A loophole in how to raise funds? !
China and Korea are paying attention.
Speaking of funding for cryptocurrency, I think that the majority imagine "ICO"!
However, another method is now popular in China and Korea!
In China and Korea, where ICO (Initial Coin Offering), which is fund raising using tokens, is prohibited, IEO (Initial Exchange Offering), which is another form of financing using tokens, is secretly popular I'm starting.
The research company Diar informed.
IEO is a type of financing that uses tokens, and unlike ICO, a mechanism that only users using an exchange can buy and sell.
It is expected that fraudulent tokens will be eliminated as exchanges perform preliminary screening of tokens.
China and Korea banned ICO in 2017.
However, according to Diar, the exchanges of the two countries have found a technical loophole at IEO.
It was reported that they were raising funds.
For example, Korea's Exchange ProBit launched its own funding platform in February this year, raising over $ 2 million through more than 20 IEOs.
China's BW.com also launched the IEO platform despite China's ban.
Diar pointed out that as a way of trading these exchanges, it has repeatedly raised small-scale funding multiple times.
According to anonymity of a Korean exchange official, "I don't know if this method will last, but I feel that the regulatory environment is better than before."
Recently, it was reported that several senior officials of the Korean government are considering changing the regulatory framework of digital currency including cryptocurrency.
This year, major cryptocurrency exchanges such as Binance and Fobi have launched their own IEO platform.
With the bear market continuing, IEO funding has been strong and token prices are also rising.
Because they are tokens that have passed the examination of the exchange, they are more reliable than ICO!
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