Bitcoin Forum

IEO which in full means initial exchange offering is not a new topic in the crypto eco-system. Long before Binance Launchpad, several projects have taken that path to raise funds for there project by offering the native currency of their platform to traders on exchange. I remember observing a few on mercatox some years back. It was definitely no big deal as at that. Today IEO has become a menacing rave in the crypto-space owing to the fact that majority of the ICO in time past have failed to list on reputable exchange for investors. regardless of the hype and uniqueness of a project,  securing reputable exchange with good trade volume is key to the liquidity of digital assets and sad to say it today's crypto investors don't want to wait for products. They rather sell the hype than wait for the long term yield that will accompany this project gaining real-life application.
The impact of this IEO model proposes three debilitating factors on the blockchain community.

1. Lack of widespread distribution of nodes and monopolization of the. Today's IEO model literally plays into the hands of whales. With the likes of bittrex favoring high purchase by a single user. It's not hard to see whales controlling the valuation of these upcoming projects cryptocurrency on exchange. Asides from prices, centralization of nodes can be dangerous as it can lead to treats on the network with respect to mining. A Single-user acquiring a subset of the network can be catastrophic.

2. The IEO mechanism does not truly favor long term growth of this project. Now it's important to note that the majority of these coins sold on exchange are bought not by investors but by traders who actively trade on exchange. Majority of this traders do not no a thing about this project and will dump at the slightest profit or in the face of the slightest loss. Some might say it's part of the market cycle. Weak hands selling to stronger traders but it's key to note that community is very important in crypto compared to other market and it's almost impossible to build suck around traders who do not care or look towards the success of this project.

3. This exchange is also doing too little to protect the interest of participants who take part in these IEOs. In my opinion, it shouldn't just be about raising funds and meeting Hardcaps. These exchange should take up more roles. Some examples I picked up from the Pledgecamp project concept includes. Strategic disbursements of funds raised during these IEO events based on achievements of milestones, certification and other pre-agreed terms all design to ensure this project doesn't just bail off with people's money or fail to develop products that can attract value to the native currency.

In conclusion, a lot more tinkering needs to be done in order for IEOs to continue to flourish and promote the growth of the blockchain community. If steps aren't taken to prevent these impacts, we might see the IEO trend failing just like the majority of ICOs have failed.

Excellent analysis, i share many of the same opinions and sentiments about IEO as you've vividly expressed.

The best effect of having this IEO offering is pushing our investors back to try again to play buy and sell. Since the market turns in red everything get collapsing. Investors decrease day by day and the good things made by IEO was showing that world of investment is still alive.

I think I support this point of view, IEO has brought some form of thrill to the market but just like this post pointed out I think it could be catastrophic In the long run if not properly regulated.

Its an important issue you've raised. Crypto is a new economic frontier and there had been new experiments every time.
But with IEO, failure of them would also affect the exchanges, their credibility and trust. Though exchanges do make sure to state they are not involved and risk remains about investment, people would not view it as so.

Yobit is one of the exchanges that do an IEO in the past, and they are still doing it now, but Yobit has a bad reputation and so are those projects that they do an IEO, this is thr latest craze in crowdfunding, until now I haven't saw a failed IEO, they are performing well in the market.

Exactly..From last year till this year exchanges looked like the only thing that was working In crypto..With some becoming highly reputable and attracting interest from all over the world. I just hope this trend won't end badly with scammers infiltrating the IEO system as a result of these exchange not doing enough to safeguard the interest of IEO participants both during and after the sales event..

They should it's still in its infancy, what happened to ICO is like a domino effect, once scammers go to the picture, everything follows, they should ensure that only the best project can get in, it's a win-win situation for the exchange, the project and the whole community.

I am not worried about this, because investors will definitely buy and hold their investments until they are successful and of high value, traders will accompany them by buying and selling to get a return for them.
Crypto will evolve to look for the best for it, ICO, ITO, STO and now the IEO, let the market look for the best system for crypto trading

I also believe that this initial sale of coins on the top exchanges will not bring new projects popularity. I will say more, this new trend in the market of primary supply of coins makes bad projects. People buy their coins not because the project is good, but because they know that it is possible to make money instantly, it is not correct and this approach will kill new projects.

it looks like you are very serious about analyzing IEO weaknesses and what you say is indeed very important to prevent the same failure as ICO.

indeed the IEO is currently quite famous, many investors are interested in joining. but there is still a lot of homework to improve the IEO to be better than ICO.

