Since early 2019, Initial Exchange Offerings (IEOs) have started picking up steam and appealing to the long line of crypto investors, exchanges and project teams. IEOs have successfully taken the place of ICOs in the crypto sphere, the very first IEO took place in 2017, however, the trend has started catching up only recently.
ICOs and IEOs have a few similarities and a few varying features which just might answer the questions that ICOs left unanswered. Both the models employ crowdfunding to gather funds. Additionally, unlike IPOs the investing parties are not limited by any geographical boundaries or jurisdictional barriers.
The main difference that separates the two crowdfunding models is that the Initial Exchange Offering of any cryptocurrency exchange/currency is facilitated through token offering on another platform instead of the startup themselves. This little change in the fundraising process has its own set of consequences and benefits.
Various top crypto exchanges across the globe have launched their own IEO launchpads and are making attempts to attract new projects that wish to raise funds, by directly selling tokens to the exchange’s user base.
If you too are planning to launch your own Initial Exchange Offering, here is a list of top crypto asset exchanges to consider:
Binance Launchpad: Crypto Giant, Binance is the very first name to consider if you are looking to launch your IEO, cutting edge technology, a great number of partnerships and a huge user base, are the very reasons for exchange’s high liquidity. The exchange currently has the most number of users across the globe which will give your IEO a broader reach.
OKEx Jumpstart: This Malta based crypto exchange, is leading exchanges by the biggest digital currency trading volume. Unlike Binance Launchpad, OKEx Jumpstart uses an allotment and subscription approach which adds to odds in your favor. Subscription opens only for 30 minutes and closes once the subscription limit is reached. Once this procedure is over, allotments follow.
Huobi Prime: Huobi has launchpad that is a Direct Premium Offering (DPO) platform which means that all the coins bought through Huobi Prime immediately get deposited into the user’s account and can be traded on the Huobi Global against Huobi Token (HT).
Kucoin Spotlight: When the project was started, the only mandatory requirement to participate in the crowdfunding, was to have a verified account and Kucoin used a “first-come, first-served” policy for the same. However, now the exchange is planning to use another method, i.e., lottery model. The exchange’s own coins are being used as an instrument in the platform’s IEO model.
Initial Exchange Offerings may finally end a long cryptocurrency winter, brought on by ICOs. IEOs may bring out more security to the fundraising model, changing the fortunes of many exchanges and investors.
Do you think IEOs will successfully replace ICOs? Let us know in the comments below.