A Lawyer's Perspective on IEO

[carter34]

Exchange would not allow IEO if they see big risk on it, as they will loss their business if they found violating a serious law.
Overall, this is a small move for the exchanges.

Yes I want to agree to this. The exchanges will do themselves more harm to accept an overtly bad project in the exchange because investors would run away from buying or trading with the exchange because of uncertainty.

Thus, IEO is a lesser devil. You can now see at least the listing of the coin and decide what you want to do later.

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[Lanatsa]

Exchange would not allow IEO if they see big risk on it, as they will loss their business if they found violating a serious law.
Overall, this is a small move for the exchanges.

Yes I want to agree to this. The exchanges will do themselves more harm to accept an overtly bad project in the exchange because investors would run away from buying or trading with the exchange because of uncertainty.

Thus, IEO is a lesser devil. You can now see at least the listing of the coin and decide what you want to do later.

This is a valid point but there are exchangers specially the small ones doesn't care much on what projects would be listed thru IEO.
When it comes or trying to compare up the risk we can say that IEO is much better option than ICO when it comes to exchange listing.
Business would be mainly affected if they do list out shitty projects but we cant really avoid the fact that even these projects aren't that
different on the ones being offered on ICO. Survival on this harsh crypto market is still questionable because it will always matter on its demand and usability.

[CryptoBry]

Exchange would not allow IEO if they see big risk on it, as they will loss their business if they found violating a serious law. Overall, this is a small move for the exchanges.

Yes I want to agree to this. The exchanges will do themselves more harm to accept an overtly bad project in the exchange because investors would run away from buying or trading with the exchange because of uncertainty. Thus, IEO is a lesser devil. You can now see at least the listing of the coin and decide what you want to do later.

This is a valid point but there are exchangers specially the small ones doesn't care much on what projects would be listed thru IEO. When it comes or trying to compare up the risk we can say that IEO is much better option than ICO when it comes to exchange listing. Business would be mainly affected if they do list out shitty projects but we can't really avoid the fact that even these projects aren't that different on the ones being offered on ICO. Survival on this harsh crypto market is still questionable because it will always matter on its demand and usability.

I know of this because last month I studied some IEO projects especially in exchanges which we can't consider to be at least belonging to the top 20 and many of the projects were questionable at least on my own simple standards. Well, this all boils down to business. Those exchanges, I am sure, are charging good amount of money so a project can have the IEO crowdfunding done in the platform.

This is the reason why we have to be careful if we are still a big fan of new projects either ICO, STO or IEO...many of them are just old dogs wearing new collars. The reputation of the exchange where IEO is done is very critical here...an exchange should have its own strict guidelines and qualifications before allowing a project to come on board.

Right now, in fairness though, I still have to hear a lot of scams and failed projects using the IEO route but let's see next year if this is going to be the same. Maybe a general study or survey of all the projects introduced via the IEO way should be done to see how things are compared to the dreaded ICOs in the past.

[marcbitcoins]

It was clearly the solution, IEO help the market to grow again, it's just beginning and most probably we will see more growth this year.
Exchange would not allow IEO if they see big risk on it, as they will loss their business if they found violating a serious law.
Overall, this is a small move for the exchanges.

I agree with you therefore if we will going to join a project investments that are using IEO platform then better if we will choose the known and best exchanges as their reputation is at stake if they will support a scam or a none feasible project. I strongly believe that IEO will lift up the reputation of Cryto currency but still we need to be vigilant as IEO platform is not safe from the thieves too.

[teosanru]

What i personally feel here is that law can be quite cumbersone so what I have found here is this as per your article:

Conducting an IEO in the United States, or selling to “U.S. Persons”[6] by way of an IEO, is almost certainly a violation of the Securities Act of 1933. Punishable by a host of draconian penalties

Now as you say placement of securities is violation of the laws created by SEC. However the thing is do SEC even recognize Bitcoin and other cryptocurrencies as Securities?? I don't know any excerpt from the rules which indicates how is bitcoin recognized. Maybe it is something which has a value and has a market where it can be sold and purchased. Is this enough for being a security? I hope the lawyer helps on this.

[imstillthebest]

Exchange would not allow IEO if they see big risk on it, as they will loss their business if they found violating a serious law.

I agree with you therefore if we will going to join a project investments that are using IEO platform then better if we will choose the known and best exchanges as their reputation is at stake if they will support a scam or a none feasible project.

but the exchange and the ieo are different  ( different owner , different projects ) they are not co related to each other which means the exchange will put an agreement or a statement that they will only accept the ieo because the ieo paid them to be listed under them but the exchange itself is not resposible for any loss or any problem that might occur in the future  . thats why the potential risk is still there and the exchange reputation wont be affected either

[Gozie51]

Exchange would not allow IEO if they see big risk on it, as they will loss their business if they found violating a serious law. Overall, this is a small move for the exchanges.

Yes I want to agree to this. The exchanges will do themselves more harm to accept an overtly bad project in the exchange because investors would run away from buying or trading with the exchange because of uncertainty. Thus, IEO is a lesser devil. You can now see at least the listing of the coin and decide what you want to do later.

This is a valid point but there are exchangers specially the small ones doesn't care much on what projects would be listed thru IEO. When it comes or trying to compare up the risk we can say that IEO is much better option than ICO when it comes to exchange listing. Business would be mainly affected if they do list out shitty projects but we can't really avoid the fact that even these projects aren't that different on the ones being offered on ICO. Survival on this harsh crypto market is still questionable because it will always matter on its demand and usability.

I know of this because last month I studied some IEO projects especially in exchanges which we can't consider to be at least belonging to the top 20 and many of the projects were questionable at least on my own simple standards. Well, this all boils down to business. Those exchanges, I am sure, are charging good amount of money so a project can have the IEO crowdfunding done in the platform.

This is the reason why we have to be careful if we are still a big fan of new projects either ICO, STO or IEO...many of them are just old dogs wearing new collars. The reputation of the exchange where IEO is done is very critical here...an exchange should have its own strict guidelines and qualifications before allowing a project to come on board.

Right now, in fairness though, I still have to hear a lot of scams and failed projects using the IEO route but let's see next year if this is going to be the same. Maybe a general study or survey of all the projects introduced via the IEO way should be done to see how things are compared to the dreaded ICOs in the past.

I think the bulk of your post is centering on failed projects, scam and promises that were never fulfilled. And going with the topic, this is suppose to be the focus of a lawyer to seek for remedy. Hence, the perspective of a lawyer would be to the benefit and remedy to an investor in case things go south with invested money. But I don't think the laws in cryptocurrency yet is giving any protection, if there is any.