OFFER OF INITIAL EXCHANGE (IEO).
The evolution of an ICO market in slowdown
What is an IEO?
The initial exchange offer is a fundraising event that is administered by an exchange of cryptocurrencies on behalf of a chip issuer. A chip issuer is usually a new company that is creating a cryptocurrency as an asset class to raise the much needed capital. This token issuer generally pays to the cryptocurrency exchange a listing fee and the percentage of the tokens sold in the exchange through the IEO.
Advantages of IEO
Given the reputational risk, cryptocurrency exchanges are strongly incentivized to examine the issuer of the token and the quality of its offer. As a result, the IEO exchanges develop a fiduciary relationship with the token buyers while performing the due diligence in which institutional investors traditionally invest. Given the prevalence of fraud in the ICO world, this is a great benefit for token buyers who buy reputable IEOs. Exchanges of cryptocurrencies.
This advantage is access to new and, potentially, exclusive markets, depending on the bargaining power of the exchange.
Disadvantages of IEO
Unfortunately, nothing is free. Chip issuers must bear the cost of the benefits appreciated by the exchange of cryptocurrencies and chip buyers.
Chip issuers are also most affected by the costs of trading chips. These costs can easily exceed US $ 100K and must be bourne regardless of the quality of the IEO exchange on the list.
Conclusion
To ensure repeated success, the IEO exchange must have a multidisciplinary team of engineers, technologists, computer scientists and expert business strategists. These are perhaps the most suitable human resources to evaluate the technical and commercial aspects of the new companies.
Some institutional investors in Korea argue that the IEO is just a temporary fad that is inflating chip prices until the legislation that supports genuine security signal offers (STOs) is passed. However, there are many Korean entrepreneurs who would not agree. They feel that there is a great shortage of fundraising options for new businesses in the republic.
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I think that this is a revolutionary new way of raising funds to promote a new project. Until recently in 2017 many ICOS were the bun, but many of them cheated several people and investors.
This is a new way of raising funds and provides investor security.
"CRYPTOWASI"
You who think about this new way to raise money for a project in development?
