Of course, today’s cryptocurrency world is not at the top of its historical success, but let’s consider a few up-to-date points:
- The digital world continues to evolve. We’ve got IEO and DPO as a result;
- Investments. Large sums of money continue pouring into the crypto, developing the market in this way. People continue investing, buying, trading, and thus — they still trust and believe in crypto;
- Technical difficulties. Objective criticism and some positive cases on the example of popular exchanges.
I will start with the first item:
The continuous active development and growing higher quality products on the market
As EXMO co-founder Ivan Petukhovsky predicted at the end of 2018 the quality of crypto-market is now increasing.
“During the last years, the market was overflowing with “garbage” crypto-assets and fake projects, because of the hype around ICO throughout 2017–2018. In 2018, the market cleansing phase has already begun and passed actively. We believe that in 2019 this trend will not just continue, but the market will recover for raising capital through the issuance of digital assets. The quality of the market will increase.”
Details in a “Five main trends that will shape The Crypto World in 2019” article:
EXMO co-founder Ivan Petukhovsky names 5 main trends that will shape The Crypto World in 2019
5 Main Trends That Will Shape The Crypto World in 2019
The first quarter of 2019 is over. We still have an active hype around Initial Exchange Offering(IEO)
IEO is an alternative and less risky version of ICO, which we have already discussed earlier.
Maria Stankevich has outlined the key differences between IEO and ICO and explained the position of the exchange on the EXMO example.
“An Initial Exchange Offering is a token sale held on an exchange. The key difference between an IEO and a traditional ICO or private sale is the use of exchange as an intermediary. The exchange team conducts a preliminary audit and technical verification of the project and its tokens assess the project’s investment attractiveness and potential, after which it announces the start of the token sale on the exchange. Investors wishing to purchase tokens do not need to send funds via a smart contract (as in the case of an ICO), register on the exchange and buy coins immediately from their personal account.”
Details in an “Initial Exchange Offering: A New Alternative to ICO?” article:
Initial Exchange Offering: A New Alternative to ICO?
One of the most hyped-up news stories of the past week has been the Fetch.AI project, which raised $6 million in 22…
The key benefits and difficulties of IEO:
- Crowdsales are being launched by the exchanges, they select promising teams and projects with further promotion of their coins among the users of the exchange.
- The acquired coins of new projects appear in the listing on the exchange that conducts tokensale almost immediately, and investors are able to sell their assets quickly.
- The new users/registrations for the exchange.
The main difficulty of participation is that on most platforms user needs to be verified or to go through KYC. An interesting fact, that from all the exchanges we had as an example, only EXMO doesn’t need any extra options except registration on the platform. Carefully study the details and conditions, since they can be individualized for each product.
Key differences between ICO and IEO
Currently, IEO service is offered by only a few exchanges
* Bittrex— Bittrex International (USA);
* Binance — Binance Launchpad (Hong-Kon);
* EXMO — EXMO IEO (United Kingdom);
* GBX— GBX Grid — Token Launch Centre (Gibraltar);
* Huobi Global — Huobi Prime (Singapore);
* KuCoin — KuCoin Spotlight (Hong-Kong);
* OKEx — OK JumpStart (Hong-Kong).
Let’s have a more detailed look on some platforms:
The first ever IEO service was the Binance Launchpad, which conducted the BREAD — $6M and GIFTO — $3.4M token sales within seconds in 2017.
Despite the fact that the hype has fallen since 2017, the platform restarted in 2019, and two successfully completed IEOs were carried out in amounts that are absolutely not inferior to the 2017’s ones.
In 2019, the BitTorrent project tokens sold out in 18 minutes, raising $7.2M, while the Fetch.ai project raised $6M in 22 seconds.
EXMO cryptocurrency exchange held the first IEO in Eastern Europe.
Paytomat’s tokensale project took just 99 seconds. Investors bought coins worth $409,000. There were 2013 people on the Сrowdsale page at the same time. The minimum purchase amount was $0.0048, the maximum — $12,051.
Participants had to register at the exchange, deposit the necessary amount in BTC to the account, and after launching IEO, purchase the required number of new coins. On April 4, trading of PTI in pairs with Bitcoin, EOS, and USDT started on the EXMO platform.
This is the first but not the last IEO on the EXMO Exchange; keep informed with the future plans in announcements on the EXMO website.
Platform Huobi Prime held a Crowdsale token TOP. The first 300 million coins were sold out in 7 seconds.
This exchange holds Crowdsales on the Bittrex IEO platform. VeriBlock Tokensale passed in just 10.4 seconds, and the startup has raised $7M.
The first IEO of the MultiVAC project at the KuCpon Spotlight site ended in 7 seconds. 600 million MTV tokens for $3.6M were distributed between 1,661 investors, although they tried to participate almost 10 times more — 16,111 people from 59 countries.
Later, representatives of the exchange found that 67 users violated the rules of participation and bought tokens using scripts, so they returned KCS tokens to dishonest investors and took the coins of the MultiVAC project back.
The failures of completed IEOs:
Unfortunately, the price of some coins from described above has dropped significantly after some hype has stopped, but this not about all the project’s coins.
Many users had not the ability to participate because many platforms do not use the queue format, and assign a certain number of tickets to the users by a lottery format.
For example, the exchange Binance failed: Of the 24,000 users who wanted to buy coins, only 2,758 managed to get a new currency.
Also, many users of the Bittrex site were not satisfied with the Crowdsale, they claim that the offer was closed in just 2 seconds and the sale was accompanied with technical problems.
OKEx users do not believe that IEO could end in 1 second, according to platform representatives words.
Most platforms responded to user feedback and promised to change the details for the following tokensales.
Despite all the problems, IEO is currently the most popular fundraising trend in the crypto industry and it is a way safer then ICO. Unlike ICOs, the IEO mechanism helps to develop higher trust between the token issuer and investors.
The next topic for the detailed review — is Detrended Price Oscillator(DPO).
Just in a week, I will tell you:
- What is DPO;
- How and why is it used for;
- Pros and cons.
IN CRYPTO WE TRUST