Initial Exchange Offering and Binance Launchpad. - Crypto Academy / S5W6 - Homework post for nane15

Explain in your own words what an IEO is?

Initial Exchange Products (IEO) are a way for startups to raise funds by selling utility tokens, which give the company priority status through a cryptocurrency trading platform. In short, cryptocurrency exchanges help monitor token sales by ensuring that the project review process is reviewed.

However, IEO allow potential investors to purchase these assets before the project is launched to the market. The exchange will assist in the token sale, and registered users can lead token purchases before the tokens are publicly traded after providing their KYC information.

IEO are issued by exchanges. If a start-up is considering raising funds in this way, they should seriously consider their plans. In most cases, the participating exchanges will strictly review the IEO proposal. To some extent, the exchange is also risking its own reputation when issuing IEO.

At the beginning of 2019 Initial Exchange Offering (IEO) projects rose in popularity, It can be said unequivocally that IEOs emerged as a result of ICO, being their way of making money that is more transparent and less risky. The risk is less, because each project that offers its token is selected, and the token list is guaranteed.

Project developers are not looking for investors, but cryptocurrency exchanges choose promising teams and promote their coins among their users. The company launched a dedicated platform for doing crowdsales (now all the biggest crypto exchanges have such a platform). Initially, the IEO took place on a first-come, first-served basis, finished in seconds and had technical issues due to too many applicants, most of whom didn't have time to buy even a few tokens.

Therefore, Binance proposed a lottery scheme that is now used by many exchanges. Investors who wish to participate in the IEO must keep their own exchange tokens in their wallets for a certain period of time before the crowdsale, for example, two weeks. After that, according to his balance, the user receives a number of lottery tickets, each of which can be a winner and allows him to buy new tokens for a predetermined amount.

Do you consider IEOs an advantageous way to make an investment? Explain?

I think yes, this is a profitable opportunity because the project is based on a lower level of risk, we can say that it is a more flexible IEO hosting. Undoubtedly, the token will be listed on the cryptocurrency exchange that regulates the sale.

Thus, it is easier for investors to leave their positions depending on the situation. However, we cannot say that it is completely risk-free for the IEO, which is assessed in detail by the participating exchanges. Cryptocurrency projects that raise funds may not achieve their goals. As a result, the price of the token depends on its value during the IEO.

In addition, you can view IEO, which represent a significant investment opportunity. If you pre-purchase tokens for trading on the cryptocurrency market, you may have a variety of benefits. On the other hand, not all IEO tokens offered for sale can increase in value.

While every IEO is verified by a participating exchange, no investment is without risk. There is a possibility that the fundraising project will fail to realize its vision. This can and often will affect the price of the token, regardless of its value during the IEO.

Thus, IEO can also provide profitable investment opportunities. The ability to buy future tokens in advance, knowing that they will be quoted in a market with good liquidity, can create several opportunities. However, not all IEO tokens will increase in value after the start of trading.

List advantages and disadvantages of participating in an IEO?

Initial token exchange offerings are only gaining momentum. However, even now, a number of advantages of IEO can be identified compared to other token sale methods. However, despite the obvious advantages, there are negative aspects to the initial exchange offering.

Advantages

Exchange of project selection, which takes place according to strict criteria. Selection, as a rule, can only go through very interesting and promising projects.
For users, the process of buying tokens with exchange offers is simplified as much as possible. You do not need to register on many sites, transfer money to third-party wallets and wait indefinitely.
The sale is made at the same price for all participants, which means that a certain circle of people will not have a reason for the initial sale of coins after listing. For example, from those who bought tokens in the first stage at a discounted price. This prevents the token price from crashing immediately after the IEO ends.
less opportunities to commit fraud, as the exchange is responsible for conducting IEO with its reputation.
participation is technically simple - token purchases are made directly from a personal account on the site (no need to bother with wallets, network settings, etc.)

Disadvantages

The number of projects placing coins through IEO is very small due to strict selection by exchanges.
The procedure for most applicants is rarely successful, due to high demand and little time. The lottery principle in conducting IEOs forces investors to allocate large amounts to participate.
All investors must comply with AML/KYC. The cryptocurrency community is known to be full of privately obsessed people, so going through the AML/KYC procedure can be unkind to some.
Only verified account holders on exchanges can participate in the IEO, and no one else wants to. Moreover, most exchanges are centralized platforms. Users have to entrust their blockchain assets to third parties, which is associated with the risk of hacker intrusion and attack.
There are concerns about bots being programmed to participate in IEO and outperform human investors.

Explain how to participate in an IEO, explore various exchanges, choose one of them and explain the process. (Please use from screenshots.) (No need to participate, just register, present proof of verified account and explain the whole process, do not use Binance)?

As I explained above where the first exchange offering (IEO) was to raise funds for new projects through cryptocurrency exchanges. Since the exchange is a key participant in the placement, the main action will be carried out there. Almost all major exchanges have a site for making initial exchange offers, and the procedure for each exchange may vary slightly.

As for participating we must register on a platform that has involvement in the IEO, now there are a lot of launchpads that participate in IEO projects. We can see it on the site Coincodek. After we open the site, a menu will appear as below.