Advantages and disadvantages of IEOs

[CryptoLogo]

The reputation of the exchange strongly influences the interests of coin buyers. However, I think this is a temporary phenomenon, just like the hype around the ICO (in 2017).

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[bartolo]

The main winners with this new model are the exchanges. They charge a fee to carry out the process and they get new customers since investors need to register in their platform to participate in the IEO. In addition, we are starting to see how people need to buy the exchange's token to participate in the IEO, so exchanges have a way to make their token more valuable.

[desticy]

The main thing, and the only doubtful aspect for me is the fact that exchange coins are absolutely centralized and depend on the reputation of the exchange. In case of any problems with the exchange, the price of a coin will instantly collapse.

[ajdar.muxin.79]

I think IEOs are great only on exchanges that can guarantee a great price increase. Because I have hard doubts on fact that every token sale on an exchange is going to have success. Only Binance can give such opportunities, but no other exchange.

[rjp55]

Compraed to ico's, ieo's have zero disadvantages.

There is only advantages which are, guaranteed listing, secure middleman for kyc and transperancy about raised amount.

[shakesbear]

Let's see what happens next, while many exchanges are trying to grab a piece of the pie and exchange tokens looks like another bubble, be careful.

[coinplus]

1. Trust
We cannot trust exchanges all the times. Only due to the reason of changing platform, we cannot assume crowdfunding will be a highly trusted one for better ROI. I mean people will pay extra for IEO to make their fake project success through crowdfunding. In this case ICO and IEO will not have big differences.

2. Security
KYC is a headache only for airdrop and bounty rewarding and definitely not for ICO contribution. I am not sure what category it will fall like I am not seeing it as neither advantage nor disadvantage.

Over all, IEO will not change things for a common contributors. We still need to be more careful for choosing and spending money for better ROI and to avoid scams.

[Osarman]

There is nothing in this world that has an advantage that don't have a disadvantage, though the advantage of IEO is more than that of ICO because it is regulated by exchanges, as you have mentioned, trust will be one of the major advantage of IEO since this token sales are carried out on exchanges that have already made name for themselves and also gotten trust from investors. The disadvantage is that not all company will have funds to least their token for sale via IEO.

[mrdeposit]

The main thing, and the only doubtful aspect for me is the fact that exchange coins are absolutely centralized and depend on the reputation of the exchange. In case of any problems with the exchange, the price of a coin will instantly collapse.

Certainly, we have already witnessed this in the last sale of Binance.  On the 17-minute sale, all of my applications were sent back and still nobody knows what that is.

[Stargazer]

Now, we should be really careful about IEO! Because after successful Binance IEOs, most of the exchanges are coming with an IEO. So, people understood the business! Many ICO projects are turning into IEO to make money or maybe to scam again! I have known most of the exchange according to the Coinmarketcap listed, but at this moment, Many exchanges I never have seen them, and they are coming with IEO with some catchy words! So, except big exchanges like Binance, Bittrex, Houbi, everyone again need to be aware of all of those IEO!

[CoinChili]

I have read so many feedbacks with IEO. But the thing is even in IEO, there are still scammers that are using it to fraud people. Just as you have mentioned, crowdfunding will be an alibi to scam others. If one of the advantage of it is the security, i think many investors will turn their back with ICO and go with the IEO.

[LbtalkL]

1. Trust
We cannot trust exchanges all the times. Only due to the reason of changing platform, we cannot assume crowdfunding will be a highly trusted one for better ROI. I mean people will pay extra for IEO to make their fake project success through crowdfunding. In this case ICO and IEO will not have big differences.

2. Security
KYC is a headache only for airdrop and bounty rewarding and definitely not for ICO contribution. I am not sure what category it will fall like I am not seeing it as neither advantage nor disadvantage.

Over all, IEO will not change things for a common contributors. We still need to be more careful for choosing and spending money for better ROI and to avoid scams.

Yeah, the trust and security really matter and the exchange reputation, I think the current hype started by binance will only happen on binance because in the past years they have proven themselves some IEO the effects is not the same with binance which is sold out in seconds or minutes. Also binance verification and researchers are good they are not listing any projects that want to partner with them they go thru a long process.

[Perie200]

Of course it is very good that IEO excludes scammers and lists tokens after the sale. that's all. I don't see any more pluses at this subject. ICO is more useful for scripts in General.

[cahbagus555]

Sorry, I don't think it is like disadvantages. Everyone should research before the investment, I don't know any other investment source where people can guarantee the profit! Except for the binance launchpad, everyone needs to research a lot before buying coins from the IEO, every exchange are not trustable!

I am agree, not every IEO profitable and only from trusted exchanger can deliver it. Binance having a good strategy on their IEO and its already proven profitable for investor. Many big exchanger will follow binance step and its good for new investor in cryptocurrency

[futile-resistance]

Of course it is very good that IEO excludes scammers and lists tokens after the sale. that's all. I don't see any more pluses at this subject. ICO is more useful for scripts in General.

There is no IOTA of doubt about that, ICO is far more useful and more beneficiary to the society than IEO but the main factor that might make ICO very irrelevant is the issue of scam that you mentioned.

This scam issue has really put a lot of stress on the current market by not encouraging investors to participate that much in ICO and skeptical in investing on the existing ones too but as IEO has been able to build their confidence back, that is all that matter and reasons why IEO will gain more popularity, the only thing that is still keeping ICO in the system is because of the regulation and cost of IEO.

[ralph_0608]

The advantage I see in IEO is that it has a guarantee that it would be listed in an exchange, investor may feel secure not to be scam since crypto exchanged are the one who filter and scrutinize coins if it has a capacity to operate or might be a scam coin only.

[Thomas-s]

It seems to me that these IEOs are created only to make a pump of the internal currency of the exchange. Of the recent projects, almost no one can buy coins. This is a new way of manipulation by the exchanges.

[royalfestus]

I approached an ICO team to conduct IEO to make the crowdsale faster but their response was that they wont participate in any pump and dump process. Though  the process looks like, thats due to the profit made for investors in the shortest of time but I cant say anything on the control of dump because the development i still young.

[louisBSAS]

In the IEO, the main plus is that he was able to revive people's interest in investing in new projects.
The downside is that many exchanges conduct an IEO unfairly, they do not allow a large number of people to invest and artificially create a stir. Thereby undermining the credibility of IEO among ordinary people.

[trashman43]

In my view, I think the advantages and disadvantages of IEOs are very similar to that of ICOs. The only differences i have seen so far are the fact that people can actually seen the amount of tokens sold in IEOs.