Some IEOs could also turn out to be scam

[melomanskiy]

I didn’t even have thought to trust exchanges without a reputation or new exchanges. I agree with the author that they spend ieo only for their own benefit and they don’t care if this is a fraudulent project or not. Therefore, if we consider investing in the ieo, then only from the top 5 exchanges.

[Tylev]

IEO so far only helps campaigns to quickly raise funds and gives certain confidence to investors that new tokens will soon be traded on a certain stock exchange. Also, given that the exchanges are checking projects, the likelihood of fraud falls, but does not disappear altogether. Fraud in IEO projects is still possible. Scammers will lose a lot here. I heard that the opportunity to bring the IEO campaign pay exchanges up to 20 Bitcoins. This is a very large amount that must be paid in advance and not all scammers have such a sum.

[ub27]

Yes, some IEOs on exchanges without good reputation and trust rating are obviously scam. But most IEO on reputable exchanges are legit. You think BINANCE or KUCOIN or OKEX for instance will take their name to the mud because of some IEO? They do proper findings before accepting to list any IEO on their launchpad or spotlight.

[kingzpro]

I have seen people taking loans from banks and then start a new business that fails which results in failure to pay back to the bank resulting in closing of business and filing of the bankruptcy by the business owner similarly all these tokensales and crowdfunding projects can fail resulting in loss of money and time that is why it is important to identify and invest only in high quality projects where chances of failures are less.

[aderidwan98]

For now the IEO is indeed a favorite choice for crypto investors, because so far the IEO carried out by several exchangers has made a profit for them

[pixie85]

IEOs are only safer than ICOs. They are by no means the safest or impossible to go bankrupt. Investing in IEOs is more like investing in traditional stocks. A traditional stock company can also be a scam and cost you money. If you don't believe me google theranos.

Every investment carries a degree of risk and you have to take it into account.

[Chomsy]

Only the IEO has a good project and is done on a good exchange, which is also able to make investments in the IEO to benefit. So don't ever expect that all IEOs will make you profit. It must be remembered that not all IEOs can make you profit.

Most people attach great importance in IEOs now but truly it shouldn't be so. Unless for the IEOs conducted by top exchange, most of them are prone to scam. An exchange hosting doesn't mean the project is 100% legit, investors should have that in mind.

[Dellosoft]

You have a point, some IEOs will turn out scam but will be difficult for those on the big exchanges like Binance, Okex, kucoin, Bittrex etc.  We all know the team will be thoroughly verified before any IEO. But for fake exchanges, just pay them and they do your IEO even if it's scam. Let's be guided please.

[diazepam666]

Well understood about the IEO. I am appreciating your time to give explanation as an investor of IEO/ICO.

Now many exchanges started launching tokens by getting the money from the ICO team. Those kind of the exchanges needs to shortlist and boycott from using it.
I never participated IEO expect BTT on binance. Now they also changed the rule to lottery format to increase the hodling on BNB. This is good for their own platform, no other ideas as I know.

[Golstrim]

Most of IEOs are turning to be a scam, people don't even read about founders and product like it used to be in case of ICO.
So I think that things should be changed , crypto should get rid of scams

[daporivera]

Well, irrespective of the fact the IEO seem secure than ICO, it is essential you do research on the project before you invest in it as some IEO projects might also be scam

[robelneo]

As an investor, i cannot participate in IEO conducted by small and new exchanges. The main reason why IEOs are preferred to ICOs is because they are more prone to scam than ICOs, and this is because the exchange validates its legality with their reputation. Imagine Binance or any top exchange conducting a scam project, it will jeopardize their integrity, and these exchanges do not want their integrity in question, so they only offer legit and promising projects IEO. New exchanges do not have the reputation to validate a project, they are just after the profit, SO they might promote a scam project either intentionally or unintentionally.

I agree people should only go for IEO that held their crowdfunding on a big exchange like what you posted Binance and other exchange as equal as Binance, scammers will shift their target to IEO because they cannot squeeze more funds in ICO anymore.

[Reid]

As I said from before here, there will be holes also with this kind of offering.

I am just really worried with a lot of newbies that may become a victim of this kind of projects.
I mean, why not just stay with the legitimate ones and wait for them to increase in value.
Why do we have to be so much greedy supporting a project that have way too much risk.

Why not just stay bitcoin and be patient.
Yes we all have a choice but a better one is being offered already.

[triangles]

Indeed, for small exchanges, it is very vulnerable to scams project, especially I think the small exchanges don't have due diligence, even though their status are still a small market, they also have to pay attention to the project they are holding, not just chasing money in my opinion and for now it is better to follow the ieo held by large exchanges only unless there is indeed a good ieo held on small exchanges.

[shinratensei_]

It's highly unlikely foe an IEO to turn out as a scam because the exchange won't risk their reputation to hold a scam IEO. I'm not saying it isn't possible but it's highly unlikely.

really? have you seen the reputation of some of the exchanges that are out there? They are scammy themselves! Take yobit for example, any IEO that they conduct is surely going to be a shit one. Even if it has immediate buyers.

Yobit is very well known as the shittiest exchange site in the history because there were hundreds of scam coins launched on its exchange site. But another possibility like latoken because most of IOEs that listed on latoken were garbage projects. I knew some small exchange sites which were having the same potential to listed scan ICO too.
That guy is was definitely never try to do research.

[hatshepsut93]

As an investor, i cannot participate in IEO conducted by small and new exchanges. The main reason why IEOs are preferred to ICOs is because they are more prone to scam than ICOs, and this is because the exchange validates its legality with their reputation. Imagine Binance or any top exchange conducting a scam project, it will jeopardize their integrity, and these exchanges do not want their integrity in question, so they only offer legit and promising projects IEO. New exchanges do not have the reputation to validate a project, they are just after the profit, SO they might promote a scam project either intentionally or unintentionally.

Scams can easily sneak into even the most trusted exchanges like Binance, because in crypto scams come in different forms. Simply taking money and disappearing is the most obvious, but scammers can also just fake activity for years, while getting more and more profit by dumping their stash and manipulating the market, and in the end they'll just say "sorry, our project failed" and close their project - and they'll face no repercussions for that, and people wouldn't even know that they were scammed.

[jazmuzika217]

Yes it will surely come true because no one will guaranty this IEO a 100% legit project this is only a hype since the popularity of IEO are being spread in crypto world because its sound new like what happen when ICO first introduce in the market and look what happen so many project turn to scam.

[huhhuh18]

Actually, there are huge skepticism about small exchanges running IEOs because the hype hasn't come yet. Should there be the hype again, they're all gonna run very successful projects but you're right tho, proper research should be done before joining IEOs.

[bittick]

Actually, there are huge skepticism about small exchanges running IEOs because the hype hasn't come yet. Should there be the hype again, they're all gonna run very successful projects but you're right tho, proper research should be done before joining IEOs.

It's not because Hype, the skepticism about small exchanges running IEO is that the exchanges hasn't yet become reliable and proven to be trusted, the devs that want their project listed on small exchanges' IEO could bribe them anyway.
That's why there's no guarantee that an IEO will not turn scam if the hoster is small exchanges that is not popular even worse the exchanges is created only for IEO and just recently.

[Saisher]

Small exchanges can still do an IEO provided that there are no issues in the past about their exchange, this is a good way to prove that they can compete with big exchanges if they can handle IEO.