The Impacts of IEOs on the crypto-ecosystem

[kidbounty]

as far as I can see the most felt impact is the increasing crypto marketcap. and will increase for price. for investors, I don't think there is anything new. all the same as last year nothing has changed.

The IEO gives new hope for the community, I'm sure for the long term there will be many impacts that can be felt

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[sana54210]

There have been many kinds of evolution. From the first ICOs with reputable escrows (do you remember that?) to IEOs, it is an ever changing world.

I wonder why the ICO escrow system is really not solving the challenge of ICO scams but looking at escrow, it can only protect the user against not receiving coin but has no effect on whether the coin becomes useless to its holdlers or not, and this IEO project might end up same way too.

Because, I think the only solution IEO has brought is still to protect investors against ICO scammers but I don’t see much it can do in the areas of shitcoins, a lot of projects being raised by IEO will still end up becoming useless in the long run if the project teams and advisors are not up to task, they need to be very hardworking to keep their project active, So the success of the project still lies with the owners.

[florac9]

The impact of IEO in crypto world is very highly positive, it has return the once lost trust back to cryptocurrency investors and om positive the trust will stay longer than ICO did

[Fred3030]

Of a truth the IEO mechanism  might have it's nefarious effects on the blockchain community but  it has really rekindled the interest of investors. Many may like to speak negatively but provided the mechanism continue to provide a means for more investors to enter the blockchain space with more certainty and assurance of getting to invest in reliable projects,The IEO mechanism remains ideal for the time being.

[Danslip]

The impact of cryptocurrencies grows every day so making false assumptions against its development will not stop this process. Constantly changing circumstances can leave so many sings on token sales and that's why we see IEOs on the crypto sphere.

[hrunya102]

In the last days there was a view that some exchanges thyself can buy tokens during the IEO, for hype surrounding their exchange.

[fasdorcas]

Last one week almost five IEO was success with sold out just few time, we don't know how many IEO will be success at the future and will be bring big effect for ICO become lower interested and scam later.

There is no point you can reject the potential IEO has inducted in to the crypto space. I think that the major part of the risk in case of ICO has been eliminated upon the arrival of IEO and it will keep on thriving the system.

Moreover, only one IEO was cancelled by an exchange because of the termination of a deal between the startup company and agreement was a vital aspect of that project which was no more there so the exchange cancelled it which means that an investor is not going to spend his money in a white paper.

[novy]

I see some good impact to project from IEO, but it is momentum impact. IEO will not live for a long time, I think this kind of offer will kill the projects.

[GregH37]

In the last days there was a view that some exchanges thyself can buy tokens during the IEO, for hype surrounding their exchange.

Well, people running exchanges are human too, and they have the right to also invest in any coin that they feel will benefit their company, it’s a good thing too that they believe in other people’s project because if they didn’t, they would not have been a part of people HOLDING it, although I heard lots of rumors that these exchanges do these to create FOMO that will quickly make the token get sold out and dump the remaining one they have bought on the market, thereby still crashing the price of the coin a bit, but even with these, most investors are praising IEO for what it has done for them.

[James678]

Thanks to IEO we have growing interest to crypto currency in general and I think it will be the same as ICO sucess.
A new fresh blood is going to invest in crypto currency and as a result we will gain out of it

[axel2078]

Thanks for this post, you really analysed it well. IEOs are meant to help the crypto space grow but if care is not take it might lead to terrible loss to most investors. So it will be wise if the main motive about IEOs are maintained and improved.

[TimeTeller]

Thanks for this post, you really analysed it well. IEOs are meant to help the crypto space grow but if care is not take it might lead to terrible loss to most investors. So it will be wise if the main motive about IEOs are maintained and improved.

With how things are progressing with IEOs, I don't personally believe that the original motive will be maintained and improved.
Many new exchanges are following the trend and are building their own launchpads, which will turn into chaos later on.
This will be a new playing ground for scammers, cheaters and the likes. They will find a way to lure the exchange with their plans.
Small and big time investors should be intelligent enough to identify potential crap from the real ones.

[Mommynigabby]

This will be the death of ICO. I know some who's had ICO, then switched to IEO later on. I'm not expert so I don't really know the big implication of of doing the token sale over an exchange platform. But I see a lot of centralized exchanges incorporating launchpad on their platforms.

[Mrsparks]

This will be the death of ICO. I know some who's had ICO, then switched to IEO later on. I'm not expert so I don't really know the big implication of of doing the token sale over an exchange platform. But I see a lot of centralized exchanges incorporating launchpad on their platforms.