Many people have been unhappy with the way this exchange conduct IEO . They do not put the customwr at hearr. Most atimes the customers end up not buying a single token due to the facr that must of this IEO are being sold out to whales before the IEO day. Its important that this Exchange put customer at heart and treat all customers fairly

Very true,  the risk of whales manipulating the prices of this IEOs, is too great and the fact that the rules put in place excludes the engagement of small scale investors doesn't speak well

It is evident that IEOs may get basterdized soon as many people have suggested because it has now become a manipulative tool for exchanges to pump and dump their native coins on people. With time, as the negativity spreads and get more members of crypto populace unhappy, IEO will be dead

Yes, right, with the market IEO recovering and investors returning to trust it with investment, I am also very happy with the current IEO trends, showing new changes.

Since IEO has been introduced this year I haven't seen any failed IEO that refused to meet there hardcap ,im so thrilled about IEO and I'm sure that this is just the beginning ,I'm only worried about bounty hunters because popular IEO projects has no bounties so far ,only the mediocre ones launched bounty

For me the impact is positive and it will remain positive untill exchanges and platforms only list quality projects, i will not like if they start listing bad quality projects as well just for the sake of raising funds i think if that happens that will be very negative for the crypto ecosystem.

Yep. The impact is completely negative for the ecosystem. Today nobody watch a project, only exchange and sale details.

I want to believe that all projects listed for IEO are completely vetted by the exchanges before approval is granted and even though these exchanges have a clause saying that "they are not part of the development of these projects" but its important to note that, they have in a way linked themselves to these project by accepting to partner with them in terms of the IEO.

I share some of the views raised by the writer, between the IEO's and ICO's the big trade-off is that the IEO's are offering native tokens of reputable exchanges but the big challenge is the fact that they all are adopting a particular system that seems to favour only whales who in their view they see as strong hands, forgetting that most of these whales are in it for the money and care little or less about the projects visions or targets but rather are in for instantaneous gains. Now to compensate for that I believe like you rightly pointed out that these exchanges should structure these IEO's to accommodate as many investors as possible by factoring in big, medium and small investors that way the future of these tokens are more in the hands of a greater majority of community members as such monopoly of the project by few whales is reduced. I also believe centralization is another challenge they should work against as we have so many times talked about in our crypto space.

Great points, these IEO are now exchanged new cash cow, they should do everything they can to protect their interest,  if they are just going to go for a pump and dump project and the project that they are going to list doesn't have anything to offer to the crypto world, then they are worse than ICO.

Hmm I even heard some of this exchange buy back the coins themselves that's why many people don't get to get any during the event.. The buy and pump it themselves,then dump on traders....very disheartening..

One of the main advantages of IEOs is trust. As the crowdsale is conducted on a cryptocurrency exchange platform the counterparty screens every project that seeks to launch an IEO on its website. Exchanges do this to maintain their good reputation by carefully vetting token issuers.

Therefore, IEOs can eliminate scam and dubious projects from raising funds via cryptocurrency exchange platforms, and it becomes much harder to scam contributors with IEOs.

In as much as I share your view on these negative impacts, I don't agree %100 with you. From the look of things, it's positive impact outweighs the negative. Only top exchanges are coming up with IEOs, this gives the project a credible reputation and thus able to pull in more investors into the cryptosphere. These projects also form partnership with these exchanges and this partnership of trust instantly becomes a key part of the value proposition and benefit to all parties, including investor and even traders.

The blockchain community by now should be getting used to trends. Just like every other trend the cryptocurrency ecosystem has witnessed I think this phase will pass away too.. People should just enjoy the ride while it last and get ready to exit once scammers begin to perforate the IEO mechanisms.

This just made me remember how many times Yobit have failed yet they were one of the first exchanges. I turn to agree with you for the fact that since the Launch of binance IEO,  there have not been one that have failed but yet there are more to it that we are yet to see.  

