Why Exchange Run ICOs may be a bad idea

[suzanne5223]

It all depends on how the tokens have been distributed. If the majority is in the hands of one person, then there is a high probability that manipulation may occur. If the tokens were distributed evenly between 1000 investors, it should not happen any manipulation.

Like you said it all depend on how the token was been distributed but what you said about the token not to be manipulated if 1000 investors hold the token was not true because if the person which is the highest holder dump his holding it will still affect the price of the token in market. Besides, when the apple co-founder sold his holding have you forgotten that it affect the price of bitcoin market.

Meanwhile, i dont see anything bad in exchange run ICOs but the project team have to create a genuine strategy which will boost the price of the token.

[CleverOracle]

Initial Exchange Offering (IEO) is a new way for any projects to sell their coins via exchanges, it gives some assurance to the buyers or investors that the funds will be hold on those exchanges like an escrow. I see a lot of newly projects doing this kind of thing since the bear market started.

[hihelen]

Initial Exchange Offering (IEO) is a new way for any projects to sell their coins via exchanges, it gives some assurance to the buyers or investors that the funds will be hold on those exchanges like an escrow. I see a lot of newly projects doing this kind of thing since the bear market started.

What will it give to them?

[Olayinka225]

I don't this is true. Hardly have we seen a certain exchange coins been depreciated at all even if the growth is not that significant. But atleast some of them are doing good and some are worth investing.

[yesyes18]

I think that buying tokens on the exchange is convenient. Therefore, I do not think that ICO on the  exchanges is a bad idea. I think that in the future more and more projects will enter the market this way.

Yeah and I also think same because just think about it, who wouldn't invest in a coin sold by Binance/Kucoin/Huobi or any of the major exchanges. At least, it gets better security over there since not just anybody can go to Binance that they should sell their tokens for them. So I think that may be the new initiative.

[Sundaey]

I actually think this is a good way of selling token or coin, more easier and convenient to the buyers. I will really love this if the exchange can play more role to stop scam project by doing enough verification of the project owner and a little about investors of only verify accounts.

[koreacryptofan]

I actually think this is a good way of selling token or coin, more easier and convenient to the buyers. I will really love this if the exchange can play more role to stop scam project by doing enough verification of the project owner and a little about investors of only verify accounts.

The problem with exchanges is that they pay attention little attention to users and have no responsibility. But we need them. So the situation should change in some way.

[Sanford]

  Yes, it is no secret to anyone. They decide what to lower what to raise. Community and conspiracy. Such is the cryptocurrency world. As they say all around fraudsters.

[jupppo]

I don’t agree with you. Seems that you didn’t buy BTT tokens and now you are angry. As for me, I bought them in exchange and sold with 30% profit. It is enough for me, easy money without risks

[martin1221]

So we all witnessed the first major exchange-run tokensale, the BTT tokensale at Binance. Binance has decided to list tomorrow and looking at the sentiments around the reply given, it may not be a good idea for future projects.

Many of CT believe it's just a mere manipulation by whales since they'll always by first. The BTT tokensale had just about 1000 buyers and people think that's where great manipulation will come from.
So how does this determine the future of other similar projects. Now, let's wait to see if it'll be a pump/dump scheme so that we can better conclude.

source: https://twitter.com/cz_binance/status/1090572501476765697

I think this is their strategy to dominate the crypto exchange industry. Forces users of their exchange to buy their tokens in exchange for benefits they can acquire as holders. I don't know if this is a fair practice but as users, you tend to buy to avail these promised benefits.

[CoinsOrDie]

I actually think this is a good way of selling token or coin, more easier and convenient to the buyers. I will really love this if the exchange can play more role to stop scam project by doing enough verification of the project owner and a little about investors of only verify accounts.

Reality is not like that. You will not be able to easily purchase those token at ICO. Look at BTT, no one can buy the ICO. There are only 1000 lucky people and the rest are sharks and whales manipulating it. And the price of BTT has increased 5 times compared to the ICO price, obviously BTT has been manipulated by big investors and we have to buy it at a much higher price.