My problem is that some of this exchanges are putting up rules and practices that are unhealthy for the crypto space.. The threat of centralization is growing and carelessness in terms of product development will grow.. Since project now fill listing on an exchange instantly after the fund raiser is an award on pass mark .

[Petchant]

All the points raised here are genuine. Though IEO raise up the dying spirit of investors to try cryptocurrency investments again especially when there's an opportunity of direct liquidity for their investments. But if we look at it deeply, it might not be that good for the long-term image of the industry especially when some of them later turn to scams which will surely happen because I don't think the vetting procedure of most of the exchanges is elaborate

[cchub]

IEO which in full means initial exchange offering is not a new topic in the crypto eco-system. Long before Binance Launchpad, several projects have taken that path to raise funds for there project by offering the native currency of their platform to traders on exchange. I remember observing a few on mercatox some years back. It was definitely no big deal as at that. Today IEO has become a menacing rave in the crypto-space owing to the fact that majority of the ICO in time past have failed to list on reputable exchange for investors. regardless of the hype and uniqueness of a project,  securing reputable exchange with good trade volume is key to the liquidity of digital assets and sad to say it today's crypto investors don't want to wait for products. They rather sell the hype than wait for the long term yield that will accompany this project gaining real-life application.
The impact of this IEO model proposes three debilitating factors on the blockchain community.

1. Lack of widespread distribution of nodes and monopolization of the. Today's IEO model literally plays into the hands of whales. With the likes of bittrex favoring high purchase by a single user. It's not hard to see whales controlling the valuation of these upcoming projects cryptocurrency on exchange. Asides from prices, centralization of nodes can be dangerous as it can lead to treats on the network with respect to mining. A Single-user acquiring a subset of the network can be catastrophic.

2. The IEO mechanism does not truly favor long term growth of this project. Now it's important to note that the majority of these coins sold on exchange are bought not by investors but by traders who actively trade on exchange. Majority of this traders do not no a thing about this project and will dump at the slightest profit or in the face of the slightest loss. Some might say it's part of the market cycle. Weak hands selling to stronger traders but it's key to note that community is very important in crypto compared to other market and it's almost impossible to build suck around traders who do not care or look towards the success of this project.

3. This exchange is also doing too little to protect the interest of participants who take part in these IEOs. In my opinion, it shouldn't just be about raising funds and meeting Hardcaps. These exchange should take up more roles. Some examples I picked up from the Pledgecamp project concept includes. Strategic disbursements of funds raised during these IEO events based on achievements of milestones, certification and other pre-agreed terms all design to ensure this project doesn't just bail off with people's money or fail to develop products that can attract value to the native currency.

In conclusion, a lot more tinkering needs to be done in order for IEOs to continue to flourish and promote the growth of the blockchain community. If steps aren't taken to prevent these impacts, we might see the IEO trend failing just like the majority of ICOs have failed.

I understand your point of view but I believe exchanges are just playing a small role in this ecosystem. ICOs or IEOs are basically the same thing, but exchanges are also in between in IEOs. That's the only difference.

[Melo20]

IEOs are an exciting new fundraising mechanism and have attracted lots of attention, but will probably remain focused on niche projects for now. Additionally, the main point of the IEO model is not the underlying merits of any individual project, but the financial engineering they enable with exchange tokens. By wrapping these functions together, IEOs can increase demand and utility for the exchange token, which could affect price in a drastic manner. The crypto space has no shortage of financial engineering, and IEOs are a perfect case study.

[Bonwin]

Almost everything that comes with a booming effect in the crypto space tend to gradually fade off if care is not taken.

F most investors start noticing the lapses in IEO or is the disadvantages outweigh the advantages, they might start opting out and begin to consider another model of investment or retreat back to ICO.

[raven7886]

Almost everything that comes with a booming effect in the crypto space tend to gradually fade off if care is not taken.

F most investors start noticing the lapses in IEO or is the disadvantages outweigh the advantages, they might start opting out and begin to consider another model of investment or retreat back to ICO.

To be fair to IEO and its managers, The invention of IEO Launchpad  has really done a great job in winning back the trust of investors on crowd funding, which ICO scammers almost destroyed, and I think most people are so wise now and not like Dogs that goes back to its vomit.

Until ICO projects are being regulated, I don’t think much investor will look at it again, the next direction that they might be looking at is that of STO if IEO fails, but I think the exchanges are strong enough to keep IEO active for a very long time, especially the ones being handled by reputable exchanges. If we still then fall victim of scammers by not following the rules, then we should be held accountable and not IEO.