[Initial Exchange Offering and Binance Launchpad ] - Crypto Academy / S5W6 - Homework post for @nane15
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Hello everyone, I welcome you all once again to another great week in the Crypto Academy.
Here we are once again in week 6 of the fifth season, it's been a lovely season thus far. on today's topic, I will be giving insight on one of the beginners' topics known as "Initial Exchange Offering(IEO)", the course was tutored by professor @nane15, you can as well join me and study from the Page.
Below is my submission to the assignment, Stay on, and wish u happy reading!!
IEO is another mode of cryptocurrency investment, it's an acronym for Initial exchange Offering, just as its name implies, it's a way of funding an ongoing cryptocurrency project.
Just as I said earlier that IEO represents Initial Exchange Offering, It is very like Initial Coin Offering (ICO), Both are mechanisms of raising assets for Blockchain-based activities.
The difference between IEO and ICO is that in an IEO, there is a foreigner, or let me say a crypto exchange like (Binance, KuCoin, and Latoken), that deals with every one of the processes.
In IEOs, the projects owners offer new crypto coins or new tokens to financial contributors. So that they raise assets for their project, and financial contributors can then profit from expanding the worth of the bought tokens assuming the project is effective.
Regarding IEOs, investors stake their digital assets in the interest of the project owners. Hence, they get a listing fee as a reward for participating in the offering or might as well get a level of the symbolic deal in the project. In this way, with IEO, token guarantors sell their cryptos or tokens on exchanges.
In any case, the only difference between ICO and IEO is that IEO isn't accessible for everyone to put resources into it. Just the ones who have a verified record on that exchange can add to the token deal.
| Differences | ICO | IEO |
|---|---|---|
| Fundraising Support | Project creators lead the fundraising support process in ICO | But In IEO, the raising support happens at a crypto exchange. |
| Security | There is no screening or validation regarding ICO projects | Crypto exchanges screen the financial activities to know the details of the project dispatching on its foundation to know the validity of the project. |
| Smart Agreement | Smart Agreements are overseen by the investors | Investors don't need to oversee the smart agreements as the smart agreement are being overseen by the crypto exchange. |
| Know Your Customer | No Know Your Customer Involvement | There is a Know Your customer involvement in IEO as customers are required to go through identity verification before partaking. |
YES, Initial Exchange Offering can be considered as an advantageous way of investing.
In cryptocurrency, there are lots of ways to invest which varies in multiple phases, where we have Defi Investment, Yield Farming, and Crypto Staking as well, all these modes of investment have only one thing in common which the main idea of the whole is to make rewards in return.
But the only thing that varies in all these is their level of risk and the assurance that comes with it. Just as we know in Yield farming, Investors lock their assets to make a profit in return in some amount of time, same goes with delegating SP on steemit as well to earn a return in curation rewards, All these patterns all fall under crypto investment but where ICO and IEO standout is that they are like Funding or let me say purchasing shares in a current ongoing cryptocurrency project.
The major advantage that comes with IEO Investment is that it has already been vouched for by an exchange which thus proves that, the investment comes with certainty where users get to own some shares or at least own some amount of native tokens of the project.
The level of risk in IEO investment as well is extremely low when compared to other investments, the certainty that the project will come to life is sure and as well its easier to make large profits when partaking with IEO with Less participation, in a sense whereby investors only need to register their identity with the company, invest there asset and that's all, no need to carry out any validation and all that.
The benefits that come with IEO are at large when compare to other methods of funding crypto projects, on below tabs, I will be listing the advantages and disadvantages that comes with IEO
Advantages
Exchange Involvement: One of the major benefits of investment with IEOs is the client base of the trades whereby the participation happens on a trusted exchange where users don't need to have the fear of losing assets in the process.
Level Of Trust: There is more level of trust that comes with IEO as funders are given assurance that the current project will surely come to pass since the participation is already been vouched for by a trusted exchange and as well been investigated on the exchange.
Rewards: The other advantage of fundraising is the promising level of reward, just as we know that IEO is a situation whereby, You as a user offer your asset to a current project before being listed which you get rewarded after the project has gone live, which you thus make double of your asset assuming the project surges way up which thus proves you get to earn multiple more by participating in the project funding.
Know Your Customer: The KYC involvement thus make IEO projects safer, and trustworthy as a crypto investment have a way of scamming or embezzling but this is negligible in IEO as there is a third party monitoring the process whereby for any user to be eligible to participate at first, you must ensure your identity is known to an exchange, which thus eradicates any level of risk and makes it safer as an investment.
It's a durable investment for beginners as the level of risk is minimal regardless of the loss is limited.
Disadvantages
The major drawbacks of IEO is that the listing might not be as valuable as expected which is uncommon but it is still a possibility where this gets to affect investors after funding with some amount of their asset and were unable to make up to the reward as expected after the investment got listed and the investment doesn't get to its Token price as compared to the value during IEO.
