[Initial Exchange Offering and Binance Launchpad ] - Crypto Academy / S5W6 - Homework post for @nane15

Hello everyone 🤗

Let me seize this opportunity to wish everyone the compliments of the season and a prosperous new year ahead..💝💯✨
Today,I will be working on the assignment by professor @nane15 .I have gone through the lesson and I must say it is exhaustive.
please enjoy☺️

HOMEWORK

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Explain in your own words what an IEO is

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IEO which is an acronym for initial exchange offering is a fund raising or crowdfunding initiative or method utilise by new start-up companies which require them to sell utility token to interested investors through a crypto exchange platform.

The exchange where this token are exhibited are now in charge of the token sales, after they must have properly scrutinize and carried out due diligence on the project to validate it credibility as a good investment.

It is imperative to note that IEO came to existence in January 2019,when binance launchpad launched the BitTorrent token(BTT).

One of the reasons why IEO is popular and widely acceptable in the cryptocurrency world today is the fact that it is easy to participate in.

The IEO is no doubt a substitute for the ICO which is one of the most popular fund raising initiative or method in the cryptocurrency world today.
Both the IEO and ICO perform the same primary duty which is fundraising but the only significant difference between this two is that the unlike the ICO,the IEO execute the fundraising process with the aid of an exchange platform which will be in charge of the token sales.

Before a project can be exhibited on an exchange platform under the IEO initiative, there are some procedure and measures that these exchanges as well as the start-up companies have to follow before the project can be listed on the exchange platform IEO list.

•White paper drafting:-A new start-up company has to draft a white paper which will entail every single detail about the project.

•project submission:The start-up company will then register and submit the project to an exchange platform as an IEO project to put the exchange in charge of its token sales.

•Vetting Process:After the project submission,the exchange platform will carry out a scrutinizing process as well as diligence due to a considerable standard on the project token to ensure that it is worth any investment.

•Contract Agreement:Once the project is approved by the exchange platform,the start-up company will be requested to pay a certain portion of their utility token and also pay listing fee to the Crypto exchange platform before the commencement of sales.

Do you consider IEOs an advantageous way to invest? Explain.

Definitely Yes!
There are several ways to invest in cryptocurrency but only few are advantageous,one of which is IEO!

I consider IEO an advantageous way to invest because virtually it requires low risk unlike other investment plan or system.

Taking into consideration the fact that before an exchange will host a token project under it IEO,it must have conducted a diligence due to a standard level to validate it credibility as a
good investment.

Investors who are willing to invest needs assurance as well as guarantee to be sure that an IEO they intend to invest in is a good investment and worthy of investment,and the exchange platform is ready to risk their reputation by putting it on the line to provide that assurance and guarantee to concretize the fact that the investment is legit and not scam.

This fact alone is advantageous because the investors are rest assured that the investment requires low risk and they are not being scammed or dupe by some hungry project developers since the exchange that host the IEO project can vouch for the token credibility.

List advantages and disadvantages of participating in an IEO.

The IEO come with a lot of goodies but we still can't shy away from the detrimental side of it.
so in this part of this question,I will be highlighten the advantages and disadvantages of participating in IEO.

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ADVANTAGES

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•Trustworthiness:-One of the advantages of IEO is that fact that it is trustworthy.
Since IEOs are carried out with the help of a 3rd party which are cryptocurrency exchanges,which implies that any token that is listed on the exchange is sure to be legit and trustworthy as the exchange platform must have conducted a diligence due on the project before it will be listed on it IEO list.
Investors can be sure that they are not being scammed.

•Security:- Security is also an advantage of IEO.
The cryptocurrency exchange which host the project will be in charge of the security of the token and the token issuers wouldn't need to worry about the security of their token sales.

•Easy Accessibility To Tokens:
It is easy for users/investors to gain access to certain new tokens on the exchange,all they are require to do is to register with the exchange and they can purchase any token of their choice to participate in IEO.

