The Impacts of IEOs on the crypto-ecosystem

[GospelCrypto2]

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.

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[tk808]

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.

Excellent analysis, i share many of the same opinions and sentiments about IEO as you've vividly expressed.

[Dayan1]

The best effect of having this IEO offering is pushing our investors back to try again to play buy and sell. Since the market turns in red everything get collapsing. Investors decrease day by day and the good things made by IEO was showing that world of investment is still alive.

[Mrsparks]

The best effect of having this IEO offering is pushing our investors back to try again to play buy and sell. Since the market turns in red everything get collapsing. Investors decrease day by day and the good things made by IEO was showing that world of investment is still alive.

I think I support this point of view, IEO has brought some form of thrill to the market but just like this post pointed out I think it could be catastrophic In the long run if not properly regulated.

[tsaroz]

Its an important issue you've raised. Crypto is a new economic frontier and there had been new experiments every time.
But with IEO, failure of them would also affect the exchanges, their credibility and trust. Though exchanges do make sure to state they are not involved and risk remains about investment, people would not view it as so.

[coin-investor]

Yobit is one of the exchanges that do an IEO in the past, and they are still doing it now, but Yobit has a bad reputation and so are those projects that they do an IEO, this is thr latest craze in crowdfunding, until now I haven't saw a failed IEO, they are performing well in the market.

[GospelCrypto2]

Its an important issue you've raised. Crypto is a new economic frontier and there had been new experiments every time.
But with IEO, failure of them would also affect the exchanges, their credibility and trust. Though exchanges do make sure to state they are not involved and risk remains about investment, people would not view it as so.

Exactly..From last year till this year exchanges looked like the only thing that was working In crypto..With some becoming highly reputable and attracting interest from all over the world. I just hope this trend won't end badly with scammers infiltrating the IEO system as a result of these exchange not doing enough to safeguard the interest of IEO participants both during and after the sales event..

[smyslov]

Its an important issue you've raised. Crypto is a new economic frontier and there had been new experiments every time.
But with IEO, failure of them would also affect the exchanges, their credibility and trust. Though exchanges do make sure to state they are not involved and risk remains about investment, people would not view it as so.

Exactly..From last year till this year exchanges looked like the only thing that was working In crypto..With some becoming highly reputable and attracting interest from all over the world. I just hope this trend won't end badly with scammers infiltrating the IEO system as a result of these exchange not doing enough to safeguard the interest of IEO participants both during and after the sales event..

They should it's still in its infancy, what happened to ICO is like a domino effect, once scammers go to the picture, everything follows, they should ensure that only the best project can get in, it's a win-win situation for the exchange, the project and the whole community.

[antsam]

I am not worried about this, because investors will definitely buy and hold their investments until they are successful and of high value, traders will accompany them by buying and selling to get a return for them.
Crypto will evolve to look for the best for it, ICO, ITO, STO and now the IEO, let the market look for the best system for crypto trading

[Perie200]

I also believe that this initial sale of coins on the top exchanges will not bring new projects popularity. I will say more, this new trend in the market of primary supply of coins makes bad projects. People buy their coins not because the project is good, but because they know that it is possible to make money instantly, it is not correct and this approach will kill new projects.

[akungagal]

it looks like you are very serious about analyzing IEO weaknesses and what you say is indeed very important to prevent the same failure as ICO.

indeed the IEO is currently quite famous, many investors are interested in joining. but there is still a lot of homework to improve the IEO to be better than ICO.

[79b79aa8d5047da6d3XX]

Many people have been unhappy with the way this exchange conduct IEO . They do not put the customwr at hearr. Most atimes the customers end up not buying a single token due to the facr that must of this IEO are being sold out to whales before the IEO day. Its important that this Exchange put customer at heart and treat all customers fairly

[GospelCrypto2]

Many people have been unhappy with the way this exchange conduct IEO . They do not put the customwr at hearr. Most atimes the customers end up not buying a single token due to the facr that must of this IEO are being sold out to whales before the IEO day. Its important that this Exchange put customer at heart and treat all customers fairly

Very true,  the risk of whales manipulating the prices of this IEOs, is too great and the fact that the rules put in place excludes the engagement of small scale investors doesn't speak well

[Nwankwobtt]

It is evident that IEOs may get basterdized soon as many people have suggested because it has now become a manipulative tool for exchanges to pump and dump their native coins on people. With time, as the negativity spreads and get more members of crypto populace unhappy, IEO will be dead

[herurist]

The best effect of having this IEO offering is pushing our investors back to try again to play buy and sell. Since the market turns in red everything get collapsing. Investors decrease day by day and the good things made by IEO was showing that world of investment is still alive.

Yes, right, with the market IEO recovering and investors returning to trust it with investment, I am also very happy with the current IEO trends, showing new changes.

[jessyj48]

Since IEO has been introduced this year I haven't seen any failed IEO that refused to meet there hardcap ,im so thrilled about IEO and I'm sure that this is just the beginning ,I'm only worried about bounty hunters because popular IEO projects has no bounties so far ,only the mediocre ones launched bounty

[qazgroup]

For me the impact is positive and it will remain positive untill exchanges and platforms only list quality projects, i will not like if they start listing bad quality projects as well just for the sake of raising funds i think if that happens that will be very negative for the crypto ecosystem.

[TooDumbForBitcoin]

Yep. The impact is completely negative for the ecosystem. Today nobody watch a project, only exchange and sale details.

[Kingairdrop]

I want to believe that all projects listed for IEO are completely vetted by the exchanges before approval is granted and even though these exchanges have a clause saying that "they are not part of the development of these projects" but its important to note that, they have in a way linked themselves to these project by accepting to partner with them in terms of the IEO.

[BossJames042]

I share some of the views raised by the writer, between the IEO's and ICO's the big trade-off is that the IEO's are offering native tokens of reputable exchanges but the big challenge is the fact that they all are adopting a particular system that seems to favour only whales who in their view they see as strong hands, forgetting that most of these whales are in it for the money and care little or less about the projects visions or targets but rather are in for instantaneous gains. Now to compensate for that I believe like you rightly pointed out that these exchanges should structure these IEO's to accommodate as many investors as possible by factoring in big, medium and small investors that way the future of these tokens are more in the hands of a greater majority of community members as such monopoly of the project by few whales is reduced. I also believe centralization is another challenge they should work against as we have so many times talked about in our crypto space.