Initial Exchange Offering Model’s Momentum Picks Up During April 2019
April 2019 seems to have been a successful month for the Initial Exchange Offering (IEO). Some of the leading exchanges on the market offered tokens that immediately increased in value upon being listed and the growth was at least viable over the short time.
Twitter user Nguyen Vu Huyen tweeted an image of successful IEOs for April. A few exchanges that added onboard projects and IEOs in late April include Bibox and CoinBene. The IEO model is a replacement for the traditional ICO token sale, even though recent data shows that ICO sales are faring well too. For instance, it seems that tokens raised over $53 million in sales in April. Binance features IEOs too, and they include Bitfinex, Bittrex, OKEx, and Huobi.
One question that arises in relation to IEOs is why users choose them. Bitzoin.io tweeted its reasoning for why users should trust an IEO. It shared on Twitter reasons such as funds are safe, there is an all-in-one place to buy and trade, and it is insured exchange listing for the project.
Why should we trust an IEO ?
– Funds are safe
– all-in-one place to buy and trade
– insured exchange listing for the project
— Bitzon.io (@bitzon1) May 2, 2019
Theoretically, because user funds are held on the exchange and they receive tokens, the ledger could refund buyers. In addition, the IEO model varies on platforms. There are some that sell out within an hour, and others that have token sales that take months to come to an end.