Is the IEO a bear market opportunity or a fraud risk?

The article said: IEO still exposes investors to fraud risks
Like the ICO boom, the latest financing mechanism, IEO, still exposes investors to fraud risks. But it is still unclear whether it is more focused on IEO than ICO regulators. Securities attorney Zach Fallon said that IEO completely replicated the ICO model and made the situation worse. Fallon said that forcing investors to use platform coins makes regulators more skeptical about IEO. Since IEO tokens are immediately placed on the exchange and sold in the secondary market, the SEC is more likely to treat it as a security. The relevant exchanges also seem to play the role of broker-dealer. At the same time, Bittrex CEO Bill Shihara said: "IEO is likely to exceed ICO in 2017." Arca Funds partner Jeff Dorman said that because investors have high hopes for IEO, platform coins such as BNB have performed well recently, with an average increase of 200. %. Dorman said: "The irony is that this is contradictory to the decentralized spirit of encryption, but as long as the IEO model works, this is easily overlooked... everyone involved has a strong motivation not to go Killing IEO, the 'Golden Goose'." And Bitcamp CEO Nejc Kofric said: "Before we enter this market, the industry needs to be better regulated. Of course there are still some exchanges entering this field, I Think this is short-sighted."

1. One view is that IEO is an upgraded version of ICO, and the essence is still financing, and the investment risk remains. After the Spring Festival, the cryptocurrency market Xiaoyangchun was mainly driven by the rise of platform currency, while the rise of platform currency was driven by the launch of IEO from the currency security. The essence of IEO is still a financing model. Its biggest feature is the rapid speed of fundraising. It saves a lot of time for project crowdfunding, and the exchange can also gather the project side and its community resources. However, the risk of this IEO is still very large, for two reasons: First, unsupervised exchanges are still holding the scythe; second, there are still few good blockchain projects. Moreover, IEO is suitable for holding user resources, project resources, and investors' big exchanges. The value of the platform currency of small and medium-sized exchanges is not large, and good projects are in short supply, and there is no small exchange.

1. One view is that the IEO market will become very large and will far exceed the scale of the venture capital industry in the future. Financing is the killer application of the blockchain. ICO is flawed, but blockchain financing has more advantages than traditional venture capital financing, it will not disappear, and the IEO market will become very large, and the future is many times larger than the venture capital industry. Because IEO provides investors with more advantages, they can raise funds at a lower cost and faster rate, use the endorsements and users of the head exchanges, reduce the token unit price (estimate), and create a traffic heat in a disguised form. The exchange gets customers and allows the project token to be distributed to generate liquidity. Although it does not mean that every project will achieve great success, but the IEO market will become bigger and bigger.

1. The real dispute behind IEO is the contradiction between the market's financing needs and who is in charge of supervision. Behind the regulatory power is the right to distribute benefits. Although the blockchain market is hot, it is difficult for a clever woman to have no rice. Too many project financing needs are imminent, and IEO can be fire, very simple, both sides can make money! Now the head exchanges have launched IEOs, because there are huge benefits behind them, and they certainly don't like them from the perspective of traditional government agencies, because the exchanges make money without bringing dividends to the country. Now cryptocurrency exchanges become the entire asset issuance, trading and billing nodes, which is equivalent to the integration of quantitative transactions, brokerages, exchanges, banks and other services. The monopoly of the industry is the monopoly of interests, which is the reason behind the real self-sense! If there are interests, there will be rivers and lakes, and how far IEO can go, we will wait and see.