IEO can be a safer investment option than ICO

[TalkStar]

Hello Everyone,

There's so many users on this forum who take ICO investment as a earning source and honestly its never been so easy to make handsome profits from every ICO projects. As we all know that recently ICO scam has been a common issue where in every week scam accusation section getting crowded with these ICO scam related thread.   

Investment safety is the most important thing for a investor. Everyone will be glad to know worldwide crypto exchanges have started IEO system for upcoming crypto projects where I think its a safer investment way for a crypto investor. Recently some famous exchanges are running this Initial Exchange Offering and they are;

1. Binance 
2. Bittrex 
3. kucoin 

As a crypto investor I personally believe that this system is pretty much safer than ICO. Basically investors had to think about a lot of things before putting their fund on a ICO project such as research whitepaper, project Accuracy, team members and many more. In case if a project can't be able to be listed on exchanges then its another big problem for the investor. But this new IEO system has made this easier for investors IMO. Where recent Binance launchpad Projects gain 10x price from the starting price.


I am not encouraging you guys to make IEO investment but just trying to show a safer way where there is lower chance to be scammed.

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[tbct_mt2]

In general, IEOs might be a little bit safer than ICOs.
Especially IEOs come from well-known, reliable exchanges, like those one you listed in the OP.
In contrast, for IEOs come from un-known, young, new-born, small volume exchanges, they are more risky and it is difficult to judge that invest into such IEOs is safer than invest into ICOs.
Exchanges can make scam exits, can get hacked and go into dead/ bankcrupted, so it is obviously risky too.

Additionally, it is hard to say IEO invesment is safer, because even exchanges don't got hack, or scam exit, investors can get losses too.
Buying at highs, selling at lows, and eventually get losses as ICO's invesments.

[Crypto Girl]

Additionally, it is hard to say IEO invesment is safer, because even exchanges don't got hack, or scam exit, investors can get losses too.
Buying at highs, selling at lows, and eventually get losses as ICO's invesments.

On a contrary, those exchange sites are reputable so they somehow filter what projects they'll launch though we can assume that this project can offer more pay just to be launch on those sites. We can in fact use these sites as a guide but don't depend your decision on it either be in hype. We're on the space of uncertainty so choose and think logically.

[CryptopreneurBrainboss]

Just another hype that will soon turn to a scamming mechanism used to defraud investors. For starters, IEO isn't that new. if you have been in the crypto-ecosystem for quite some time you'll notice some exchange carrying out ICOs on their platform especially mercatox exchange. It's just getting hype right now because binance bought into the idea. If IEO achieve half of the success ICO did achieve exchanges will just go in for the money and list shitcoins without concerning the safety of their investor. It happened to ico rating site, cryptocurrency influencer etc so I'm sure IEO won't be any different. It's safer now but will it be tommorow?

[manishanand]

Actually, i wouldn't prefer IEO as there are already many exchanges floating around here and are in a very worst condition you cannot expect that they will be easily successful.

[pinoycash]

Joining IEO remove's the risk of holding a bag of worthless tokens compare to traditional ICO.

With IEO all investors are secure that they can freely liquidate their bought coin after the IEO sale. While in traditional ICO it carries a heavy risk that the token/coin might not be listed on a exchange.

[tbct_mt2]

It is only right for those three exchanges' IEO, but might turn out to be wrong with IEOs from small, less well-known or unknown exchanges.

On a contrary, those exchange sites are reputable

As I raised my opinion above, it is only right for big exchanges.

Joining IEO remove's the risk of holding a bag of worthless tokens compare to traditional ICO.

With IEO all investors are secure that they can freely liquidate their bought coin after the IEO sale. While in traditional ICO it carries a heavy risk that the token/coin might not be listed on a exchange.

Investors will get nothing back if they invest into IEOs from small exchanges, that eventually make scam exits.

[Simple_Plan]

I totally agree with OP's idea that IEO is safer than ICO. To IEO investors, they are exonerated from the fear that their tokens will not be listed on any exchanges. To project development team, they have the money to continue the project. And to exchanges, they obviously get a part of fund raised from IEOs. This way, all parties are benefited from IEO.

[UserU]

Investors will get nothing back if they invest into IEOs from small exchanges, that eventually make scam exits.

True that, its still about due diligence in the end.