[Jating]

It doesn't makes any difference, whales have been manipulating the price of every ICO in the horizon so I wouldn't be surprise in this case.

I don't think there can be no manipulation, instead it would help regulate the ico because the exchange will be the one conducting the tokensale. And it could boost the popularity of the coin.

You really don't understand it. How can it regulate or prevent manipulation? Exchanges has no control whatsoever. Just look at those exchanges conducting their own ICO's, all of them are below ICO's price, the bearish sentiments might be a contributory factor, but for me it's pure manipulation.

[iqlimasyadiqa]

It doesn't makes any difference, whales have been manipulating the price of every ICO in the horizon so I wouldn't be surprise in this case.

I don't think there can be no manipulation, instead it would help regulate the ico because the exchange will be the one conducting the tokensale. And it could boost the popularity of the coin.

You really don't understand it. How can it regulate or prevent manipulation? Exchanges has no control whatsoever. Just look at those exchanges conducting their own ICO's, all of them are below ICO's price, the bearish sentiments might be a contributory factor, but for me it's pure manipulation.

this situation almost occurs in most exchanges. this is normal because market conditions are in a bad situation. there are many influences that make the situation negative and therefore when a team developer does not have the power, they will experience a failure, that is, with a decrease in price when listing on the exchange.

[jacafbiz]

There is nothing that has no advantage and disadvantage, ICOs use to raise fund through exchanges in the early days of ICO, Poloniex use to do it and not surprise developers are opting for it now, especially with Binance knowing fully well that it will be listed on the exchange for certain and no need to pay ridiculous listing fee to get it again on big exchange

[various]

Binance does this for the first time and you do not have to join this ICO. But before Binance, this exchange ICO sales had already begun in exchanges like Latoken. This is not a new method for ICO's.

[andor.gellenhidi]

What's the difference? If people spend ICO or the exchange, which not so long ago began to work in the field of cryptocurrency. Do you think this is normal? It seems to me that in general it is not quite normal. Because today it is really a significant problem.

[BitcoinHodler]

not just that but it is also bad for the reputation of that exchange too. simply because all these ICOs are going to live for a short time and then turn into actual shit and when the coin is turned into useless pile of code in user's wallet that is worth zero, they will start blaming anybody who was involved in it including the exchange themselves.

[Bittalk12]

I could say that Binance is not that dumb to agree to sponsor the tokensale without any proper agreement from BTT. I am pretty sure that they are also aware of the pump and dump scheme which could lead to lowering the credibility of Binance so there might be some sort of penalty on BTT side if theu will be unable to fulfill that agreement. Besides, Binance are freezing an account that has a fraudulent activity of pump and dump scheme.

[Erik Goff]

So we all witnessed the first major exchange-run tokensale, the BTT tokensale at Binance. Binance has decided to list tomorrow and looking at the sentiments around the reply given, it may not be a good idea for future projects.

Many of CT believe it's just a mere manipulation by whales since they'll always by first. The BTT tokensale had just about 1000 buyers and people think that's where great manipulation will come from.
So how does this determine the future of other similar projects. Now, let's wait to see if it'll be a pump/dump scheme so that we can better conclude.

source: https://twitter.com/cz_binance/status/1090572501476765697

There were only 1000 buyers and these 1000 buyers caused technical problems on Binance? That is not good news for Binance  .

[Caladonian]

I could say that Binance is not that dumb to agree to sponsor the tokensale without any proper agreement from BTT. I am pretty sure that they are also aware of the pump and dump scheme which could lead to lowering the credibility of Binance so there might be some sort of penalty on BTT side if theu will be unable to fulfill that agreement. Besides, Binance are freezing an account that has a fraudulent activity of pump and dump scheme.

Good point, binance is not that dumb though this idea of catering ico is really a risk for their business, but like you I also see good points why binance
allowed this to happen aside from it's just pure business and there's money that flow after, BTT still above the first offer and those who able to bought
this coin when the offer begins are all happy with the gained that they've got, after this there's chances that we will be able to see more project that
will also offer the same.