Bitcoin Forum

I know that there has been hype all over the forum on IEO projects and we trust them because they are being guaranteed by exchanges, most especially top exchanges. Now the question is, what does exchanges do differently that makes them certify that a project is not a scam project and have a reliable team or that the project will stand the test of time?

Well as i read on some topics Binance will review team and ask what they want to do with their project, for other IEOs on a other exchanges i don't know how safe is to invest, but we will have to see what people say and on what exchange already they buy on IEO and if is ok.

I think the IEO for fraud is very guaranteed, but for parts that have a reliable team and the project will survive, of course I'm very insecure and unsure because we know that the IEO doesn't all produce ROI, look at the example IEO that appeared before this hype happened like Gifto (GTO ) and Bread (BRD) had once reached ATH which was terrible but look at the price for now

They must have several tests and reviews to ensure that the project is serious and not a scam. It's something very important especially for high reputable exchange since they don't want to list scam coin and make traders lose their funds.

But still, there is no guarantee that the project will give certain profit for investors. Exchange just wants to help investors to invest on a reliable project though.

I heard that the exchanges hold part of the funds raised, so if the IEO project is fraudulent, they will not be able to hide with all the money. Also, exchanges have large resources and can carefully check the project.

I believe they will have access to certain things that we, the general public might not know about. In my opinion, backing a project to be viable is as good as putting their reputation on the line and I don't believe they'd do so if all they did was just read the whitepaper. An IEO was the reason I got to discover a rare gem (http://bit.ly/2K0GUby) in the industry and after doing my due diligence on the said project, I fully have decided to pay more attention to IEOs.

IEOs in reputable exchanges have high possibility that they are not running a scam as that exchange have already done their part of screening those projects. And yes, they will not risk their reputation in promoting a possible fraudulent project. So these exchanges are already filtering the projects for the investors. However, IEO in small exchanges might be a different case. But still, if you are an investor, you should do your own homework also and not entirely relying on the exchange.

large players such as finance, for example, value their reputation very much and, therefore, projects without prospects and with incomprehensible people at the head will not allow IEO to be held. So in this regard, you can relax. But small exchanges, most likely in the wake of the HYIP, are shoving any projects under the holding of IEO in order to make traction on their stock exchange coins.

What exchanges do differently about IEOs is that they do their research with due deligence to make sure the project have what it takes to succeed and the exchanges set standard for IEOs to be conducted on their launchpad which they can never compromise

Each IEO is being reviewed by team of the exchange and that's what the great thing in here. Exchange got the chance to review it not those shitty review ico like ICObench that was paid by projects to make their ratings go high. And it clearly misleads everyone.

and yet we can still see a declining value once the trading starts. these projects are not free from potential dumps of the investors..
 an investor should be very careful in selecting his projects and should know when to exit. otherwise his fate will be the same like in ico mess

Most importantly it reduces the chances of being scammed as you mention. But when you are doing it in. reputed exchange like binance, you are getting free promotion among thousand of binance users.

I guess it's about their own standard, we don't even know what certain criteria they set to explore with these projects. And they are liable to anything because they are the one that guaranteed that the project is good. Investors believe they have good standard for these projects they conduct IEO.

Actually an exchange conducting an ICO isn't necessarily emphasizing that they're scam-free project. In fact, the disclaimer agreement and T&Cs say that anything can happen with your money. But yeah, exchanges perform better screening services to make sure they list only "trusted" projects other than what we had on ICOs before anyone could sell anything to anyone at anytime and run away with the money.

You are right, there is no guarantee of a successful IEO project.
even though a popular exchanger held an IEO, I was afraid that the IEO would only be used when ICO was abandoned. Finally, the IEO only produces shitcoin which is popular at the beginning and eventually dies.

Nope, I don't think IEO only produces shitcoin, but I agree most of the result is the same, the main difference is that they are automatically listed on exchange than normal ICO projects. Listing never guarantees project development, but with that a project has an access to capital market and it's useful whenever they need additional funds for development. I do believe, even there are a lot of bad projects produced by ICO/IEO, there are also good project that are waiting for a good time to develop useful stuffs for our future lives.

