, scam, and FOMO (fear of missing out). Due to this reason, the number of ICOs fell throughout 2018 and reached new lows in the last few months. IEOs aim at solving trust issues and increasing transparency in the market.
At the moment, it is becoming highly difficult for interested individuals and traders to invest in these IEOs. Now, IEOs are about the platform that sponsors them rather than about the project itself. There are some exchanges now offering IEOs at the moment, including Binance with its Binance Launchpad or HUobi Global with the Huobi Prime platform. But there are other exchanges with these platforms, including OKEx, Kucoin or Bittrex, among others.
No matter which projects, it would eventually be sold in just a few seconds. Many users will also complain that they were not able to participate and that the platforms experienced some issues. Once the token sale ends, the digital asset pumps and a few days later it drops back to a more rational price.
Are these IEOs solving real problems faced by ICOs or they are just a new attractive way to sell more tokens to the market?
Initial Exchange Offerings are attracting the attention of many individuals around the world that would like to place their funds in the market, but they do not seem so different from traditional ICOs.