IEO have restricted a lot of potential but low jncome earners from participating due to some of their minimum contribution factors stated, e.g minimum deposit,  verification process on exchanges etc

Also more of this investors (whales) turn to control the market hence they project states decentralisation as their core motive

To add the developers can in turns dump the tokens on investors since they are mostly allowed to send all tokens on to exchange

I will say the arrival of IEO's benefit is temporal and limiting a lot of individuals and that in the future it is dangerous  

IEO is not entirely a new concept or crowdfunding model, it has been existing for a while now albeit on less popular exchanges. However, it became more popular with the entry of Binance and other top exchanges. These exchanges are leveraging on the trust and reputation they have but over the years to support crowdfunding for new blockchain projects and their customers expect that they would have done due diligence on the project before agreeing to raise funds on their behalf.
That said, the major demerits asides the ones you have listed are that few people tend to own a high number of the coins/tokens enabling price manipulations by these fee whales, even while the project is yet to have a product. With more exchanges launching their own IEO platform/launchpad, it's evident everyone is just in for the money. This model of crowdfunding will become saturated soon and unappealing, hopefully the project developers won't drag their name in the mud along the line.
In all, it's not good for the blockchain development in the long run because there is no community backing, so developers are not answerable to anyone and may rogue on the exchange that supported them early. Additionally, as we know that core of blockchain is decentralization, with exchanges holding IEOs, the more it becomes ironic.

In my opinion, the IEO rave is just a mirror image of what cryptocurrency has resulted into.. Which is a get rich scheme. I heard people are setting up centers for buying into this IEOs just like we had in the days of Lending coins. The exchange makes it even worse by allowing a single user buy such high amounts . There is a total lack of transparency in the entire process and a lot of shadiness behind the scenes.. This Model of fundraiser is definitely not ideal for the growth of the crypto ecosystem..

I think that IEO is an interesting option but does not changes that fact that many new projects simply don't have innovative and concrete ideas, that's the main problem that most project have and I really hope that some good project will come out so that investors can really come back to this market.

I think IEO bring positive effect for crypto currency, and start making trust again for investor who already losing it,  and be prepared guys, bull run will come very soon.

IEO is something most hyped now, because of Binance with their successfully IEO that makes other exchanges follow them. Just enjoy these waves, it's a good time to multiple your money. I raised a lot of money while joining FET and CELR IEO...  8)  ;D
But make sure you are only choosing the right IEO before investing...

Big effect for IEOS and make ICO project will be dump because many investor always interested with IEO and have sold out just few second, many platform make IEO and have lower interested for investing on ICO.

My worry is that most of this exchanges ought to also think outside the box just like CZ has done so that it will bring about healthy competition....take for instance Kucoin copying the same lottery format binance has just introduced for their next IEO says it all.....Bring different ideas so there will be healthy competition because now all I see is this will bring rivalry amongst exchanges and it’s actually not healthy for this fragile near bull run market.

The way the trend is going now I really don’t see it lasting long because investors will come to realize that this exchanges are doing this for personal gains holding up almost percentages of the coins and releasing it to few peeps considering the fact that we can’t even see the transparency in all what is being done by the exchanges only for us to hear that sales has probably ended with few seconds.....I don’t really see it stand the taste of time because those that probably got in believes they are 100% sure of making atleast x5 of their investments while other investors coming Afterwards will start thinking of twice of buying ATH

A lot has been lost to fraudulent ICOs, since only vetted and seemingly good projects will be featured on IEOs, IEO is fit for the modern clime. However, exchanges need to work on the demerits and focus on ensuring that a vast majority of prospective investors take part in the IEO.All IEOs need is regulations and I believe exchanges like binance and Huobi are making new rules, others will follow soon.
Moreover since IEO is more sure than ICO and IEOs are listed automatically, many investors prefare them to ICO. Many ICOs are still struggling for listing even after several months of completing  ICO while others don't list at all.
Again with the ban of ICOs in China, Chinese investors and others can partake in IEO since its legal and done in exchanges

You can visit my thread on all you need to know about IEOs for more info https://bitcointalk.org/index.php?topic=5128008.0

I am in support with majority of the points raised in this thread, but i will like to ask, in what ways can a single user owning a large portion of the supply of a cryptocurrency affect the blockchain network?..

