Good day steemians, it's another great time out with our professor on a very great lesson on initial exchange offerings and their influence in the boost of user token value which was previous bought at a cheaper rate
We have previously considered the Initial coin offerings and seen the advantage it presents to both crypto project developers and the users who provide support to the project by purchasing their tokens at early stage which gets to appreciate and leave users in heavy profits afterwards, and now as we can say that the IEOs are an almost replica of the ICOs just for the fact that the ICOs are fully for centralized exchanges unlike the IEOs exchanges
My assignment is below, sir
1.) Explanation of IEO in my own words :
In centralized financial institutions, the need for more capital to boost up financial strength of the company brings about the listing of shares for sale by company. People who purchase these shares in amounts, later see their shares rise in heavy value or sometimes in failed cases, they may fall. The case of this shares could be slightly likened to IEOs as they both involve the purchase of company capital which a rise is expected from and a bit different since the shares have already listed capital value while the IEOs dont.
Having given a centralized idea of what the IEOs are, I can explain Initial Exchange Offerings (IEOs),to be a form of tokens/digital currency sellout where the funds gathered in the sale of the project's tokens are used as capital by the owners of the project, to develop their projects and when the project is due, the users benefit from their already purchased tokens with increased value. Great blockchain projects that need capital funds to begin, simply engage in this IEOs, where they can garner capital and execute successful blockchain projects. IEOs, are done on different exchanges and due to the nature of some users who implement them for malicious activities, some exchanges monitor the funding programs and make sure they are legitimate.
We'll talk more about it.!
2.)Do I consider IEOs, an advantageous way, to make investments?
To a participant of the IEOs :
Firstly, IEOs are heavy advantageous investments but a wrong way of entering into them on the other hand, could bring about disadvantages. We know that every blockchain project, that is to be ventured to by a user, must be well investigated and analysed, to be sure that it is free of scam and malicious way-do.
The organization and personalities behind the project should be considered too as they help a lot in the determination of the failing or thriving project. And once all these are well considered and the project is sound and perfect, users who engage into it, majorly on medium and long term benefit majorly from it
To the owners of the project/initiators of the IEOs :
Some times, there are digital /blockchain experts who have heavy and important ideas on how to create a very good and profitableblockchain project, but don't have the necessary capital, to follow it. Such instances show how important/advantageous , the IEOs, could be since through this process, good projects without funds, could be funded
3.) List advantages and disadvantages of participating in an IEO
In the participation of IEOs, there are advantages and relative disadvantages and I'll like to consider them, one after another now and they include :
The advantages include :
Most exchanges that offer and list IEO events, make sure that the projects in question have integrity and are free from malicious activities so as to ensure that user funds are not lost in the process
Heavy profits !! In IEO events, there are relatively huge profits afterwards since the pre-sale of crypto assets leave early purchasers buying at lesser and prices and after the event, the value of the assets are relatively increased
These events secondly, render the predictions and speculative nature of a crypto market /project profitable since prospective purchases of them are gainful
Every advantageous situation, moreso could have breaches and disadvantages when not managed well and the IEOs aren't left out
The disadvantages of them include :
The unstable nature of the market makes the values of the tokens, presold to be unguaranteed ie users could get disappointed in the drop in value of the assets, after the launch /final listing
The complexity in it's participation, makes it a business of only investors who understand it well and in other words, only a particular kind of users understand it
There is the presence of scam IEOs which leave users at the loss of their funds and this particular feature makes it a part of IEO participators to always use just little funds in participating ie most users don't use heavy capital in investing in IEOs
4.) How to participate in an IEO
In participating in my IEO, i opted for the AGAIN token and in this one, a sign in was demanded before the IEO could be possible and I showed clearly how to register an account even though that the time zone for the account, wasn't friendly to my geographic location and so didn't open up formally
Like i previously said, I went for the AGAIN IEO after i accessed a platform that entailed it was on going
After this, i accessed the IEO via the probit launchpad
I went through a few details of it seeing, the name, price, exchange in Usdt, bonus etc
Then i went on to register using my email and a strong password and after registering,
I got to access the IEO purchase platform where the token exchange rate for purchase showed that for each usdt spent on the IEO purchase, 10 AGAINs would be given
Like its shown when i input 500USDT, it shows, 5,000 AGAIN to be given
Like the work given states, i am not to purchase, all i have to do is, to shows steps and I've done just that
5.) An example of a project, emanating from a successful IEO
We understand the aim of projects who conduct IEOs , is to create awareness and raise capital, for success and development of the project and one of such projects could be seen as the VeriBlock. This IEO project could be termed as crazy and profitable as it lasted for shockingly, just ten seconds.!
The VeriBlock project could be seen as a blockchain project that allowed for intense security in blockchains and solutions to problems in blockchain like double spending and prevents provides absolute decentralization by preventing 51% attacks and allowing for the adoption of the PoW security nature by any network
Now we'll see the IEO conducted by the VeriBlock :
On April 2,2019 one of the world fastest IEOs were conducted where the price of the VeriBlock tokens were fixed about a day before the auction and the IEO lasted for only ten seconds where users could buy the tokens with Bitcoins. The amount of tokens available for the IEO, was almost 3.5% of its total supply which was about 70million and the least amount that could be purchased was 200VBK while the maximum at about 200,000VBK.
It was ascertained finally that nearly 900 users participated in the IEO with over 140 purchasing the maximum sale available
Weaknesses of this IEO :It was reported firstly, that captcha wasn't used in this IEO and robots, took part in it.
*Some also said that there were sales of the token prior to the IEO date and that the time for the IEO was unnecessarily small..
Finally the listing, of the token on 5th April 2019 had it at 53% less than its value at the IEO event and so users who managed to sell off earlier, had the lucky path even though there was no complete loss of user tokens
CONCLUSION
It's the end of today's work and this lesson shed light on the solution to potential and promising blockchains without funds and how to raise funds by users and how the users on the other hand, can maximize the opportunity of well analysed IEOs to make huge profits.
We see ICOs to be mainly for centralized exchanges and IEOs unlike it for decentralized exchanges included.
Following a few steps too, i showed the steps to participation in an IEO and i think the lesson was a great one
cc
@nane15