Those who get scammed at least once would be more or less aware of what's going on next time.

[TeQuiero]

Many people say that STO will be the trend of 2019 but I remembered saying somewhere that IEO (but STO) is 2019's real trend. But in comparison with ICO, IEO is much harder to buy due to imbalance between supply and demand. That's not to mention the shady interference from exchanges during and after the IEO (restrict the buyers or pump token's price to create hype).

However, for lucky people who can buy token during the IEO, they'll get a fortune. Consider the latest IEO - Top Network as an example. Its price at the time of writing is USD 0.0125, which is 7 times higher than IEO price of USD 0.00177. Clearly IEO is on the footsteps of ICO on its early days and deems safer than ICO at the moment.

Aside from exchanges mentioned in OP, I can name some other trustworthy exchanges also offer IEO platform:

• Houbi Global
• OKEx
• Idax

Website for upcoming IEO: https://coincodex.com/ieo-list/

P.S: IEO is just a way of investment and investment always goes along with risk.

[pooya87]

i disagree, in fact i say IEOs are even less safe than ICOs because exchanges are involved. they don't care about legitimacy of the projects they advertise, they may only do it at first but eventually they will end up promoting only those that pay them the most. and before you know it you will start seeing only big scams being promoted in these exchanges that can cause so much damage to the whole market.

[Bharathi13]

i disagree, in fact i say IEOs are even less safe than ICOs because exchanges are involved. they don't care about legitimacy of the projects they advertise, they may only do it at first but eventually they will end up promoting only those that pay them the most. and before you know it you will start seeing only big scams being promoted in these exchanges that can cause so much damage to the whole market.

I agree with OP IEO is safer as compared to ICOs, IEO is not the new concept this method has been used in the past successfully. The IEO fund raising model is again in the demand because of two recent succesful IEO BitTorrent & Fetch.AI launched by Binance & we are seeing competition among the exchanges like OKEX, Kucoin, Huobiprime, Binance, Bittrex.

To conduct an IEO, the project team must meet and comply with the exchange’s requirements in order to launch the token sale. Contributors are, therefore, protected by the exchange. Although some may argue that the exchange may go along with the project team to scam customers, this will put the exchange’s reputation at risk. Exchanges that look for a sustainable business model would not consider taking such an unethical move. Instead, the exchange is risking their credibility when doing IEOs, since it has no control over the IEO project team’s operation and product delivery as promised in the latter’s white paper. To maintain trust with its customers, the exchange must carry out a comprehensive assessment of the project before launching the IEO. This provides an extra layer of protection to contributors.

Compared to ICOs, the risk of IEOs is much lower for both the project team and contributors.

On the customer’s side, not only will the exchange help them review the projects and filter out scams, but it also provides better liquidity for trading afterward as a large user base is already guaranteed. The exchange will also offer a convenient platform for contributors to manage their funds as all assets can be stored in the exchange account instead of different wallet addresses.

For project teams, they are eased of operational hassles. For example, all the exchange users have been vetted by the exchange’s KYC/AML verification. The exchange will also provide liquidity with its user base, and also help on marketing promotions.

With all the scams and frauds out there, an IEO is no doubt a better model for the contributors/customers. Despite more processes required for both project teams and contributors for the token sale, the extra protection offered is worth the cost.

Reference :- https://dailyhodl.com/2019/03/13/initial-exchange-offering-ieo-vs-initial-coin-offering-ico-what-are-the-differences/

[pinoycash]

i disagree, in fact i say IEOs are even less safe than ICOs because exchanges are involved. they don't care about legitimacy of the projects they advertise, they may only do it at first but eventually they will end up promoting only those that pay them the most. and before you know it you will start seeing only big scams being promoted in these exchanges that can cause so much damage to the whole market.

Binance launchpad has a strict due diligence on the project they accept on their platform. it is 100% safer compare to random ICO that is born everyday.

But one thing is true, ICO will become a cartel and centralized to Binance launchpad.

[Erickan]

i disagree, in fact i say IEOs are even less safe than ICOs because exchanges are involved. they don't care about legitimacy of the projects they advertise, they may only do it at first but eventually they will end up promoting only those that pay them the most. and before you know it you will start seeing only big scams being promoted in these exchanges that can cause so much damage to the whole market.