To me ieo is nothing new, as it had been going on the cryptocurrency sphere for quite some time now, the only rave about it now is that it's been offered by exchanges who have a lot to loose if the ieo fails, its just like the ico rave of 2017, for now people should enjoy the ride but do it with caution

It just makes sure the ICO that we used to have has been vetted by the exchange as well, it just drops one aspect of the research. We always invested ICO's and hoped that it would be listed on a good exchange, now with thanks to IEO we know that it will be listed there sooner rather than later, some IEO get listed right after the IEO is done, some a bit later but all of them will be listed eventually.

Knowing that gives a breathing room for investors and they know that what they funded will open to trading soon and thanks to that they will probably not lose too much money. Whatever enters the trading realm on exchange usually drops a bit first (the initial dumpers) but usually recovers after couple of weeks and IEO makes sure that period is over with quickly.

This is where those who invest in IEO need to be careful. Not all is worth investing in, just like it happens to other forms of investments.
It is good we already have exchanges who would not want to taint their image and will be careful of the project that comes to their platform.

I think majority of you guys speaking bad about IEO are only doing so because u failed to buy. There is nothing wrong with IEO and this mechanisms of fund raiser has come to stay.

IEO really always closed in very short time  ;D. Actually there is no need for people to speak bad about IEO if only because of that reason. After listed on exchanger we still have chance to trade it right?

IEOs are having a great influence on the whole industry. It has shown that people want to invest in crypto currencies, they just need a more secured way of doing it. But you are right about the mechanism, it should be done in a better way, so everybody would get a chance.

Agree, although many IEOs are successful and sold out but this does not guarantee that other projects can also be successful, there are many factors that can make a successful IEO project and of course the capital strength of devs. is an important control.

Agree with your opinion number 2
With IEO , team and developer just focus on market only. when their IEO success and its gone , they don't care about the project, as long their coin listing on exchange then its done. the new coin/token just about profit and listing market. Project will no longer be developer and team priority

The one critical question that need to be asked is ‘is crypto all about exchange listings’ since this is what most investors are afraid of with Ico’s.....Well due to the fact that most projects Ceo’s are no where to be trusted with investors funds as most have shown in recent past about eloping with funds meant for project development which tends to derail the issue of project development thereby stalling the one major problem we are facing in the crypto world which is mass adoption

There is 2 side for this IEO.
the good side is the IEO system can minimalize scamming and fraud from developer and team
and the bad news like you said on first page . i'm not agree at all but for first thing it can be manipulate by whale (Actually it just happend on bittrex) while binance and another still make limit for user to buy IEO

if we talk about the long-term impact it is clear that this can affect the crypto marketcap because there are many new investors who buy. IEO is becoming popular now like ico in 2017. That year we can see ATH. if this is according to my predictions, we will once again see a big pump next year.

For now I don't see much impact that IEO has to make in the crypto space, since it's just a safer method of collecting funds for start up, I think the price of this coins in the market will still have to be determined not by the amount of funds they raised or the amount of investors who made purchase of the IEO but what the project have to deliver to a common investor who is not so familiar about the blockchain.

The only good impact I know that the IEO market makes is that it is controlled by exchanges thereby building trust around.

The no.2 point seem to be the most disturbing at the moment. If we want a truly decentralized ecosystem, them IEO are not the best option,Binance require purchasers to have at least 100 BNB before they can participate in its launch pad.that effectively cuts off the poor.There need to be a review if we are to have a healthier ecosystem

Now I see sense in why most of these IEO projects gets sold out easily, they don’t really value low investors, and that is why Binance could even go to the extent of placing minimum buy of $1600 on IEO project, how will whales not control the market, when they are the ones given chances to them, if they give chance to all whales alone, then let us see who the whales will manipulate, probably they will start manipulating themselves including the so call exchange and not the innocent investors.

