The rise of the IEO on Binance

Most crypto traders use Binance, probably one of the biggest and most reputable exchanges globally, run by CZ with its headquarters in Hong Kong or Singapore, or maybe even Malta or some Caribbean island tax haven. It’ s hard to tell sometimes where these exchanges domicile, but any tax haven will do it seems.

Love them or hate them, and you have both camps nowadays, Binance are really leading the way when it comes to innovation and outright a profit-making annually. Binance exchange is making a fortune in profit so their business model must be successful. Part of it is based on the fees that they charge per trade that we do, whether buying or selling.

And another part of their amazing business model is the new concept of the Initial Exchange Offering (IEO) which took over from the Initial Coin Offering (ICO). In this latter concept, the exchange itself launches the new token onto the market for eager investors. If you want to invest at the start or launch of the coin, you need to be on the exchange at the launch time and you need to be lucky to get in. You need quick trigger fingers at sale time, like a Black Friday ninja. If you miss it in the first ten seconds, you could be out of the running.

But that style of launch was not so much appreciated, so Binance in their marketing wisdom decided upon a lottery for their latest launch. And you could only buy in if you had their BNB token, the in-house exchange token. This of course favored the exchange and pumped up the price of their token. BNB has sky-rocketed this year, thanks to the marketing genius of CZ the CEO. The only problem is that the system of getting in at IEO price hugely favors the whales. The more BNB token you own, the bigger your chances. This is also a bit flawed as a system but this is what we minnows and plankton have to deal with around the whales in the crypto market nowadays.

Take the recent launches on Binance, the new IEO tokens: you have BTT Bittorrent, which went to the moon since launching. You also have CELR, MATIC and FETCH, all pumping in synch lately, and dumping in synch too, for a while. They are all attracting FOMO investors, like there is no more bear market to be seen. Since then we have also had ATOM, PHB and now ONE or Harmony all entering the Binance exchange in recent days. Let’s not forget Theta and Theta Fuel, which launched this past week. All are traded for USDT and some for other stable coins too.

Theta has been around for a year already but just launched on Binance a week ago or so versus USDT, and it is double the price since initial launch, so there are ICOs and IEOs around to make investors some money today. It’s hard to ignore the new tokens when they pump in price and one can be forgiven for jumping in, out of FOMO, in the attempt to make some quick profits as a day trader.

However, the market is so volatile that it is hard to choose which coin on which day to focus on as the pump of the day. Some are in synch but not always. And they all have seemingly valid use cases, or solve valid problems in the tech industry. So FOMO is to be balanced with research and timing. Wait for the price to retrace back down to lower levels if you miss the initial pump and the price is already climbing. There is no use chasing a pump as you may end up buying the top.

Such is the constantly evolving nature of the crypto industry that there are new tokens and projects coming out every day of the year by the looks of it. One can’t be expected to keep up to date, unless you are a fanatic and avid crypto enthusiast who lives crypto. And some of us do. You just need to keep your finger on the pulse of the industry, keep informed of the fundamentals of each project and keep an eye on the timing of the launches of each new project.

If you are lucky you can buy in at the launch and make some healthy profits by trading the new IEOs on Binance and other exchanges. You can be a long term investor and buy based on the fundamentals of a project, or you can dismiss that and just be a day trader, buying based on technical analysis of the price charts on the day, regardless of the use of the token. As long as there is enough volume that is not fake, on an exchange with liquidity, then you can be sure of enough opportunity to sell when you desire, with your order being filled by buyers. Otherwise you will sit with an order hat doesn’t fill.

That’s where an exchange like Binance is helpful. It is open 24/7 and traded in all time zones, so you will have to set and forget your buy or sell order and let the market come to you, even while you sleep.
Your order will be filled, and if not then it will just make up the order book of buyers and sellers who create the future of the market, as we await price to return to our point in the chart. As Bitcoin returns nowadays to prices last seen a year ago in May 2018, for example, we find our old buy and sell orders from back then all coming into the line of trade now. They are being filled one year later, for profit.

And all those orders were there making up the ongoing trade action that makes up the blockchain, even though they seem virtual or almost illusory in their true value, until they are filled that is. They simply sit there awaiting buyers or sellers to meet it, so bide your time and eventually your order is filled and you walk away in profit, even if it’s a year later. Sometimes that’s just the way price moves against your attempts at predicting it.

It is a gripping illusion that we follow as traders, the whimsical and illusive price of our beloved crypto. Actually our real love is profit, as we are allured by the potential gains, regardless of token. Such an illusory life, chasing profit can cause us to forget the balance if we’re not careful, so remember to keep your feet on the ground s you reach for the moon.

Bitcoin price is crashing as I write this, down $1000 in the past six hours from $9000 to $8000. And it’s taking all the other token prices down with it. The alts are following Bitcoin as usual, so regardless of your preferred token, all are under the influence of Bitcoin, so you may as well invest in Bitcoin at this stage in the bull market.