There will be proper KYC also proper analysis of project . Exchanges will not risk their reputation simply by supporting some random projects .

I guess it is a bunch amount of researches, KYD (Know your developers), due diligence, and many more that can be done by exchanges team.
When we are doing our research and due diligence, usually we doing it individually. But in exchange, they can do with their procedures,
and can be done using many peoples of the team, usually in top exchanges because there are many manpowers.

It's for sure that the exchange will perform a KYC but for the developers, in order to prove the legitimacy of the project i guess they need a demo about their product, but investing in STO is much safer compare to IEO, in my opinion, because the project is regulated it's like hybrid of stocks and ico, and they can't really scam their investors because the government will go to their way.

Most of the trusted exchanges says they have a dedicated team to research about the project and they select among several different applicants. But to some extent, all they do is list the highest bidder. If they were so sure about the project, they are capable of buying it till the hardcap but they just let their users buy them generously.

they helped us alot with their analisys in project for IEO in their exchanges.our job decrease alot and we could spend our time to learn tehnical analisys or anothere trading skills.i am very happy when binance launch IEO in their IEO.it give us big opportunity to earn profits.

As you know most of ICO's was scams that the reasons IEO are growing ,most of exchanges are have good rank and some of them have low rank so  always buy tokens from high rank exchange .

Firstly, it offers funds security to investors putting hard earned fiat into a cryptocurrency project and secondly, there is an assurance of listing offered by the exchange. These factors are enough to motivate investors

I will also read through for these answers cos I too really want to know. Apart from being sure that the project will list on the exchange, what else. It's just best to verify projects, not just investing cos IEO is mentioned cos some exchanges that conduct these IEO only care about their own profit, not really on if the project is scam or legit.

They are the one to review and make research on the project!!!
they are the one to make sure that the investment will be secured!
they are the one who will mange the sales which will be better than what we are having now!

The exchange of projects with coins which is based on the basis of the IEO project is really unusual, which is often projected by operators who are on the basis of exchanges that have been so enduring with market conditions that these prices have often dropped, but their systems cannot be made investment that is really very true in this project

Before accepting the project IEO, the exchange in question carry out their own research and verification, so that they can know for sure who the team is and what they are up to.
Also, after successful verification, the exchange then helps to promote the IEO the best they can. The advantage is, there is no case where the team will run away with investors funds.

Exchanges does a different thing by guaranteeing that the project is not scam, this is to safeguard their users while maintaining their integrity.
On the other hand, in my own opinion I don't think that exchanges will guarantee that a project will stand the test of time, as this solely depends on the team and how effective they are.
Most team can start well, develop good products, but along the line they might miss out and the project will fail. This is the reason why major exchanges always delist coins, at least Binance does that. Binance list good coins, then why delisting one day? Maybe the team have failed to deliver or constantly improving their platform.
So the tendency of a project lasting long term depends on the capacity and capabilities of the team.

I think most of the exchanges offering IEO services usually carry out a due diligence on the project before they start advertising it on their platform thereby increasing awareness and trust.

I think if the stock exchange sells tokens, then it initially checks the project for fraud and it is not profitable for the project to turn out to be a scam in the future as it greatly affects the stock exchange's reputation. Of course, everyone understands if there is no major investment to spoil the reputation of the stock exchange and, accordingly, the stock exchange will not develop.

It's simple that big exchange can't sell themselves with projects of only a few million dollars. Look at Binance 2018's financial revenue, they profit hundreds of millions of dollars

Many crypto users invest their monies in crypto for the profits they are hoping to make in return. Since the exchanges guarantee listing, there is a hope that they will be able to trade their coin sooner and cash out their profit.

It is not as if the research that exchanges Cary out is the perfect one, but because of the past records of most of he exchanges that allow IEO to be done on their platforms, they are being trusted by the users and are now putting their integrity at stake for such project. I just think before they do that, they would have carried out intensive personal study on such project, such as kyc.