Several times I have also made people understand that for the fact that the project is an IEO doesn’t guarantee that it still cannot be dumped too. We really need more than IEO to solve all these challenges in crypto.

Completely agree with you. IEO at the moment is just a hype which allows some lucky people to earn easy money. The only thing the project gets with IEO is a listing on a famous exchange - no real community which will support it in the future.

IEOs are a good choice for earning in a short time. Because, as time goes by, coins sold in IEO will return to the price it is worthy of. Binance's good vision is the reason that triggers all those.

IEO is a fast way to get a coin ICO that sells coins or tokens through an exchanger. And in its implementation, the IEO can end success and failure depending on the interests of the buyer. If an Exchanger has large volumes such as Binance and Kucoin, then there can be a lot of buyer interest in the IEO. The negative effect, maybe buyers do not know what projects they buy coins.

Yes, the IEO does not sell the project, but the IEO directly sells their Tokens on the market, and this IEO will grow even if it is in a large exchange like Binance, because many IEOs are successful from the Binance exchange.

Perhaps investor dont know much about the project but reputable exchanger already research about the project. Big exchanger like binance must be wont put their reputation on bad project and thats why IEOs held by binance always sold out in just a second

Not only Binance gain success on IEO, Kucoin, Bittrex and Huobi gain success launching their IEO. I think IEO will change the game and replace ICOs in near future. It will attract more investor because IEO promising big profits after start traded in market.

IEO is a new trend this day after ico lossing its hype. IEO is a great things come to us since it really give profit for everyone who bought the coin before the day of trading. Its really profitable since people are seeing profit and not selling below the token sale. And what more is IEO was supported by exchanges so less risk than giving your money in very anonymous transaction

I think, IEO does not bring sustainable development for Cryptocurrency, It's just a games of whale, exchanges ... Most people who participate in this game will be badly damaged.

I agree that mechanism should be changed, because it has become impossible to take part in an IEO. People are using scripts and multiple accounts that are able to buy tokens within seconds. I think Binance and Huobi are working on making it better now.

I agree completely with this school of thought. Today CZ of binance was ranting over fake volume on exchanges.  This exchanges are doing everything possible to attract investors to their IEO at all costs. Transparency and accountability is completely lacking in this IEO mechanism and this will negatively impact the crypto ecosystem if it continues like this..

You have done a great analysis on IEO,I agree with you because that is the truth,it is just difficult for so many greedy set of people to admit it.We share the same sentiment, i also created a post on it.

Well, yeah that is true. If you do not have potential in a project, IEO will not be conducted. It is always the vetted assessment of the exchange that your project will have to pass through and only then you can avail the benefits of IEO. It ensures safety when it comes to investors putting in funds. I think that IEO will benefit the crypto enthusiast more.

I believe into exchange operators to take care of checking the potentials of projects. If they will be failing in this, then IEO will face the same fate of what ICO had faced in the times of 2018. I guess, everything will go smooth and perfect now as we are in the early days of IEO.

IEO bring money to dried up ICO system.

But is that good for crypto-ecosystem? One of the biggest problem we were facing that money was pouring icos which worth nothing actually. And that seems to be over and now they can still get money thanks to IEO's but is that a good thing?

It will take time and there will be a project that did not fulfill its promises or were fraudulent. And the exchanges will start to lose their face.

For sure exchanges have an interest in holding an IEO. I have absolutely no doubts that all this stuff is paid by projects. Because holding an IEO on Binance guarantees its listing and a sold out. And when only listing costs 5 million USD I cannot image the IEO price that the project is paying.

Well firstly i find that IEO is a new innovative way in crypto space. However there is always pro and cons on any new idea, i believe the cons that is explain by you can be quite true but recently i heard from my friends is that they are able to make some profits from IEO at the moment though.

Unlike other system,  cryptocurrency and blockchain technology proposes a decentralised system in which data is distributed across the nodes in order to maintain the immutability and integrity of the system but in a situation whereby one single entity controls so much of the nodes,  security is no more guaranteed, data can then be doctored and that will spell doom for such projects..

