Hello. GBT Communities,
Long-time to see. It’s Keunyoung Yun, the developer at GBT Protocol.
Suddenly the autumn comes, I hope you do care not to get a cold.
Then let’s start today’s posting!
The topic of today is ICO, IEO which you may hear often, if you are interested in investing cryptocurrencies.
What is ICO?
ICO is the abbreviation for Initial Coin Offering which is how funds are raised for a new Cryptocurrency offering
The crypto company released the white paper which explain their project, roadmap and direction of development to get investments in BTC, ETH, EOS and etc.
They collect the investment and distribute their coins to investor as a compensation.
There are 3 ways in ICO investment.
The sequence of investment is Private Sale > Pre Sale > Public Sale
and each sale has different rates of bonus.
Private Sale is mainly for institutional investors and there are some limits but the rate of bonus is highest.
Pre Sale is literally Sale which opens before Public Sale which is lower rate of bonus than Private Sale.
Public Sale officially opens for public so everyone can participate but the rate of bonus is lowest among others.
However, there are some risks in ICO.
Investors decide whether they invest or not simply by the company’s white paper and vision.
But when the company is a so-called scam and flee away then investors just lose all of their investments.
Because of that risk, many people start to consider ICO as a scam.
IEO is invented as an alternative.
Then What is IEO?
IEO is the abbreviation for Initial Exchange Offering.
Unlike ICO which get investment just by the white paper,
The project which does IEO conducts sales through Exchanges with at least an MVP(Minimum Viable Product).
(It does not mean listing the coins, the exchange helps the sale and distribution of coins.)
One of the advantages of IEO is that it is possible to prevent scams because the exchanges mediate the sale of tokens.
Therefore, investors have less pressure to invest.
Also for exchanges, they can increase the reputation of the brand when they succeed in the coin sale.
So today we briefly talk about ICO, IEO.
Next time, I will bring another interesting posting about Blockchain!
Please stay tuned till we become Blockchain Masters!!
Monthly report for September is just released, please refer to the link below.
Homepage : https://gbtprotocol.com/