As far as I know, not all IEOs register their coins/tokens in top exchanges.
In fact, there are many IEOs projects that are listed on some not-known exchanges.
Basically, the effect of exchanges tends to be large for the success of coins from these IEOs.
Although not all of them can avoid scams, at least some exchanges require verification of data and KYC (possible) for the process of passing the listing in the exchange.
Of course, in this case, we as investors do not immediately just believe it.
The continuing analysis must still be done starting from the project concept that is in the Whitepaper, the team, the community, as well as the chosen exchange and trading volume.

They often offer additional package of listing the tokens as soon as they fund raising has ended,they already have wallets integrated into their exchange so part of the job is already done .This give investors Tue confidence that they are not buying some tokens that never get listed(as we had a lot of those in 2018). Also,reputable exchanges often demand so minimum standards for project to achieve before using their platform. This helps project team to deliver better project so as to meet such standards

In my opinion the most important thing is to see who made the IEO, if it is a big exchange that has good credibility and reputation then I can say that they will not commit scam because if they do then their exchangers will be at stake and they may not want do that because even without scam, they can get a large income from their own exchangers even every day

If it's not in a trusted exchange, it will still look simply as a ICO then been listed in exchange fast. It's good to be listed in exchange already since some old project still unable to find exchange where their coins can be listed. But now that they start in exchanges what we need to think is how long that project can last in the market as well their team and goals in the future.

The main thing in IEO is where everything is transparent. I am not talking about some shit exchange, I only care about the Potential exchange's IEO! This is like live trading where you can buy the token from the sale and you will get your tokens within 7 days! Everything is fast in IEO! An exchange helps a project to catch investors as a partner, exchange distribute the tokens, not the project team! And token will be listed on that exchange too! It is like every big thing will be done through the exchange and that's why it's called Initial Exchange Offering!

IEO listed in exchange platform is actually a guarantee, that the token will be listed and traded in that exchange after the sales completed.
Also we can avoid non legit ICO that can turn into a scam ICO after they got revealed by others.
So, it is better to buying some IEO token because you can trading it later with a good volume in the exchange.

That's the point, the main selling aspect of why IEO seemed to be more legit than an ordinary ICO is the fact that it's listed by the popular exchanges meaning that they have been inspected by the exchanges, that includes document, developers identity and many more.
It's not a rocket science that more people will definitely put the trust into IEO rather than ICO, however whether the project will be succesful or not that's an entirely different matter.

Only big and good exchanges are to be trusted on IEO to some extent. For now, I have great respect for binance, their past IEOs are performing well in terms of trade volume and haven't given investors a headache. Some exchange usually helps their IEO projects to make some stylish marketing and they sometimes create hyip around it, when buyers can't buy at the initial stage, they wait for trading and they create another round of FOMO, forcing the price up.

IEO are not totally safe, but they are just safer then ICOs. I mean they got backing by exchanges means that they have an extra layer of security which ICO lacks. So they may be better then ICOs but they still are not a guarantee of safe investment.

Big exchange will definitely support good and potential projects. Because they do not want a stain on their clean achievements.
If it is me, I will also check the project to see if it is eligible to be listed on exchange.
that's why ICO projects are now dying so much and it seems that no investor wants to invest in it anymore. The IEO will be a smart choice.

I am also wondering that is there any guarantee that a project launching just IEO on exchanges is a real project and it will be listed on exchanges? I think there is no guarantee. Any project, genuine or fake, can launch IEO just like ICO and there is not like that launching IEO will provide a certificate to any project that it is a genuine project. IEO is like ICO.

indeed, there is no guarantee that projects that carry out fundraising through the IEO will actually do their work after completion. at least there is a guaranteed tokens market after the fundraising period has finished, and minimizes the potential for fraud and scam. I am sure the exchange has terms and conditions that must be passed if a project wants to collaborate in raising funds through exchange.
do not prejudice. let's support ICO to IEO improvements.

