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Explain in your own words, what is an IEO
Nowadays, you'll find several thousands of cryptocurrency and blockchain projects. Majority of these projects involve the need for financial incentive to keep the developers and contributors actively engaged. In some cases, these projects rely on donations or contributions from generous asset holders. At other times, external fundings become necessary.
For some dedicated and devoted developers,opting for an IEO is an interesting option to raise capital.
IEO is an acronym for Initial exchange offerings, and it involves the process where by funds are raised for an upcoming project,through the use of cryptocurrency exchange that is reputable as an offer to investors.
These developers need to raise money to commence their projects, so they engage in fundraising protocols.
IEO are therefore fundraising events for crypto startups done through a trading platform.
It can also be seen as a process where tokens are sold to individuals or group of individuals through a trustworthy and established exchange site by simply exchanging another cryptocurrency.
IEOs were first introduced in 2019 at the aftermath of the negative circumstances and loss of trust experienced in 2017 in the ICO (initial coin offering) boom.
Today, the IEO have become a common trend when it comes to launching new projects.
It is common for company's launching a new token to carry out an IEO on their exchange sites where the cryptocurrency exchange sites oversees the token sales. What these companies do is to bring forward a project that is to be developed, stating it's vision, mission, objectives and even technical specifications.
Then a coin or token to be bought is presented in exchange for the project.
Since the token sale is usually done by a recognised, reputable cryptocurrency exchange, the chances of fraudulent activity and scams will be very minimal than through ICO. Since an IEO involves a crypto exchange site, the developers going for this route needs to be serious about their plan of action. Usually the IEO proposal is thoroughly reviewed by the participating exchange and most times these exchanges put their terms and conditions for every IEO they decide to offer.
Do you consider IEOs an Advantageous way to make an investment?
With many start up developers with great ideas and interesting projects but unable to raise funds, IEOs are therefore an advantageous way to make an investment.
In the past, participating in an ICO carried so many risks. This was because investors needed to send BTC or ETH to a smart contract or a website and would hope to receive tokens in return. Sometimes it never happened.
But with IEO done on recognised exchange, an investor is sure of recieving tokens in return.
Also looking at ICO, anyone with basic smart contract knowledge and web development skills could design a shady website with feigned promising roadmap and start raising money.
This is hardly the case with IEO since it's done in recognised exchangers.
With an investment in IEO, the tokens are guaranteed to be listed on the exchange site organizing the sale so there's no fear of inability to trade this tokens. It also makes it simpler for investors to exit their positions if they chose to do so.
An IEO presents a great opportunity to be able to buy upcoming tokens on presale knowing that they will be listed on other exchange sites which will lead to huge profits.
Due to the greater level of due diligence carried out by these exchange sites on these IEO launched on their platforms, IEO is an advantageous investment.
List advantages and disadvantages of participating in an IEO
Advantages of participating in an IEO
They have high probability to run smoothly since the owners of these exchange will want to maintain their reputations and trusts.
IEO investors feel more confident seeing and knowing that the tokens/coins they invested on will likely be listed on these recognised exchangers.
The security and transparency of IEO is an add up. With IEO, anyone can participate and receive tokens in return provided they meet the terms and conditions.
With IEO, there's a guarantee that after the primary sale(pre-sale), there will be secondary market sales which are often higher than the presale.
They are very easy for anyone to participate. In most cases you don't need a have so much knowledge of crypto to join.
It's very difficult to find scam projects with how rigourously these exchangers screen the projects.
Disadvantages of Participating in an IEO
They are highly centralised with sometimes the issue of token distribution.
The factor of confidence and trust rests in the hands of third parties(exchange site) with the likelihood of things going wrong although they rarely happen.
There has been issues of price manipulations by exchangers which can lower the morale of investors.
Because of the many number of persons buying an IEO during a presale, there has been cases of BOT malfunctions.
The KYC (know your customer) and/ or AML(anti money laundering) deployed in an IEO are usually cumbersome and unfriendly especially for people who don't want to disclose so much info.
There's also the challenge of start ups and developers having to pay what's known as listing fee for their projects.
Explain how to participate in an IEO,For the process explore various Exchanges, Choose one of them and explain the process
How to participate in an IEO
IEO participation is quite easy, since it requires a middleman or the use of exchange app. The involvement of a middleman in the IEO helps users, as most times research must have been carried out by the middleman or exchanging listing an IEO as their reputation is at stake,if any IEO is listed without verification. It will be wise not to put one's egg totally in one basket by investing 100% as most IEO are usually not to be relied on. It would be wise to make a thorough research as to a particular IEO project before going into such a project, it will also be wise to know the requirements for participation and if a person meets such requirement. Sometimes it might seem as if most IEO projects are not available, this is because there is a limitation as to the highest and lowest purchases for a person or an investor thereby also resulting in limitations in their processing power.
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P2PB2B
In this platform , a tool is available that can help with funding raising when it comes to listed projects. The tool is known as the P2PB2B lunchpad. The P2PB2B launchpad gives information about active IEO,that are available for either pre-sale or private sale,it also gives information about IEO that are listed for the sake of project support.
• To participate, one needs to sign up,by imputing their email and creating a password.
• Once that is done,login using P2PB2B so as to verify one's account. Once an account is verified, the next thing to do is funding of account with assets such as BTC,USDT,....
• scroll to the launchpad section and choose the IEO of your choice
• Enter the value of IEO that one needs.
• You can swap it with an asset such as USDT, BTC. Note that it must be the same amount.
As an example of a project that had a successful IEO, Explain that project. Be on topic(use screenshots)
I will be talking about a very successful IEO project known as C98 (Coin98).
The IEO of this coin was introduced on 3rd July 2021, and it was just for that day, after which it was placed for resale. It is a coin that makes it possible for swapping, staking as well as yield farming for most block chains. With help of smart contracts, coin 98 makes available wallets, that helps to control assets of various blockchain. More than 50,000,000 of c98 was sold at the rate of $0.075 during its IEO. As at time of carrying out this task, it is sold at $2.41.
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Conclusion
There's no doubt that the initial exchange offering (IEO) has proved to be an avenue to raise funds for startups and Developers.
Unlike Initial coin offerings (ICO), IEOs are more secure, with no known scam activities since they're launched on reputable exchange sites.
There advantages far outweigh their disadvantages.
However it's important that investors do their due diligence before investing in IEOs as the crypto market is highly volatile.