In just over a year since it became popular, IEO (Initial Exchange Offering) managed to replace ICOs (Initial Coin Offerings) as the fundraising system of choice for a majority of blockchain enterprises.
Why Are IEOs Better Than ICOs?
Compare this to ICOs, many of which copy and paste existing whitepapers, create fake founder LinkedIn profiles, and then advertise to unsuspecting investors using Google Adwords.
IEOs on Binance Were Best performers for 2019
Binance Launchpad, which launched in 2017 just to become mainstream in 2019, has had many successful IEOs, including Matic Network (MATIC), BitTorrent (BTT), Celer Network (CELR), Fetch AI (FET), Bread (BRD), and others.
Besides, the platform supports all sorts of languages and devices, making it easier to invest in IEOs regardless of where you are.
Other Top IEO Platforms For Investors
The evolution of raising money in the crypto industry has undoubtedly come in the form of Initial Exchange Offerings, and in the list below, we’re sharing the best performing IEOs that are giving Binance Launchpad a run for its money.
1. Gate.io Startup
Gate.io Startup offers an initial exchange offering platform that also offers an opportunity to purchase blockchain assets at a discount. As a result, its offerings come with three distinct labels:
As of 2020, the startup has already launched over 40 offerings, and all the projects seem to raise substantial amounts of either USDT or Gate.io’s native Gatechain (GT) tokens.
In terms of raised capital, it’s most successful offering was the initial sale of Crypto Neo-value Neutral System’s tokens (CNNS). The offering raised 3124% of its goal and got 112,484,289 USDT in total – a substantial sum for a new crypto project.
In April 2020, Gate.io’s IEOs still have net positive average profitability, thus making the platform a great option for IEO investors.
2. OK Jumpstart by OKEx
The average return on investment (ROI) on the OK Jumpstart platform has plummeted to approximately -20% as of April of this year, but this can be attributed mainly to the adverse price action resulting from the March 12th market crash. The average all-time high ROI on OKEx’s IEOs is more than 570%.
All in all, the platform checks all the required marks to be one of the top IEO platforms – a reputable, easy to use high liquidity exchange, powered by top technology and credible team.
Currently, the Bittrex IEO platform is negative in terms of profitability. Despite that, the platform remains a competitive IEO platform with many hot projects on it.
New Entrants Help IEO Market Expand
Some IEOs Have Been Disappointing for Investors
IEOs were supposed to be the darling of 2019, offering blockchain projects a more streamline fundraising method and faster liquidity, while providing investors with a convenient way to invest in early-stage tokens.
According to BitMEX, unless IEO investors unloaded their positions once trading began (which we can assume many did), then they have likely lost money. Of the 12 IEOs analyzed in the report, only 4 of the tokens are currently trading above their offering price.
What Are The Advantages of IEOs?
Here are the main advantages of IEOs.
For investors:Lower risk: When investors participate in an IEO, they can be sure that the crypto exchange launching the sale is guaranteed to list the token, which that isn’t the case with an ICO.
Greater security: Top exchanges like Binance typically offer superior security precautions to those offered by smaller projects.
For Projects:Increased visibility: IEO Projects that ma to get their tokens listed on renowned exchanges like OKEx often enjoy more publicity and visibility along with instant access to a large pool of potential investors.
For Exchanges:Increased customer base: Facilitating an IEO usually helps crypto exchanges attract new customers and expand their user base. Increased revenues: Exchanges usually make profits on deposit and withdrawal charges when investors participate in IEOs.
Despite some cases of poor performance on the open market, IEOs have proven to be an easy and low-risk way for projects to raise capital without offering up a large portion of the total token supply, with the typical IEO bringing in around $3-8 million.
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