Centralized: This might be another drawback in IEO as most investors like the idea of remaining invisible but this is almost impossible with IEO as users are required to put down their reputation before being eligible for participation.
Question 4 - Explain how to participate in an IEO, for the process explore various exchanges, choose one of them and explain the process. (Use from screenshots.) (No need to participate, just register, present proof of verified account and explain the whole process, do not use Binance)
Participating in IEO is quite straightforward, one of the important things to take note of before participating is to ensure you have done your advanced research on an IEO project before considering participating in it.
To participate, one first needed to know that you are required to open an account with the exchange at first, make sure it's verified by you presenting your identity information, then you visit the exchange launchpad, in this case, you are giving third party access to your account. One importantly we should know that IEO investment only takes place on a centralized exchange.
Afterward, you own a token of the exchange before you get to participate in the IEO, for example, if the exchange you funding is listed on Huobi Global, you have to possess at least some amount of Huobi Token(HT) as only the Average amount of the token you own will be used to back the Crypto Funding of the IEO project you will be participating on.
I will be showing the list of some exchanges that took part in vetting and investigating an IEO project.
- From the Coincodex, you get to click on All Launchpad to see the available exchanges, the exchange list is being displayed based on ranking as we get to see Binance exchange, KuCoin, Huobi Global, and others follow.
- IEO's on Binance
From the image above, we got to see top IEO's On Binance as we get to see the IEO's Name, Their CURRENT STAGE, the LAUNCHPAD which is binance, The each IEO START DATE, their END DATE, and as well their Return of investment ROI [USD].
- IEO's On KuCoin:
From the above image, we get to see IEO on Kucoin By their current date as we get to see that there is no current ongoing IEO on Kucoin exchange as the last IEO ended 4 days ago which is the (Chumbi Valley) project, which did end with 76.85x(ROI).
- Huobi Global IEO's List:
The above image is the current IEO's last Listed on The Huobi Global Exchange.
- gate.io IEO's List
The image above shows the (gate.io IEO List) with their current stage and as well the IEO name, end date, and their Return of interest.
- Bybit IEO's List:
The image above shows the IEO's Listed On the Bybit Exchange.
The Exchange I will be exploring its IEO is the Huobi Global exchange, where I will be showing how to register with the IEO listed on the exchange so that users can be eligible to participate.
- The first thing to do is click on the Huobi exchange, and click on the IEO you'd like to participate on just as in my case, I choose the "Rikkei Finance", then click on it.
- Then afterward, we click on Visit Launchpad
- Which thus take us to the part where we get to sign up base on our preferred choice of email or phone number, in my case I choose Phone number as I input my phone digits and input a strong password, and await verification.
- Afterwards, I was to verify "I am not a robot".
- A verification email was then sent to me, which I did have to put on the Huobi to make confirmation of my registration and my identity.
- Account Successfully Created.
Question 5 - As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
The Successful IEO Token that has been listed I will be discussing is the Manchester City Fan token, The IEO project ended Dec 10, 2021, which was 11 days ago when the Manchester City Fan Token started the IEO project on Nov 11, 2021, on the Binance Launchpad.
The Manchester City Fan Token was built on the chiliz blockchain which was to encourage Manchester City Fans to take part in decision making and as well to enable the Club Fans to take part in the club influencing.
As we can see, the chart below shows that the analysis of the Manchester City Fan Token after the Launch on Binance Launchpad, currently the token ROI is not available and as well I was unable to see the Fund Raising total value.
From the date of the Launching on Dec 10, the token didn't spike in value despite the launching on DEC 10 the token price was still been stable not until DEC 21 2021 when the price then sparked high to the price of $11.12.
| Manchester City Fan Token Price | $10.06 |
|---|---|
| Market Rank | #695 |
| circulating supply | 3,508,140 CITY coins |
| maximum supply | 20,000,000 CITY coins |
| Current Stage | Trading |
| Launch Pad | Binance |
| Token sales Starting Date | Nov 11, 2021 |
| Token Sales End Date | Dec 10, 2021 |
Initial exchange offering is another simple mode of crypto investment that is basically for beginners, The level of risk involved in the IEO's investment is low when compared to other modes of cryptocurrency investment as the Project takes place on the verified exchange.
one of the major advantages of the IEO is the involvement of exchanges(Third parties) as this mode of investment come with validation and investigation from the exchange as the project is assured of success afterward, but one as an individual needed to do extra research before considering a project as an investment.
Importantly, the assurance that all IEO project is High but the risk can't be ignored as well as a case whereby the value didn't spike to speculations which is why it is significant to risk only what you can afford to lose.
Here comes the end of my submission to the assignment, as I have read and understood the topic Initial exchange offering and binance launchPad. Special regards to professor @nane15, it is a privilege to participate.
Steemit Cryptography Student: