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Not all Cryptocurrencies are Equal: IEOs Touted as an Innovation

Cryptocurrency continues to grab headlines following its major milestone of eclipsing the $1 trillion global market cap mark. Chances are you have encountered numerous stories of early adopters investing in digital assets to generate huge returns and ProBit Exchange can provide just what you need to jumpstart your digital investing success.

IEOs (initial-exchange offering) are a significant innovation in the digital asset space and enable you to invest in promising new projects vetted by ProBit. This includes quality tokens primed for a breakout including SKEY which secured $1.5 M during their IEO on ProBit Exchange and has mooned nearly 10X to the delight of investors who were able to grab a handful during the popular IEO sellout campaign.

The crypto market is still percolating with an expectant growth and investors be excited about its bright future. After several years skirting the financial markets, cryptocurrencies have captured widespread interest and credibility. This will continue, particularly as geopolitical uncertainty and risk have investors seeking greener pastures in the form of alternative currencies.

We’re here to quench your curiosity and set the record straight regarding the what’s, whys, and how’s of cryptocurrency investing. Let’s start by defining the terms “token” and “altcoin” that have been thrown around so often these days.

So what’s the difference?

Altcoins are most often referred to as any coins that are not Bitcoin. The first notable altcoin was Namecoin, which was based on the same algorithm used by Bitcoin and also capped by a circulating supply of 21 million coins. The majority of these altcoins have a fairly high capped supply of coins to ensure steady value, as a low cap could pose an entry barrier for investors. Numerous altcoins claim to have a more developed model of Bitcoin but generally share a similar underlying framework. Each altcoin is created to serve a different purpose or remediate a specific problem.

Some altcoins, however, do not use the same protocol as Bitcoin but instead rely on their own native blockchains, such as Ethereum and Ripple. Tokens created and distributed in Initial Coin Offerings (ICO) can vary widely in structure including Store of Value tokens (Bitcoin) and utility tokens, Simply put, tokens have a wide range of use cases such as governance rights, staking protocols, units of value, and more. This gives token creators unparalleled infrastructure to develop their unique value propositions.

Dig deeper and determine the real value

As Benjamin Graham eloquently said in , “you must thoroughly analyze a company, and the soundness of its underlying businesses, before you buy its stock.” Fundamental analysis is a sound strategy to incorporate when investing in digital assets.

Before diving headfirst into your next investment, be sure to consider key questions to address its feasibility and long-term prospects. These questions should get you started on the right foot when doing your own research. (DYOR)

  • Why does this business model have a token in the first place?
  • What is the core utility of the token in their business?
  • What would drive the value of the token?
  • Does the token address a market need and does it display potential for adoption?

It is worth doing your due diligence and analyzing potential investments beyond just technical analysis, especially when incorporating these cryptocurrencies into a long-term investment portfolio. Whether or not you want to throw all your money into Bitcoin or explore other options like Ethereum or IEOs, do your research and develop a refined perspective of your own.

Ok, I get it. But where should I invest?

IEOs seek to address common concerns and issues with ICO’s while maintaining flexibility and transparency for prospective investors. IEOs are essentially ICOs that are managed by ProBit and other exchanges. We do our due diligence to ensure the investment process is fair and honest and in theory, drives value for investors. ProBit Exchange only lists promising, qualified, and deserving cryptocurrency projects.

As ProBit manages the sale of new IEO tokens, investors can access immediate liquidity once a token is listed across our markets. Compared to ICOs which could take months if not years before trading options are available, IEOs are a breath of fresh air.

IEOs also enable investors to purchase coins with significant bonuses in several currencies including KRW, PROB, USDT, BTC, ETH, and XRP. Users holding native token PROB are afforded the biggest bonuses to highlight one of the key benefits as a holder. The funds received are stored with the same high-level protections that ProBit Exchange uses for processing transactions.

Are IEOs the future? Possibly. What we are certain of, however, is that IEOs offer a more sensible, reliable, and accessible approach for investors than its ICO or STO counterparts.

Decentralized Finance (DeFi) has been trending in 2020 in both the crypto sphere and with regulatory agencies. This nascent niche has created opportunities to decentralize traditional financial systems and has recently enabled crypto projects to raise funds via DeFi protocols, known as an Initial DEX offering. (IDO) While we may see a partial migration to DeFi in 2021, IEOs, due to their regulatory and trust benefits, remain as the preferred investment avenue in the crowdfunding space.

In addition to standard IEOs, like Carnomaly, the ProBit Launchpad is a premium IEO platform where new exciting IEOs, such as DYMMAX, are conducted following an extensive vetting process to onboard highly promising prospects for investors. Coupled with our frequent airdrop reward events and exclusive IEO launches, ProBit has myriad avenues to grow a promising crypto portfolio.

Let us know your two cents regarding the viability of IEOs in 2021 and beyond.

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ProBit Global

ProBit Global

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ProBit Global is a Top 20 crypto exchange worldwide providing unlimited access to trade and buy Bitcoin, Ethereum and 600+ altcoins in 1000+ markets.