Is Initial Exchange Offering (IEO) safer than ICO?
Safety can make or break an investment opportunity. Growing interest in Initial Coin Offering (ICO) projects in 2017 created an avenue for fraudsters to fundraise using empty promises about how the blockchain technology would make their investors wealthier.
Because 90% of project teams did not live up to their road map projections, investors who otherwise might be willing to fund promising, new projects became more wary and distrustful. Thus, honest startups had to find new ways of guaranteeing the promised results to their investors through increased security.
Initial Exchange Offering
Initial Exchange Offering — much like Initial Coin Offering — facilitates the issuance and sale of tokens in order to seek funding for a project. As opposed to Initial Coin Offering, however, IEOs allow only the verified users of host exchanges to purchase said tokens. IEOs do not include a public issuance aspect where funds are sent to a project wallet the way it happens with ICOs. This difference alone makes IEOs considerably safer as investment opportunities.
IEOs are also safer than ICOs because of the management and control capability of a trusted third party — the host exchange. An ICO is something anybody can do and there is nothing to guarantee honesty and security. ICOs do not entail monitoring, whereas, to engage in an IEO, a project team is required to meet exchange requirements or else have their token rejected by the exchange.
One might wonder, however, whether an exchange could act unethically to attain financial benefit. The answer to that question becomes apparent when we consider long term operation being the goal of any exchange. The aforementioned would be cut short if it came to light that an exchange is engaging in fraud. A good reputation is hard to earn and harder still to rebuild.
In order to build trust with their users and minimize the risk associated with their investment, an exchange runs an in-depth background check on any project willing to issue tokens through an IEO.
Other than filtering out scam in the initial stages of any prospective project, an exchange acts as a convenient platform for both IEO projects and users alike, the latter having the opportunity to become investors. Market liquidity benefits as well, since exchanges usually have a large number of users.
IEO In Poland With Fortem Capital
Increasingly, the IEOs that we can see on the market are focused on a unique and innovative product or service. Fortemcoin.io by Fortem Capital is one such project and its IEO will be hosted by the exchange Coinsbit.io
The team behind the project has decided to use IEO to fundraise precisely because of its security speaking to the company’s honesty. Fortem Capital director general thus communicates that transaction security for future investors and risk management are of utmost importance to the company.
Fortem Capital’s mission is to create Poland’s first real estate investment platform using the blockchain technology.
Every contract is a smart contract
FCQ tokens are backed by tangible, durable assets: real estate.
Every registered Fortem Capital platform user, having undergone a KYC process, will be able to select one or more real estate projects to invest in.
Every real estate project will be priced in tokens reflecting its monetary value in fiat currency (EUR, PLN, USD).
The investor will have the option to decide for themselves what percentage of their tokens they wish to invest in how much of each property’s metrage.
Transactions between a platform user and Fortem Capital will be legitimized through an escrow-based smart contract
Transparency Is Here
Initial Exchange Offering is gaining momentum and, thanks to the increased security it offers, it is winning the trust of a growing number of investors. More and more exchanges are likewise deciding to enable IEO-based token sales.
Almost all of the major exchanges now feature Launchpad within it. It is highly likely that IEO is the next step toward ultimately banishing ICO from the cryptocurrency crowdfunding market.
WEB: https://fortemcoin.io/
Facebook: https://www.facebook.com/Fortemcapitalsa
Instagram: https://instagram.com/fortemcapitalsa
LinkedIn: https://www.linkedin.com/company/14778591
Twitter: https://twitter.com/capitalFortem
YouTube: https://www.youtube.com/channel/UCj5ieAJGQeeaxPeaEAmiciw