The renewed interest by investors is definitely good but just like the post pointed out there are some inherent issues that need to be tackled unless more harm will be done than good on the long run

That's why the exchanges need to seriously take the credibility and reliability of a project developers into account. By helding an IEO the exchanges is also betting their name for it. If the projects are to scam people the exchanges will have the impact too. I guess all those exchanges are already know this and is already have a handful of solution.

The concept of IEO is actually a good one and would go a very long way in sanitizing the system of crowd funding using blockchain technology if managed very well, but unfortunately too, in the planet we find ourselves, human being would always take advantage and misuse an opportunity that would have left a great positive mark in the crypto world.

I agree with you that it can be hijacked by whales which exchanges themselves too might end up being the whales since they have access to the larger portion of the token, the intention of the initiator might not actually be for this but has the system gained wide recognition, the whales may have seen the loop holes too and taken advantage of it. That is why we need an exchange that will do their business with integrity; this is the only way out.

Agree on many of your concerns but the main benefit from IEOs is that they are filtering out scam projects which caused the biggest problems to the ICO market and for the investors.. Without regulation on ICOs this is an advanced solution ( ICO 2.0 ) of course still not perfect one.

IEO helps company that wanted to be included in cryptocurrencies or to have their own crypto line much effective in sense that they will be listed already in exchanges. Its a one step advantage than running an ICO.

Ofcourse the world of investment is still alive, but the problem of this IEO is there's still so many problem regarding the sale, problem of the site right after IEO started caused by too many participants attempt to buy and the site become overloaded. There's also so many people using script and bot to participate, just like on Kucoin Spotlight, it's so unfair.

Although IEO is guaranteed by exchanges, the risk from the IEO is still huge. Don't think the IEO will help you x your account many times. If the exchange does not have a separate coin, they will not pump the IEO. That is a waste. Look at bittrex as a bad example.

I agree with you, IEO has a big risk, especially nowadays more IEOs are implemented in large exchanges but the tokens are not clear, we should also need to be careful when choosing IEO projects

I agree, thats the best thing that IEO can help in the crypto space. Investors are back investing in some projects again and we can see that the market is recovering. But the thing I dont like about this IEO are there are some shitty projects that still become successful because of the hype on IEOs.

There have been many kinds of evolution. From the first ICOs with reputable escrows (do you remember that?) to IEOs, it is an ever changing world.

Very well said mate. I think IEO investments are still quite a risk and still should be avoided for the fact that most large investors have larger parts in the coin distribution. Even if it's a promising coin with a listing after the sale. The dump is always there to pull you and makes you a large loss.

Last one week almost five IEO was success with sold out just few time, we don't know how many IEO will be success at the future and will be bring big effect for ICO become lower interested and scam later.

I agree with this completely. IEOs are more or less whales puppet. Check out that of Bitrex, veriblock to be precise, it performed terribly on listing , I can assume two things. (1) Either majority of ythe coins where purchased by the exchange (2) The developers bought their coins themselves and dumped immediately on unsuspecting traders.

as far as I can see the most felt impact is the increasing crypto marketcap. and will increase for price. for investors, I don't think there is anything new. all the same as last year nothing has changed.

The IEO gives new hope for the community, I'm sure for the long term there will be many impacts that can be felt

I wonder why the ICO escrow system is really not solving the challenge of ICO scams but looking at escrow, it can only protect the user against not receiving coin but has no effect on whether the coin becomes useless to its holdlers or not, and this IEO project might end up same way too.

Because, I think the only solution IEO has brought is still to protect investors against ICO scammers but I don’t see much it can do in the areas of shitcoins, a lot of projects being raised by IEO will still end up becoming useless in the long run if the project teams and advisors are not up to task, they need to be very hardworking to keep their project active, So the success of the project still lies with the owners.

The impact of IEO in crypto world is very highly positive, it has return the once lost trust back to cryptocurrency investors and om positive the trust will stay longer than ICO did

Of a truth the IEO mechanism  might have it's nefarious effects on the blockchain community but  it has really rekindled the interest of investors. Many may like to speak negatively but provided the mechanism continue to provide a means for more investors to enter the blockchain space with more certainty and assurance of getting to invest in reliable projects,The IEO mechanism remains ideal for the time being.