The different thing between ICOs and IEOs is exchanger administered the sales process. Exchangers with good reputation must be choose to maintain their reputation by only list good project on their launchpad. This makes investor or customer more trust to join in IEOs

IEOs from big exchangers more interesting because offering quick profits when start listing on market. To find the project running, its need time because build and fill their roadmap is not easy.

One thing that you should know us that this exchanges has great reputation, and selling tokens for a scam project can drain that reputation to the mold because nobody will ever believe what they say anymore, this is why the exchanges have to do extra work by making research on the project and making sure that the people behind it are genuine by carrying out kyc for them before approving their project for IEO, so as not to destroy their reputation for a project they know nothing about.

As you know IEO trend is growing due to dead of ICO's and IEO's are growing due to investors trust on exchanges ,so always buy from good ratted exchanges.

Its about the standard the exchange has set for themselves, we don't comprehend what certain criteria they set to investigate with these cryptocurrency projects. Also, they are obligated to anything since they are the one that ensured that the project is great. Investors trust they have great standard for these cryptocurrency projects they lead IEO.

Anyway projects can even now observe a declining esteem once the trading begins. these projects are not free from potential dumps of the investors.. and investors ought to be cautious in choosing his projects and should realize when to exit

Exchanges use there TRUST to gain investors for IEO projects they introduced on there platform thats why investors prefer IEO over ICO ,for exchanges its more like putting  their REPUTATION at risk

Exchanges do not do anything special to find these projects, just have a team of analysts who study the technical documentation of the project, get acquainted with the management team and give them the opportunity to convince that the project is profitable and will work. I think that the process is similar to a meeting with investors who need to be convinced that the project will be successful.

Definitely big exchanges like Binance, Kucoin will do lots of due diligence so they can be sure of the authenticity of these projects as any report of scam may dealt a blow to their reputation.. In contrast to some bad exchanges,  they wouldn't care as all they are concerned about is their own gains.

of course to be able to make IEO sales at binance or coin, there must be requirements that must be done by the project. and that will keep their IEO in good quality and a little risk of scam project.

Exchanges have the opportunity to communicate with the project team and discuss its readiness, prospects and training of specialists for the implementation of the plan. I think that the solvency of the project for listing on the top exchange plays an important role, if there is confidence in the seriousness of the team and confidence in the success, then such a project gets to the IEO.

Exchanges need to sell their tokens and attract new users. Therefore, IEO make advertising for the exchange. Also, the exchanges  listing fee. This makes IEO very profitable for exchanges.

it is true that the IEO costs a lot of money because they use an exchange platform for marketing strategies for projects that are offered, therefore it is better to use the IEO strategy on large exchange platforms such as binance exchanges.

I will say they provide more for them than when they ran their ico independently.  The ico lacked a lot of things mostly security and trust from the investor and the ieo made the investors Trust the exchange so the exchange provides a sort of regulation on the project to protect their users.

I don't know, but at least the IEO is better than ICO because there is a certain guarantee that the coin will enter the exchanger, and that investors will be interested in crypto

I think they have to do verification and auditing starting from the team background, company assets, and maybe everything. so they can prove that the project is real and not fraud.

https://icobench.com/thebench-post/301-the-key-advantage-of-an-ieo

Some exchanges like Binance do one on one meet up, proper screening of team to ensure there ain't scam and product valuation. We investors can only do Lil about team evaluation, the top exchanges will go as far as any length to make sure their name ain't dragged to the mud.

Please give me a list of IEO coins that are still alive today!
all fell and in the end only benefited the market, investors were trapped by the popularity of Exchangers while coins continued to be thrown away.

IEO was better than ICO ,and also you will trust IEO because the listing exchanger was putting their name on it so if it will gonna be scam the people or the traders of them will de decrease or the trust percent will be down.

Most IEOs are pure garbage just like ICOs, only difference is they are connected to sketchy exchanges that will do anything to make a quick buck.

I will not be investing a cent in any of these new IEOs.

