Crypto Valley Association and PwC Report: IEOs, ICOs and STOs Generate $3.3 Billion in 2019
Report from the Crypto Valley Association and Price Water Corporation on ICO and STO in the first quarter of 2019, indicates in their study that well over 240 token sales went live during the period under review and have gulped around $3.3 billion.
The cryptocurrency market in 2019 is enjoying a smooth ride, the prices of tokens and cryptos are surging and stable, while IEO’s and others are not looking so bad.
The reports states that quite a number of exchanges made a high-value profit during the year under review, with Bitfinex exchange and GCBIB making the highest profit.
The total profits from these two, make up 35% of the total money raised during the year under review. IEO is a step away from ICO, with most of the big exchanges moving away from ICO, after making a whole lot of money from it.
Platforms like Ethereum, Binance, Tron and a whole lot of others started off with the initial coin offering, before moving on to IEO.
The Initial Exchange Offering is a step ahead of the initial ICO, it is an investment model orchestrated by exchanges, where both the investor and the exchange study the model, with a guarantee that it is not a scam in any way whatsoever.
Fear of Scam
The major reason why exchanges are drifting away from the ICO model is the fear of scam, one of the first exchanges to try the new IEO model is Binance, with the new BitTorrent IEO early this year.
Seen as a major change, the writers in the report regard IEO as a great improvement:
The IEO emphasizes a higher degree of institutionalization of the large crypto exchanges around the world as cornerstones of the global crypto finance infrastructure- and may also be seen as a response to established exchanges moving into crypto.
According to the report, the new IEO and STO trends as major rivals of traditional Initial Public Offering. The authors are however skeptical on the issue of cybersecurity, crypto scam and regulatory actions.
Lack of adequate regulation, lack of trust, organization and the influx of fraudsters in the ICO project killed the interest of the public in the ICO project. While countries like China totally placed a ban on ICO, countries like the United States and Canada placed a form of restriction on the project, and advise citizens to be weary of fraud.
Bitcoin Exchange Guide reported in May that IEO involves a start-up issuing a token on a network, and contract exchanges to handle the ICO for them.
IEO is more trustworthy than ICO, which is one of the major reasons why most exchanges are drifting towards its direction.
Scams and frauds are one of the major reasons, major players on Wall Street are skeptical about the crypto market, and with the advent of a transparent and trustworthy scheme like the IEO, the future of cryptocurrency in the world economy is secured.