IEOs Emerge As A preferred Fundraising Alternative As The Crypto Spring Sets In

The world of cryptocurrencies is abuzz with a frenzy of activities right now as markets witness a price surge.

The bandwagon effect of Bitcoin has spread rapidly across the board, and my tokens and coins are seeing a flurry of green shoots.

Enter IEOs

Apparently smarting from the less-than-desirable end of  ICOs last year, many entrepreneurs in the crypto scene are now looking to initial exchange offerings instead of an ICO.

 The mere mention of ICOs generates different responses. 

However, with the assurance of a great reputation, Binance has led the field in hosting more IEOs seen so far this year.  

On Binance, the launchpad is the avenue for projects to be evaluated and given the nod. Successful projects are given the exposure and opportunity to raise funds from users of Binance.

The Binance playbook for IEOs is open to all and sundry, but only a few get the nod. This places a responsibility on project promoters to do proper homework in order to come up with a winning proposal. 

Primarily, the basic requisites for an ICO also apply to an IEO. There is a basic need to come up with 

  • A whitepaper
  • A winning underlying project
  • Token allocation plan
  • A background team.

Some of the projects that have received plaudits so far from Binance are Matic, bread, Gifto, fetch.Ai, and Bittorent. They have made it to public space courtesy of an IEO.

So far, Okex, Bitrex, and  Kucoin have announced plans to support IEOs. Somehow, a little known exchange in the Middle East known as also hit the market last month with an IEO for a brand known as EAO. 

From the buzz generated, it does seem like it was successful. Whether the project promoters are genuine and worthy of trust is a different issue entirely.

The Implications

With IEOs finding acceptability in closed spaces like exchanges, they could attract better scrutiny and a greater chance of success. 

However, unlike ICOs that became an all-comers affair, it is expected that as the crypto spring takes shape, more bankable projects will be seen in the IEO space.

For the savvy investor, the rules remain the same. Always scrutinize a project before investing your money.

Find out the team behind it, look at the unique selecting point, and never decide based on hype. To your good fortune!