Top platforms to launch an IEO on. Platinum Q DAO research team bet on BTCNEXT.
For a long time, it was generally considered that health deteriorates when the economy loses its potential and improves when it strengthens. To proof this idea, Ogburn and Thomas conducted research in 1922, which uncovered positive relationships between economic activity, total mortality, and several specific causes of death. However, the 21st century has also proven that those entrepreneurs, who turn what seems to be an unending stream of difficulty into an advantage, emerge stronger and more successful. That is exactly what happened to the blockchain industry and crowdfunding mechanisms. We are going to explain this evolution.
With the emergence of social media, like Facebook, Twitter, and the rest of blogging platforms, the development of crowdfunding has literally skyrocketed. To be more precise, it simplified the process of communicating information about crowdfunding projects to potential investors and possibly converting social capital into financial capital. The social network eliminated the need for traditional supply chain intermediaries, thereby expediting the information exchange process.
Despite the fact that recently created crowdfunding platforms allowed startups to bypass banks, venture capitalists, business anger, and even public financing regimes, subsequently increasing transparency and traceability, there were still some core issues that needed to be addressed.
First, most of the crowdfunding projects were limited or restricted, to a determined region or country. Secondly, the crowdfunding participants did not expect any reward or return on their investment. In some cases, contributors could get a t-shirt or an acknowledgment letter. Doesn’t sound very fair, does it? This win-lose situation required an “upgrade” or a substantial change in the nature of crowdfunding campaigns. With the creation of blockchain technology, it was a matter of time before a new “win-win” mechanism was translated into reality.
The history was written in July 2013, when Mastercoin conducted the first token sale, also known as Initial Coin Offering. One year after, Ethereum raised 3,700 BTC or $2,3 million in just 12 hours. Even though, it took around 3 years for a huge bull run of cryptocurrencies to start. With the growth of the Ethereum platform, many projects were able to run their very own ICOs on top of Ethereum. Hundreds of startups came to the market, seeking funding, and most of them actually raised the required amount of capital. But, as we know today, over 75% of them were scams and money grabbers.
According to a study conducted by the New York-based Satis Group LLC, only a meager 8 percent of the floated ICOs manage to reach the trading stage on the various cryptocurrency exchanges.
“While ICOs, cryptocurrencies and the technologies that power them may hold great potential for legitimate innovations in capital raising and financial markets, it can be a challenge for investors to verify information about these products to make informed decisions,” said FINRA in its investor alert. “The markets for digital assets continue to display high levels of volatility, involve speculative risk and the potential for fraud.”
ICO is the past, IEO is the future
It is not strange at all that people lost their faith and trust in ICOs. Everyone thought that the concept of crypto fundraising is dead and almost nothing can revive it, but humans would not be humans if they gave up so easily. Thus, a new method of raising capital was invented, an Initial Exchange Offering. The basic idea behind this tool is to solve ICO’s trust issues and protect investors from potential scammers.
As the name suggests, Initial Exchange Offering is administered on a cryptocurrency exchange. In other words, this exchange acts as a counterparty between contributors and a token issuer. Unlike ICOs, IEO founders pre-mint all the tokens and send them directly to the exchange they are working with. Together with tokens, startups normally include the terms and conditions for their IEO. It can be a maximum attribution per person, KYC/AML procedure, fixed price per token or something else.
Thus, startups can save costs on developing a specific platform for an IEO and attracting potential investors from zero, as exchanges already have a large customer base. Contributors, in turn, are protected from being scammed, as cryptocurrency platforms revise projects before listing them. Keep in mind that it is cryptocurrency exchange’s reputation, which is on the table, so if something goes wrong, they will be the guilty ones. Therefore, the exchange may decide not to facilitate the IEO if there are some doubts or red flags.
Check an IEO platform before signing up
Investors should always keep in mind that nothing can be 100% secure. For example, the vast majority if not all exchanges mainly benefit from listing fees, and the IEOs can attract new users together with new capital. One should only remember the recent scandal with Quadriga CX where they have been the subject of legal proceedings relating to the loss of $140 Million worth of cryptocurrencies. It was also reported that the company used fake bank accounts in an effort to run an “insider trading operation”.
A list of platforms for launching IEO
Currently, there are over 10 exchanges that allow conducting an IEO on their platforms. Let’s go ahead and look at them:
- Binance Launchpad — a pioneer in IEO field. Most people don’t even know but it started operation in 2017 and became mainstream in 2019. It has been already used by projects like Bread, Gifto, Bittorent, Celer, Fetch.
- Huobi Prime — the second cryptocurrency exchange after Binance which managed to perform successful IEO with Top Network project. They completed their first selective token sale event in a matter of seconds, with token prices surging by 250% immediately afterward.
- OKEx Jumpsmart — another leading exchange by trade volume, that didn’t want to lose “the train of opportunities” and also joined the IEO trend. “The news was made public by OKEx CEO, Jay Hao through his Weibo account as a response to the many questions addressed to him asking about when OKEx will have a utility token platform like Binance and Huobi.”
- Probit Launchpad. Up to date, three active IEO’s are taking place on this platform. They are seeking to stand out from other small-scale exchanges proliferating the market with their IEO support. By the way, a few IEO cases have already been hosted by Probit, among them: Spin Protocol, CharS, Wegen, and others.
- Exmarkets has more than five active IEO’s.
- BTCNEXT, a fast-growing spot and margin trading platform designed for both fresh and professional traders, also offers IEO launchpad. They have just completed their first IEO for Opiria, a large company, working with BMW, Nissan, Mercedes Benz, and Intel, in just several hours and collected 106,250.00 USD. During the next round, BTCNEXT collected 126,000.00 USD for Opiria. Next IEOs to take place at BTCNEXT are IEOs of Q DAO family stablecoins by Platinum Q DAO Engineering. These stablecoins are backed by Bitcoin (as well as another top 10 digital assets in the near future) and pegged to various national currencies, including USD (USDQ stablecoins) and KRW (KRWQ stablecoin).
It is important to mention that If you conduct an IEO on BTCNEXT exchange, you receive the IEO module by Platinum Q DAO Engineering as a bonus. This IEO platform enables projects to easily accept crypto and fiat from investors, manage stages of fundraising and marketing campaigns, and process KYC/AML. The platform covers all the stages that fundraisings have and offers more than 1,000 supported currencies.
Moreover, BTCNEXT proves to be focused on 24/7 responsive customer service and seek to build trust relations with all of its users that may help a lot.
As you can see, IEO is currently the most progressive tool of fundraising in which restrictions are minimized, investors are protected and startups are assured that their token will be listed. All of that will eventually play a positive role in both the crypto industry and markets.
BTCNEXT is a highly secured exchange, offering attractive fees (0.010% for all transactions), bonuses for large-deposit customers as well as easy registration. Here, traders win from using USDQ, a fully decentralized stablecoin driven by algorithms and smart contracts. This stablecoin is highly reliable, Bitcoin-collateralized and free of “legacy finance”. Enjoyable 24/7 customer support in Telegram (English, Japanese, Korean, and Chinese). Trade effectively with a clean interface, a full stack of technical indicators, and fast transactions processing. For more information, visit their website and follow them on Twitter, Instagram, Telegram, Facebook, Medium, and LinkedIn.