Initial Exchange Offering and Binance Launchpad-steemit crypto Academy-S5W6- Homework post for @nane15
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The answers to the questions will be given shortly.
Explain in your own words what an IEO is. 2) Do you consider IEOs an advantageous way to make an investment? Explain. 3) List advantages and disadvantages of participating in an IEO. 4) Explain how to participate in an IEO, for the process explore various exchanges, choose one of them and explain the process. (Please use from screenshots.) (No need to participate, just register, present proof of verified account and explain the whole process, do not use Binance). 5) As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
What is an IEO?
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IEO known as Initial exchange offerings can be said to be fundraising events in which cryptocurrency startups raise funds through a trading platform. In contrast, with an initial coin offering, the company will try to stimulate interest in its idea through its own website.
After China outlawed initial coin offerings (ICOs) at the end of 2017, the crypto community scrambled to find alternate ways to fund new ventures.
IEOs take conducted on behalf of the company introducing new coins on a crypto exchange.
To fundraise on the exchange, the start-ups must pay a fee as well as a percentage of tokens sold.
Following the completion of the IEO, the tokens are published on the exchange, which helps to enhance the company's profile among investors.
Participants contribute donations through the platform that hosts the IEO, as opposed to ICOs, which send contributions to smart contracts.
Among the most important cryptocurrency exchanges, initial coin offerings (IEOs) have grown in prominence.
We can say also that IEO is a method for start-up enterprises to raise funds by issuing utility tokens that grant preferred status to the company on a cryptocurrency exchange platform.
In essence, IEOs are a new approach to crowdfund bitcoin companies using a cryptocurrency exchange as a middleman. Projects gain substantially greater visibility, interest, and legitimacy with the support of crypto exchanges.
The issuers of token pay a listing fee and then an agreed amount of tokens for the use of IEO platform services after a successful IEO. The coins will be published on the exchange soon, giving investors access to immediate liquidity
In brief, crypto exchanges assist in the token sale oversight by ensuring that the project vetting process is thoroughly examined.
Because it is simple to participate in, the IEO has grown in popularity. Rather of conducting on-chain transactions across different blockchains and wallets, the IEO provides a system that allows users to verify a project's dependability and participate in fund exchange all in one place.
Do you consider IEOs an advantageous way to make an investment?
IEOs are carried out in cryptocurrency exchanges (Exchanges) on these platforms, where people buy, sell, and transfer digital assets. Many take advantage of the market's high volatility to generate profits in various ways, and buying and selling is referred to as trading due to the exchange process. Naturally, an asset must be listed on the Exchange before it may be purchased.
They allow investors to purchase a project's token before it goes on sale; once this occurs, the volume of trading skyrockets, and the asset's value typically skyrockets.
IEOs are a very safe investment method because Exchanges are generally reputable platforms that take the time to analyze each project before adding it to their lists. They do not guarantee that the project will float strongly, but they do guarantee that it will not be a scam.
Advantages and Disadvantages of Participating in an IEO.
Advantages
There is a lot of profit potential, the projects offered have a lot of support in general, and purchasing an asset in pre-sale is extremely likely to result in good earnings.
They are quite safe; before listing a project, any Exchange will thoroughly investigate it to guarantee that it is not a scam; if this were to occur, the Exchange's credibility would be jeopardized.
They explicitly state that an investor can participate in, or at the very least wager on, a project prior to its introduction, providing comfort and assurance to the investor.
Disadvantages
They do not, contrary to popular belief, guarantee profit. For example, just because a project is launched or listed on an exchange does not guarantee that its price will rise in value.
Because cryptocurrency markets are linked to the emotions of their participants, they are completely unpredictable. When purchasing an asset in an IEO at a certain price, it is possible that the price will fall.
They are targeted at a small group of people and are more difficult to join in; also, they are not tailored to any type of investor.
How to Participate in an IEO
To take part in an IEO, you must first look for an exchange with active IEOs. It is also strongly recommended that you conduct a thorough examination of the project and be certain of its viability before participating in its IEO.
Though it is well known that conducting research on a project is time consuming, the exchange hosting the project provides you as an investor more confidence in the initiative. As I previously stated, no exchange wants to lose its reputation, thus they will not present any IEO to users if they do.
When you've completed your study or, more likely, agreed to the IEO due to the exchange hosting it, double-check that you've met all of the requirements (lay down rules).
If you've considered everything, you'll need to register (finish your registration by supplying KYC information) and then participate in the IEO by acquiring tokens during the pre-sale period.
Beneath are examples of exchanges;
The screenshot above shows the IEO list.
Binance IEO list
Kucoin IEO list
Bittrex IEO list
Huobi Global list
How to Participate using Huobi
i) Firstly I started by accessing the page via the coincodex.com website then I clicked on the first coin there.
ii) I clicked on the first coin and then I saw a page were I was asked to visit the launchpad which I did.
iii) After that, it brought me to a page I was asked to sign up
iv) There were places available for my data which I inputed, a verification code was sent which was also inputed and then I signed up.
v) After signing up, it brought me to the page were it was successful below.
As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
BitTorrent
Project: BitTorrent
Token: BTT
IEO Platform: Binance Launchpad
End date: Jan. 28, 2019
Funds raised: $7.2M
Price at IEO: $0.00012
Current price: $0.001248
ROI in USD: 940%
Information about the Project
With 100 million monthly active users from 138 countries, BitTorrent is a well-known file-sharing initiative. BitTorrent was bought out by TRON in July 2018.
TRC-10 tokens run on the TRON network, and the BTT token is one of them. Its objective is to encourage practices that promote better file sharing, such as using faster networks and allowing for longer seeding times.
IEO Information
On January 28, 2019, the IEO took place on Binance Launchpad. The first session was for buying tokens with BNB, Binance's native token, and the second session was for buying tokens with TRX.
The TRX session received 35,640,000,000 BTT, while the BNB received 23,760,000,000, accounting for 6% of the total token supply. The TRX session lasted almost 15 minutes, whereas the BNB sale lasted 13 minutes.
Controversy Encountered
Many consumers had multiple issues and were unable to participate in the offer. On the Binance website, several issues occurred, Captcha did not work properly, and service notifications appeared, preventing potential investors from purchasing tokens.
Conclusion
A token sale overseen by a cryptocurrency exchange is known as an Initial Exchange Offering (IEO). Although some IEOs may take place on many exchanges, they are only available to the exchange's users.
IEOs, like ICOs, allow investors to purchase new cryptocurrencies (or tokens) while supporting innovative crypto projects.
Because the exchange's credibility is at stake, IEOs attempt to promote only legitimate projects. As a result, the vetting procedure is more thorough.
Thank you for this opportunity. I humbly await your response and corrections.