Why are all the new IPOs managed by exchanges?

[Bizmark13]

It used to be quite common for an IPO/ICO/ITO to be managed entirely by the dev and done directly in the [ANN] thread. For example, Stackcoin, NXT, Qora, and Reddcoin.

Now it seems that most IPOs are managed by exchanges like C-CEX and Bittrex. What is the reason for this trend?

[wakasaki96744]

scams and things like dev's not coming through on their side (run away with the money, etc.). When NXT became well known after it's release, the Alt-Coin forums became overrun with fake [ANN] IPO's that were made to trick people out of their money during times when escrow wasn't used.

Exchanges became like a middle party/pseudo-escrow in it. At least that's how I understood it.

[celebreze32]

Yes, it's because there were so many scam IPOs. A common trick was to allow escrowed investments if the investor paid the escrow fee, but also give a bitcoin address for direct investments without escrow. Direct investors thought they were getting a better deal by not paying an escrow fee, but they were the one's who got scammed when the dev ran away with their money.

[Bizmark13]

Well if the purpose is to minimize the impact of scams then it doesn't seem to have worked. Recently, a coin called Magnetz announced its IPO through C-CEX. The dev didn't put up a buy wall like he promised and dumped his coins on everyone in the market. I wasn't directly affected but it's sad to see such things happen.

[stellar1]

How do you know the exchange is not doing what certain devs were said to be doing earlier ?

[unusualfacts30]

There are certain IPO still being held by Dev.

Zift, Allstars are few examples.

I think it's easier to hold it on exchange because trading goes live fast once IPO is over.

[klf]

Yes, it's because there were so many scam IPOs. A common trick was to allow escrowed investments if the investor paid the escrow fee, but also give a bitcoin address for direct investments without escrow. Direct investors thought they were getting a better deal by not paying an escrow fee, but they were the one's who got scammed when the dev ran away with their money.

All investments through IPO's are risky, and that's why the rewards can be massive. Sometimes you lose, and sometimes you win... see the guys Nxt

[foxkyu]

It used to be quite common for an IPO/ICO/ITO to be managed entirely by the dev and done directly in the [ANN] thread. For example, Stackcoin, NXT, Qora, and Reddcoin.

Now it seems that most IPOs are managed by exchanges like C-CEX and Bittrex. What is the reason for this trend?

i think it's way to prevent developer to scamming people
that's why most ipo are managed by exchanges
even though it can't be guaranteed

[fast2fix]

It used to be quite common for an IPO/ICO/ITO to be managed entirely by the dev and done directly in the [ANN] thread. For example, Stackcoin, NXT, Qora, and Reddcoin.

Now it seems that most IPOs are managed by exchanges like C-CEX and Bittrex. What is the reason for this trend?

well i think ipo are hosted on exchanges so that people feel more confident and secure to buy the coins.

[razen489]

Exchange can act as middleman third party.

[var53]

It used to be quite common for an IPO/ICO/ITO to be managed entirely by the dev and done directly in the [ANN] thread. For example, Stackcoin, NXT, Qora, and Reddcoin.

Now it seems that most IPOs are managed by exchanges like C-CEX and Bittrex. What is the reason for this trend?

well i think ipo are hosted on exchanges so that people feel more confident and secure to buy the coins.

That was the reason IPOs started to be done on exchanges, but even those held on exchanges often turned out to be scams.

[bobc1994]

exchange are simply a platform upon which an essentially free market can exist.

[moko666]

to avoid fake IPOs
and for easy and automated distribution of the coins purchased through IPO

[ClownHunter]

exchanges are simply a platform upon which an essentially free market can exist.

i concur

the exchanges provide a platform, thats it

[Twipple]

Maybe because exchanges act as an escrow and are able to distribute the coins there and then.