Binance CEO Affirms Both ICOs And IEOs Have Legal Compliance Obstacles To Overcome
Binance CEO Affirms That Both ICOs And IEOs Have Regulatory Compliance Issues
The CEO and founder of Binance, Changpeng Zhao, has recently talked about Initial Exchange Offerings (IEOs) during an interview with Bloomberg. According to the man in charge of one of the most powerful crypto exchanges in the whole world, the so-called IEOs are as much prone to regulatory issues like the famous Initial Coin Offerings (ICOs).
IEOs have surfaced like a panacea in the industry. They are a new and more trustworthy alternative to ICOs and, despite being realized on centralized exchanges, they are now being considered the better alternative to the crashed market of ICOs, which has a pretty bad reputation.
The exchanges generally operate the sales on these platforms and they can be able to vet projects and investors who are not in accord with the ideas of the company about security and/or compliance.
While the IEOs are benefited from having third parties looking at the whole process of selling tokens, this does not necessarily mean that they are more compliant than other alternatives, at least that is what CZ believes. He affirmed that regulatory compliance is still needed in most cases, especially when companies are launching something that can be understood as a security token.
He also talked about the new term: IEO. Many people affirm that the Binance Launchpad has started this new term, but he affirmed that this was not the truth. The term appeared on its own and the company has never officially used it.
They not even created the idea. “Centralized ICOs” were a reality in 2017 already, so they just copied the model and used their brand to market it.
IEOs Are A Trend Now
Independently on who started them, IEOs are currently a strong trend, this cannot be denied. Binance has hosted several successful launches so far after it inaugurated its platform with the launch of the Tron-owned BitTorrent (BTT) tokens.
More exchanges are on this wave of IEOs and they are trying to revive this market, which was considered dead when ICOs started to tank. Will 2019 be the year of the IEOs? Let’s wait and see.