QPay announcing its IEO
Published in
2 min readApr 22, 2019
Following the massive ICO craze that emerged in 2017 and the subsequent drop-off latter half of 2018 has made the crypto space swirling with numerous questions among investors and enthusiasts.
ICO in a nutshell can be described as a crowd funding formula which raises the money for the specific project to grow further. But this formula also raised the questions of it's legitimacy as just between 2017-2018 80% of ICO's conducted were identified as scams and people are also moving away from ICO's now days.
Meanwhile Initial Exchange Offerings (IEOs) have emerged out of the crawling pace of ICOs over the last several months in the hope of few advantages over the traditional ICO.
There are few noticeable differences between the two. First we must take a look at what actually is an 'IEO' ?
Well, IEO can be described as an improved version of ICO which is run through an exchange and the exchange works as the intermediary for the IEO. It's considered as a safer route than typical ICO's which generally begged the question about it's authenticity. But as IEO's are run through an exchange, one can certainly take a leap of faith regarding the reliability around the exchange. Exchange generally takes few steps more prior of running an IEO about the legitimacy of the project, product and it's team so that nothing comes after it's already been launched and can harm the exchange's reputation in any possible way. There's also few passive benefits for the IEO conducting exchange as well. More often than not while an IEO is underway on an specific exchange, the hype around the project also effects the exchange in a good way. The exchange gets more traffic and exposure. Moreover a big chunk of the total investors for such IEO's becomes a regular for the exchange. Which has proven to be beneficial for both parties.