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DISADVANTAGE

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•it is expensive to operate as it requires the startup company project to pay listing fee as well as a particular portion of it utility token to the exchange platform before it can be listed on their exchange platform.

•Some token project exhibited by some exchange are not legit,some of these exchanges do not carry out diligence due to a standard level before listing it on the exchange whereby putting investors in a position of high risk and sometimes investors end up being scammed.
These exchanges do not care about their reputation when listing this token,so it is advisable to run a personal background check before participating in IEO.

•It is centralized.An exchange platform can control the amount of token flow or circulation on the exchange for their convenience.

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)

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How to participate in IEO

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To participate in IEO is quite easy and simple as they can be found in most exchange platform.

For starters,You have to find a credible and trustworthy exchange that hosts these IEO projects and the IEO project you wish to participate in,that is after you must have done your research .

Then the next step is to open an account with the exchange platform of your choice which host the IEO project you wish to participate in.
You will be required to complete the KYC and AML verification phase when registering.

Once the above aforesaid have been done,you can now proceed to check the token you wish to participate in it IEO then purchase the coin into your account and then begin participation.

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Exploring Various Exchange

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To explore various Exchange that host IEOs,this can be done by visiting the website
coincidex

Log in to the website and click on All launchpad,all the available Exchange with IEOs will be revealed.
Click on any of the listed exchange to view it IEOs.

_{screenshot from coincodex}

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•IEOs list on Binance

_{screenshot from coincodex}
in the screenshot above,we see the names of IEO project on binance as well as the date/stage of the project and the ROI.

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•IEOs on Kucoin

_{screenshot from coincodex}

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•IEOs on Huobi Global

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•IEOs on gate.io

_{screenshot from coincodex}

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•IEOs on FTX

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•IEOs on Bybits

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•IEOs on Bittrex

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Choose One of them and explain the process

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For this part of the question,I will be choosing Houbi Global Exchange and I will be exploring one of it IEO which is MonoX.

I will be making use of screenshot to explain the process of exploration.

•Step1:click on All launchpad in the coincodex homepage interface and then select Huobi Global Exchange.

_{screenshot from coincodex}

•Step2:-After that,another interface will appear showing all IEOs under the Houbi Global Exchange,scroll down and select your desired IEO in the list.
For this assignment,I am selecting MonoX

_{screenshot from coincodex}

•Step3:After clicking MonoX under Houbi Global Exchange,a page will automatically open,showing some statistics about the token.
scroll down and click on visit launchpad.

_{screenshot from coincodex}

•step4:register by inputing the necessary information in the required space.
NB:you will be required to verify and confirm your Email address.

_{screenshot from coincodex}

step5The account creation is successful.

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An example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)

One example of IEO token that have succeeded and is still doing in the market today is MATIC

_{screenshot from coincodex}

Matic project started sales on the 24th of April 2019 on binance launchpad and ended sales on the 24th of April 2019.

The Matic project focus on solving the scalability issue on Ethereum blockchain by increasing speed of block validation and reducing gas fee.

_{screenshot from coincodex}

Statistics of Matic Project

Project	MATIC
Token	MATIC
IEO Platform	binance launchpad
End date	April 24 2019
Fund raised	$5.60M
price at IEO	$0.00263
current price	$2.58
ROI in USD	$982.74

CONCLUSION

The IEO can be said to be fund raising or crowdfunding initiative or method utilise by new start-up companies which require them to sell utility token to interested investors through a crypto exchange platform.

This method of fund raising is executed with the aid of a reputable exchange platform which inturn oversee the sales of the token.
One advantage of this initiative is the fact that IEO tokens are easily accessible by user and investors and it is an advantageous way of investment.

I wouldn't fail to acknowledge and appreciate the effort of professor @nane15 for putting together this wonderful lesson.

Thanks for reading through
_{regard: professor @nane15
Assignment by @dibie}