The impact of cryptocurrencies grows every day so making false assumptions against its development will not stop this process. Constantly changing circumstances can leave so many sings on token sales and that's why we see IEOs on the crypto sphere.

In the last days there was a view that some exchanges thyself can buy tokens during the IEO, for hype surrounding their exchange.

There is no point you can reject the potential IEO has inducted in to the crypto space. I think that the major part of the risk in case of ICO has been eliminated upon the arrival of IEO and it will keep on thriving the system.

Moreover, only one IEO was cancelled by an exchange because of the termination of a deal between the startup company and agreement was a vital aspect of that project which was no more there so the exchange cancelled it which means that an investor is not going to spend his money in a white paper.

I see some good impact to project from IEO, but it is momentum impact. IEO will not live for a long time, I think this kind of offer will kill the projects.

Well, people running exchanges are human too, and they have the right to also invest in any coin that they feel will benefit their company, it’s a good thing too that they believe in other people’s project because if they didn’t, they would not have been a part of people HOLDING it, although I heard lots of rumors that these exchanges do these to create FOMO that will quickly make the token get sold out and dump the remaining one they have bought on the market, thereby still crashing the price of the coin a bit, but even with these, most investors are praising IEO for what it has done for them.

Thanks to IEO we have growing interest to crypto currency in general and I think it will be the same as ICO sucess.
A new fresh blood is going to invest in crypto currency and as a result we will gain out of it

Thanks for this post, you really analysed it well. IEOs are meant to help the crypto space grow but if care is not take it might lead to terrible loss to most investors. So it will be wise if the main motive about IEOs are maintained and improved.

With how things are progressing with IEOs, I don't personally believe that the original motive will be maintained and improved.
Many new exchanges are following the trend and are building their own launchpads, which will turn into chaos later on.
This will be a new playing ground for scammers, cheaters and the likes. They will find a way to lure the exchange with their plans.
Small and big time investors should be intelligent enough to identify potential crap from the real ones.

This will be the death of ICO. I know some who's had ICO, then switched to IEO later on. I'm not expert so I don't really know the big implication of of doing the token sale over an exchange platform. But I see a lot of centralized exchanges incorporating launchpad on their platforms.

My problem is that some of this exchanges are putting up rules and practices that are unhealthy for the crypto space.. The threat of centralization is growing and carelessness in terms of product development will grow.. Since project now fill listing on an exchange instantly after the fund raiser is an award on pass mark .

All the points raised here are genuine. Though IEO raise up the dying spirit of investors to try cryptocurrency investments again especially when there's an opportunity of direct liquidity for their investments. But if we look at it deeply, it might not be that good for the long-term image of the industry especially when some of them later turn to scams which will surely happen because I don't think the vetting procedure of most of the exchanges is elaborate

I understand your point of view but I believe exchanges are just playing a small role in this ecosystem. ICOs or IEOs are basically the same thing, but exchanges are also in between in IEOs. That's the only difference.

IEOs are an exciting new fundraising mechanism and have attracted lots of attention, but will probably remain focused on niche projects for now. Additionally, the main point of the IEO model is not the underlying merits of any individual project, but the financial engineering they enable with exchange tokens. By wrapping these functions together, IEOs can increase demand and utility for the exchange token, which could affect price in a drastic manner. The crypto space has no shortage of financial engineering, and IEOs are a perfect case study.

Almost everything that comes with a booming effect in the crypto space tend to gradually fade off if care is not taken.

F most investors start noticing the lapses in IEO or is the disadvantages outweigh the advantages, they might start opting out and begin to consider another model of investment or retreat back to ICO.

To be fair to IEO and its managers, The invention of IEO Launchpad  has really done a great job in winning back the trust of investors on crowd funding, which ICO scammers almost destroyed, and I think most people are so wise now and not like Dogs that goes back to its vomit.

Until ICO projects are being regulated, I don’t think much investor will look at it again, the next direction that they might be looking at is that of STO if IEO fails, but I think the exchanges are strong enough to keep IEO active for a very long time, especially the ones being handled by reputable exchanges. If we still then fall victim of scammers by not following the rules, then we should be held accountable and not IEO.