Why Bittrex becomes the IEO “nightmare”, but CoinAll can make it more successful
In year 2019, IEO (initial exchange offering) much be the most popular term in the crypto world. This kind of fundraising model on the exchanges has made the market more active. Thus, IEO has also became the new point of attracting more traffic for the exchanges.
In the current situation, crypto exchange field also has the 20/80 rule, which means most of the users only focus on the top exchanges, and it causes that those exchanges has more domination. However, after several IEO projects, some of the so-called top exchanges don’t have the expected performance. On the contrary, investors don’t have the return on the investment, but lost more money. It is really not good for the users, and they have actually lots of complaints on the IEO.
Let us take an example. Bittrex could be one of the top exchanges, and it has great reputation in the market. Projects would like to join them and implement IEO for fundraising, but the results are not so cool. The first IEO project on Bittrex is Ocean Protocol, but the coin price has reduced up to 80% after it is listed. Honestly speaking, it could be kind of “Nightmare” for the IEO market. Certainly, lots of users have lost their money, but it is more likely that they even have no way to get it back. Thus, for those kind of top exchanges, they don’t have to care too much about their users, but only benefits bought through their users.
However, CoinAll, as the emerging exchange, has also launched the first IEO project — Pivot, but the coin price surges up to 300%, and it still keeps around 250% increase compared with the IEO price (0.00075USD). CoinAll is the strategic partner of the world-class exchange OKEx and it shares the advanced security system, 24-hour global customer support, as well as a 20-million user base of OKEx, CoinAll is dedicated to offering the most premium digital asset trading experience to all users. For the crypto exchanges, it is of great importance to select high quality and potential projects for the users, especially in the IEO mode, because it will influence the final benefits of the users.
Bittrex has selected Ocean Protocol as the first IEO project, and it concentrates on the decentralized data exchange protocol which mainly serves AI market in order to provide users with more transparent data. Apparently, this project would like to combine blockchain and AI industry to create better ecosystem. This is actually normal for most of the exchanges because they like to choose public chain or AI concept projects which have higher valuation and raise more fund. However, it is not easy for this kind of project to get on the ground right now, which means their coin may not able to support that high valuation.
On the other hand, Pivot is the world’s largest investment and communication platform for blockchains, dedicated to providing users with real-time comprehensive cryptocurrency market, information, trading one-stop service. Pivot hopes to help investors better manage and invest in blockchain assets through financial technology. PVT will be used as the only token in the Pivot ecosystem, and PVT will also be used as gas and pledge in the platform and partner services. Pivot will use 30% service fee and game revenue to buyback PVT, and all PVT that is bought back will be burned.
If comparing the two projects, Pivot has much stronger community, and they will become the solid support for the coin price with the consensus. Therefore, as you can see from the result, it proves that CoinAll makes the right choice for the users.
In addition to the project concept, the token circulation and initial valuation also have great influence on the performance when it is listed on the exchanges. For blockchain projects, they always would like to raise more fund, but it means more circulation, which actually brings higher risk to the IEO investors. According to public data, Ocean Protocol would like to raise 6.7 million USD via the Bittrex IEO, but Pivot only sets it as 3 million USD, which means Ocean Protocol has much higher valuation after the IEO, and the investors may have very less profit with higher risk.
Meanwhile, the initial token circulation of Ocean Protocol is over 20%, and the cost of this part maybe even lower than the IEO price, which of course will cause people to sell it out on the exchange. However, institution investors from Pivot has locked up their coins, and CoinAll has also clearly stated on the announcement about the lock-up rules. Thus, it actually reduces the risk of selling out in short period, and preserve the benefit for IEO investors. People may also get more potential benefit because of the lower initial valuation.
In terms of the IEO stats, there are more than 30,000 users who have participated in the campaign, which means more users have chance to join the event and enjoy the benefits. However, according to public data, there are around 8400 users joined the IEO in Bittrex exchange, and it means token allocation will get concentrated in fewer people, which is actually not fair for others. Also, it is much easier to cause large sell out in the market.
In conclusion, why Bittrex doesn’t consider all the issues mentioned above for their users? Does it mean Bittrex never put their user as the first priority? However, as the emerging exchange, CoinAll always would like to consider the users at the very beginning and select the best assets for them. Therefore, it is easy to understand why CoinAll has much better performance than Bittrex in terms of the IEO program. In fact, in the exchange category, there is no top things forever. Exchanges should always take care of their users, and they can move further and better in the future.