They can do nothing. No one will ever know. I think all exchanges are corrupt and even Binance is no exception.

This kind of thing is really liked by everyone, because if a fraud occurs it will both suffer losses, both the exchange and the dev from the coin, so IEO is trusted by many people to date.

But will you change you mind if its binance that will be doing IEO? I'm sure you won't be considering the exchange as sketchy.

I don't really see the difference of that these exchanges will be doing to verify whether the team that will be doing IEO isn't a scam. If they say they visit the team's office and then gaurantee there is someone to file a case in court if something happens.

Don’t trust IEOs (https://coincodex.com/ieo-list/), even if they are on exchanges such as Binance. Listings can be bought. Make sure to do research before, it’s still same as with ICOs, especially on the less known exchanges.

Let's start with the fact that the market began to lose the confidence of investors and for the fact that most of the projects became fraudulent and there was a need for a solution offered by the stock exchange and I think it is right that the stock exchange will not sell the tokens of the mohennic project as this will affect investor confidence in the stock exchange itself.

well for big exchange like binance, i think they will ask first what the target/roadmap about the project, they dont list any coin carelessly.
we already binance delist BSV because the founder claim he's satoshi and that make no sense.
but for other exchange i dont know, we already see some IEO from bittrex  and the results is disappointing.

I think before an IEO can take place on an exchange, especially the top exchanges, there must have been a thorough background check on such project and competency of the team. If they allow just anyhow project that might turn out to be scam, their own reputation will also be at stake which I believe they not want that to happen.

Can you explain why? I do not think that IEO are things with dubious nature like we had ICOs back then. IEOs have actually made things pretty transparent and this is a good sign for the crypto market. In case of ICO, the fundraising would be administered by the project team and the FR would be conducted on the website of ICO but in case of IEO, it is very transparent and is done by the exchange alone.

Alright, Finally I can see the difference between IEO and ICO here.
So, is there any bad impact on the Exchanges if the IEO project finally failed in the end? I am very curious about this.

IEO is a new way to get good profit now a days as many exchange are not in to ieo instead of developer conducting ICO which has reduce the level of scam in crypto investment now.

Binance is using this model to promote its coin by using a lottery ticket for every participants that has a certain amount of their token for lottery ticket .

But many other exchange dont have token but still conduct ieo on basis of using btc or ETH .

So with the kind of volume on binance it has help it to pump its coin to first ever coin to reach new ath after a year.

I think you have not joined any ICO before. Because There is a big difference between ICO and IEO. Especially after binance lottery system, the way to join the IEO is completely different.

They list it right away, that is the advantage of an IEO, if you do an ICO then you are investing into a coin you have no idea if ever goes to any exchange at all but if you do invest into an IEO you know which exchange it will be listed right away.

Sometimes a coin that has an IEO will not be listed anywhere else ever, or maybe for months, first IEO's still has coins that hasn't been listed anywhere else but the reality is at the very least it is listed at one place. That is why people invest into IEO's a lot more, they get the coin, they wait until its listed and as soon as IEO ends and they can list their coins for sale they do it right away trying to make a profit. Sometimes they do, sometimes they don't but in the end at least they have that possibility.

IEO concept that relies on exchanges guarantees investors to be able to interact directly in the market, in general, this will make investors more comfortable in investing, and security will also be guaranteed with IEO listings on several Exchange, if the token already exists in the market then the possibility of tokens to die will be very impossible.

To be honest, I have seen many IEO achieving its hard cap within seconds and minutes and this is because people trust IEOs and they see margin of profit in the investment they make in IEO token sale. I am talking about IEO on the best exchanges and yeah one more thing, IEO makes you as an investor face the lowest risk and that is what an investor out there look for.

For example, in exchange for doing the IEO and IEO, fraud will certainly have an impact on the exchange. People certainly don't trust the exchange anymore so doing the IEO is a guarantee that fraud will not occur because the offer is an exchange. Therefore the IEO in exchange for not doing the IEO carelessly.