Although I do not like IEO, I still have to recognize IEO as safer than ICO in terms of fraud and poor quality. Of course, here I only mention IEO of reputable large exchange platforms like Binance. But why do I think IEO will be difficult to maintain for a long time and it has disadvantages compared to ICO:

1. Lost the decentralized nature like ICO
ICO is created to allow everyone from small to large investors to participate, everyone can contribute, as long as you are valid with the rules set out. But the IEO is different, in order to be able to buy token from the IEO, you must follow a lot of principles from them and not everyone can buy it.

Example: According to the latest rules from Binance, to be able to join their IEO you must have BNB in the account, limit 20 days to the lottery draw date. The more BNB balances, the greater the opportunity to buy IEO tokens.
                                                                        

This suggests that everyone who wants to participate in Binance's IEO will be dependent on BNB. And the rule above, it seems that their IEO is only for big investors.

2. Inflation and dependence
What do you think when everyone wants to join Binance's IEO? They are forced to buy BNB and make its price inflated. Since then, the most benefited people from IEO are not investors but Binance, they have succeeded in pushing BNB prices. But IEO is like ICO, it does not guarantee 100% profit, it still causes losses like ICO, of course that Binance will not be responsible. From that point of view, the IEO is a game where the exchange platforms will be the most benefited people, investors will still suffer certain risks.

So I think the IEO will not be sustained for long or the IEO will have to improve more so as not to be too dependent on the exchange platform.

Learn more about Binace's IEO participation rules: https://www.binance.com/en/blog/316491046311071744/Update-to-the-Binance-Launchpad-Token-Sale-Format

[The Cryptovator]

I am not yet sure about Bittrex but I have experience on Binance they manipulate themselves. General member are unable to buy Launchpad. What I expect big whales or Binance themselves accumulate most of token. We can see within few days what is going on. Expect Bittrex will not cheat their users. However I am wondering to try on Bittrex if they distribute fairly. And obviously I am not going to invest any ICO anymore. If found legitimate IEO perhaps I would like to invest small amount just for experience.

[r1s2g3]

Let go to very beginning, shun ICO, STO and IEO. Just launch  your coin just like Bitcoin and focus on development. If something is of real value then it definitely get the monetary value. It also raise the confidence that developer is not there for just gathering the quick money.

[Tushar Ramani]

I am not yet sure about Bittrex but I have experience on Binance they manipulate themselves. General member are unable to buy Launchpad. What I expect big whales or Binance themselves accumulate most of token. We can see within few days what is going on. Expect Bittrex will not cheat their users. However I am wondering to try on Bittrex if they distribute fairly. And obviously I am not going to invest any ICO anymore. If found legitimate IEO perhaps I would like to invest small amount just for experience.

I agree with Binance accumulating most of the token itself. There a very few people who were successful buying CELER last time and we don't have info regarding all buyers. The another common thing was people going with full cap were only who got a place during last Binance's IEO. The model of IEO can't be compared to ICO as there is no decentralization at first. Second, 200-300 USD investment is no possible according IEOs held by Binance.

Safe? What if an investor with 500 USD was in queue for clearing his participation and after 20 minutes, he gets to know he failed? He will surely loose his total investment(BNB) gathered for IEO as there will be dump after conclusion of IEO which we've seen for CELER as well.

[kakonhat]

We know every day coming many new investor or users in the crypto world. And most of the users don't have a good knowledge of crypto. So there is a chance to be cheated by a scammer mostly in ICO investment.
I think IEO is a good decision for new investors even all investors. But we must remember that we need to trust those IEO which is arranged by the trusted and popular exchange.

[Little Mouse]

Like as you said, investors need to research the project in ICO but why not in IEO? An investors must have to read the whitepaper and understand the whole project. All of the Binance launchpad IEO gave good returns don't mean IEO will be a good investment option. It will also be hugely misused like as ICO was. Investors still require to study the project because you must not depend on Binance, who run after pure profit only.

[jademaxsuy]

wow, another info worth reading for. As a bounty hunter itself, I am not keen on every good projecta but knowing this forum with a lot users with input regarding on bounties and etc. Life in bounty hunting may become easy. At least we have them here and the best thing is to not just focus on one section. I have been posting for a while im different sections and definitely it is a help especially in learning new things. However, i am just not doing some.replies in some technical section thus giving me hard time to understand the postings and the terminologies.