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Has The IEO replaced The ICO ?

In May 2018, a Cayman Islands startup made major waves when it raised over $4 billion in an initial coin offering (ICO). The capital raised eclipsed that raised by the most extensive initial public offering held on traditional stock exchanges that year in the US. The biggest Stateside IPO in 2018, the Elanco Animal Health IPO raised a comparative $1.74 billion. 

What disturbed traditional investors the most was that the huge funds raised by the ICO were meant for a project that did not have a live flagship project as yet. Done by Block.one, the eos.ios ICO mostly sold due to the hype and FOMO. There was also the promise that the project designers who had proven blockchain project building experience would repeat their success. 

The dwindling ICO sector

Unlike an IPO, which gives investors rights to a running business’s stock ownership, ICO investors receive tokens. The use case of these digital currencies if often based on a promise that they would provide a good return on investment, once the project they belong to goes live. In 2018, $7,812,150,041 was raised from 1253 ICO projects. This amount is $1 billion more than the $6,226,689,449 in 2017’s 875 ICO projects. 

Unfortunately, many of the investors that poured their funds into various ICOs found out in a very short time, that they had invested in white elephant projects. Others had poured their hard-earned cash into outrightly fraudulent projects that took their money and run. Many of the projects that raised massive capital sunk during the 2018 crypto winter. Major names like Tezos have suffered a slew of lawsuits as infighting between its community shattered the project’s progress.

The crowdfunding model that had become the darling of the crypto industry quickly took on a negative perception. Businesses, just like the DotCom bubble era, had rushed to do ICOs when they had no use case. The hype began to break in 2018 as regulators moved in to tighten up loopholes and protect investors. 

Initial Exchange Offerings on the rise

In 2019, as per data from icodata, $346,089,025 has been raised from 88 ICO projects. Crypto pundits have in many instances declared the ICO dead. Most have said that the IEO is a better crypto funding model since the decentralized model of funding had displayed too many weaknesses. While there has been an actual departure away from the ICO to the initial exchange-offering model of crowdfunding, it is still too early to declare the ICO dead.  

What is happening to the ICO is the rather unpleasant process of a healthy return to ‘normal’ in crypto funding. No mania, no hype but tokens with genuine utility, asking for financing sans an exaggerated hard cap.

The IEO is doing much better than the ICO in 2019. Coinschedule data shows that the IEO has raised $ 2,811,143,577 this year. This new kid on the block is just getting started, and because it has the advantage of trust working for it, it could outperform the ICO’s in its glory days.

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Initial Exchange Offering Of The Month

Isonex Capital

15 Oct

Exmarkets

exmarkets-ieo
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Complete Initial Exchange Offering Calendar List

Name Platform Starting Date Ending Date Rating
DREP-ieo

DREP

Starting Date

1 May

Ending Date

9 Aug

4.4

Star Star Star Star Star
Star Star Star Star Star
telecoin x-ieo

Telecoin X

Starting Date

31 Jul

Ending Date

30 Aug

2

Star Star Star Star Star
Star Star Star Star Star

Band Protocol

Starting Date

16 Sep

Ending Date

17 Sep

4.2

Star Star Star Star Star
Star Star Star Star Star

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