What Is An IEO In My Own Words
An IEO otherwise known as initial exchange offering is an event where crypto startups raises capital through a crypto exchange, this exchanges so to speak oversee and organize token sales on their platform which thereby allows this said token or project gain exposure and credibility to attract investors.
As is the case in an IEO, it usually ends with the exchange listing the project's token. The initial exchange offering is more of a popular form of crowdfunding than ICO (initial coin offering), because in an ICO they try to reach investors directly but that is quite different in an IEO because rather than reaching investors directly in an IEO crypto projects tend to get the traction required from crypto exchanges in an IEO to raise capital and investors kind of feel more secure when they see a token sale on a trusted crypto exchange which makes them to readily be willing to invest.
The IEO is also secured in the sense that the crypto exchanges always makes sure that before any token sale that such project is legitimate as they often tend to examine some information about this token to verify its legitimacy, things like the token' whitepaper, core team, technology, tokenomic are properly being examine by the exchange before considering the token to be a legitimate one.
Normally to take part in an IEO we first understand that it is readily available in major crypto exchanges and are exclusive for exchange platform users investors easily participate by first creating an account with the exchange then they can stake exchange tokens or other supported cryptocurrency then they can mint the project's token and collect reward.
Is IEO An Advantageous Way To Make Investment
Well before investing in something it is only normal that an investor carries out due diligence on what he is about investing in and for something to be considered for investment clearly it needs to have some level of security assurance which will make the user assured that his investments are safe and not just that also we only invest in what will believe will yield much higher profit to us in the long run from our initial capital in this case therefore we can rightly conclude that an IEO is a good investment strategy.
Yes when it comes to security though centralised but the exchange make sure that the project is not a mere scam as this is what they will be promoting to their global users so they go to great lengths to ensure that this project is legitimate and also makes sure it is secured knowing that their reputation is on the line that is why it is only available in major crypto exchanges which has attained a certain level of trust and boost huge trading volumes as the case maybe which no doubt make the initial exchange offering a trusted investment both for newbies as well though we still have to ensure we do our own research.
Also when it comes to yielding profit which is often the first thing investors look at, yes we all would want to make returns on our investment the IEO no doubt has proven to be profit yielding for investors, during this token presale it normally ends with the exchange listing it on their platform making it available to millions of its users to trade publicly which of ofcourse will result in a surge in price. Had one invested earlier and then at the time of the exchange listing the person will no doubt be in profit as the price on the token will definitely appreciate in value upon exposure to the exchange public user and this therefore certify that the IEO is a good investment strategy.
It's true the crypto market is violatile and subject to up and down movement but as proven overtime we often see this IEO project tokens appreciating most times massively in price upon listing, so one who buys at the earlier stage and sells at the time of listing i believe will be in profit. For this reasons i do believe that the initial exchange offering is an advantageous investment strategy for crypto investors.
Advantages Of An IEO
There is an increase trust from the investors since the project is being vetted by a trusted and top exchange
They are open to everyone as long as the person is not restricted from using the exchange
It also offers more security though centralised, because in an IEO the exchange deals with securing the funds of investors
Instants liquidity is provided in that once the IEO ends people can almost start trading this token immediately
It also has a marketing advantage since the exchange easily offer up the token to it's already existing user base
Those are some notable advantages of an IEO indeed it has proven to be a good and advantageous investment strategy, but ofcourse as is always the case whatever has an advantage also possess some disadvantages and IEO is no different so we would take a look at some of them.
Disadvantages Of IEO
It is quite expensive to conduct an IEO
It is only limited to exchange users and if an exchange is not available in a particular place that means the people there can't participate in the exchange IEO
The crypto market is a pretty violatile one as we know, it is true that investors stand a chance of making profit with the IEO upon listing at the same time there is also risk of incurring huge loss as a move to the downside will ensure that and that is really common in the cryptospace nothing is guaranteed
Well sometimes too some exchanges fail to properly vet a project thereby increasing the risk of investors investing in a scam project which is why it's often good to DYOR
How Do One Participate In An IEO, Explore various exchanges During The Process & Choose One Of Them And Explain The Process.
To do that i visited coincodex first and when i did i was able to see this👇
Then i clicked on the icon on the top left corner as the arrow is indicating or pointing to
I clicked on the IEO icon since i was looking for how to participate in an IEO
Then a saw a long list of IEO tokens and if i had scrolled down there was more, as i was looking to explore IEO's for many exchanges i clicked on the icon on the right which the arrow was pointed at.
On the launchpad i selected poloniex Exchange to get a list of IEO on it incase i was wishing to participate and then.
Then i switch bias repeated the process and this time i selected bitfinix exchange on the launchpad and i saw the IEO's on the bitfinix exchange too👇
I then repeated the process again and this time on the launchpad i choose kucoin exchange,
Well i saw a list of IEO's on kucoin and for some reason this is the exchange of choice for me so i selected one one the possible IEO tokens there chumbi valley.
Then i clicked on launchpad and was then then taken to kucoin exchange to either sign up or register before participating in the IEO which i did ofcourse.
Step one
source
Step two
source
And the sign up process was completed
An example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots)
An example of such a project or token which had a successful IEO would be akropolis
The project was built on the idea that it would help solve an array or underlying structural problem of the world pension sector. The purpose behind the creation was simply to serve as a medium to help for the easy dispensation of pensions and other social services in an easy and stress free way as the case maybe. It is seen as a distributed saving and pension fund a solution to the collapse of the state pensions systems.
Akropolis is operates an ethereum based decentralized finance protocol which seeks to provide a financial ecosystem for saving and growing wealth which also include borrowing and lending and unlike other defi the akropolis products reduces the risk associated with said loan by providing community incentive in the form of AKRO to those who provide accurate risk management.
Token:AKT
Token Type:ErC-20
IEO Date:16 July 2019
ICO Price:$0.005
And the IEO was on huobi global and was successfully launched and listed on huobi after the initial exchange offering. Proof of coin on coinmarketcap and price today👇
Conclusion
The Initial exchange is one of the wonderful incentive in crypto space i believe that investors could make profits from as long as they carefully analyze the project's and do their due diligence it could result in profits and prove to be an advantageous investment though nothing is guaranteed in the cryptospace that is why we are always advice to remove emotions and invest only what we are willing or can afford to lose as crypto is a very violatile market and sometimes our expectations may not be reached and will may even end up in huge loss in the event of a massive dump, it is no playground for kids.