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Why are the most successful projects running an IEO ?

The 2017/ 2018 ICO era will remain etched in cryptocurrency history as the years which little known entities with nothing more than a white paper raised millions in minutes. This crowdfunding platform has left many of its investors disillusioned, leading to the slow decline of the fundraising method.

The cryptocurrencies that survived the crypto winter of 2018 have rebounded, with Bitcoin taking off on its 2019 rally. Alongside this rally, is the growth of the initial exchange-offering platform for crypto crowdfunding.

The world’s most popular crypto exchanges, including Bittrex, Binance, and Bitfinex have launched their token platforms to facilitate the growth of this fundraising model. Cryptocurrency exchanges have, for many years, relied on the traditional brokerage model of charging margin fees and trading transactions fees for their revenue.  

A new source of revenue for crypto exchanges

To further enhance their revenue, some began to charge opaque listing fees to upcoming ICOs to partake of the burgeoning market. Nevertheless, with the declining ICO model, exchanges have found themselves in need of better sources of revenue. To capitalize on the influence and power bestowed on them by their large captive audiences, these businesses have come up with the IEO model. 

Related : Upcoming IEO Calendar

This IEO no longer relies on non-exchange blockchains. Projects now run on the exchange’s platform, with the exchange acting as a support to the token sale. Binance, one of the world’s largest cryptocurrency exchanges tested the IEO model first in 2017 when they launched the BNB token sale. As per the Binance white paper, the exchange’s native token would give its users discounts on BNB trading pairs. Binance also put a clause in the whitepaper that enforced a quarterly token burn.  

The BNB token sale raised $15 million right in the middle of a falling cryptocurrency market. By 2019, the BNB market had hit the $4 billion range, driving more non-US cryptocurrency exchanges to the IEO.  In the Binance example, all listing investments and listing fees in the launched IEOs are paid in terms of BNBs. This has given the exchange an evergreen source of income. 

Initial Exchange Offerings are more trustworthy

Since the exchange also acts as an intermediary and a guarantee, investors trust an IEO more than they did most ICOs. This factor attracts more traders to the token sale, which benefits both the exchange and the project. The exchange’s native token will enjoy increased usage and demand, which is a big plus for the crypto exchanges.

Most successful projects are turning to the IEO because it is a guaranteed model of crowdfunding. The projects will not need to initiate expensive and time-consuming marketing programs of their own. The supporting exchange will market the token sale on its platform, cutting down on the project’s creators expenses.

The IEO also has an added advantage to the project’s managers. Once the token sale is launched on an exchange, the powerful reach of the platform gives the token sale a considerable boost. There are thousands of investors at hand, willing to purchase to tokens. There are instances where tokens have been sold out in a matter of seconds. 

The project’s tokens will enjoy quick access to liquidity and are most often on sale shortly after the token sale winds up. The investors, on the other hand, get a fantastic opportunity to invest in high yielding assets for long term or short term trading strategies.

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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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