Initial Exchange Offering and Binance Launchpad - Crypto Academy / S5W6 - Homework post for @nane15
Introduction
Season greetings to you my lovely friend how are you doing, I hope you're very much fine. Today, is a fabulous day for me to share with you my homework task that was given by professor @nane15 on the topic; "Initial Exchange Offering and Binance Launchpad." This topic is a very interesting topic that we will be looking on it based on the questions that was given by our noble professor one after the other with and understandable details. Let's get started with the task below.
Explain in your own words what an IEO is.
The words IEO is a terms that is used to classified Initial Exchange Offering. Before the launching of a new cryptocurrency project or blockchain product IEO is what is first requires to raise capital for such project to startup.
In a nutshell, IEO is regarded as a cryptocurrency exchanges that help new crypto projects that are starting to raise funds. It is conducted through cryptocurrency exchanges, which make it to be different from that of Initial coin offering (IOC). This mean that in conducting an IEO there is always a third party that is incharge of collecting the funds which is know as the exchange or platform. The purpose of a third party exchange in conducting an IEO is not just to raise funds for on behalf of the startup projects, but to help the startup projects in facilitating the sale of their token, registered users that have provided their know your customer (KYC) data to purchase the token before it is fully launch in the market.
Any crypto project that wish to carried out token sale on an exchange the project will conduct an IEO, and also the project will pay a fee for listing the crypto on the exchange. The reasons to this is because the offer of crypto token on IEO is not open to the public but for users of the exchange platform to participate. In the beginning our discussion I make mention of IOC, I will like us to look at the difference between IOC and IEO below.
Difference Between an IEO and IEO
Backed then, when a new cryptocurrency project or blockchain product is to be launch it is usually done as a means of crowdfunding through an ICO which allow investors to purchase into the exchange at a discount rate by buying the token at cheaper rate as soon as it's released, but today the case is difference.
Although, IEO and ICO are both similar when it come to launching of new cryptocurrency, since their are all aim at raising funds for startup projects.
The main difference between the IEO and IOC is that IEO is more safer than IOC since IOC is more risks than IEO. In IEO, users are allow to buy asset via tokens which is differ from IEO. Another one is that IEO make use of third party that promise to ensure that the transaction of users are highly secure.
Do you consider IEOs an advantageous way to make an investment? Explain.
The answer to this question is Yes I consider IEOs an advantageous way to make an investment,the reason been that any project that involves in funds raising can easily achieve it long term goal within a short period of time, based on this IEOs can offer investment that can be favorable. Buying of tokens that are upcoming earlier while knowing fully well that the token is going to be listed on markets soonest with a very nice liquidity, then I can say that is a very big opportunity for any investors that will consider IEOs, as an Advantageous way to make an investment because definitely, is a most that IEO token will rise in price once their are listed in market for trading to commence.
Now let's consider looking at this example where an investor A buy 10 DOT token during IEO for 0.00576 and the token become listed in the market and the value then rise to $2, then investor B later buy the same DOT that Mr A bought for 0.00576 for $2. With this example we can see that IEOs is an Advantageous way to make am investment because you will gain a lot from your investment.
List advantages and disadvantages of participating in an IEO.
Although, even as IEO is a good investment, there are some hindrance that is an investors do face even when their are to buy token at a cheaper rate. Let's get to know so of it advantages and disadvantages below.
Advantages
One of the advantages of IEO is that investors enjoy a enough user-friendly experience which make their contribution to blockchain project of product as easy as ABC since the platform is well designed in a simple way.
Investors are more confident and feel so happy to buy token that are on a trusted cryptocurrency exchanges which proof the project to be a legitimate project. With this its offer an investor feel more confident to buy as many token their wish to buy at a cheaper rate.
The platform offer high profit and numerous support in different aspects like marketing and development, which turn up to bring high profits when an investor buy an asset before it's been listed in the market.
Disadvantages
The cryptocurrency project will need to pay a listing fee and equally some percentage of funds is giving to the hosted exchange as a means of commission.
Most of the crypto exchange aren't straightforward,when the IEO market beginning to boom. What am trying to say here is that some crypto exchange due diligence is not carried out in a high standards before allowing investors to investing in IEO.
After a token sale,some token do rise very fast within a short period of time and then fall drastically with a short period of time, making the capital of investors to be at risk since the pump and dumps is at risk.
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)
As an investr, that want to participate in an IEO, the most recommendable way is for you to pay attention and carried out research on the different crypto exchange to enable you know what their IEO offers is. Although, you can visit IEO website to find out those offers that are good enough in IEO websites like; ICOMarks or Coincodex, which are website that shows the full list of several IEO offer on different cryptocurrency exchanges.
Now as an investor, immediately you have find an IEO that you are interested in the next thing is for you to look for the exchange that is hosting the IEO. At this point after you have look at the exchange that offer access to the IEO, the next thing is for you to register/create an account with the said cryptocurrency exchange that you have chosen.The next step after you're done with your registration is to complete the KYC/AML verification process of the exchange by submitting all your personal data that is required by the exchange.
At this point, once you complete your KYC/AML verification processes, you will then have access to check on the cryptocurrencies that you want to use to contribute to IEO. At this point, you can start by simply buying the tokens of an IEO that you wish to participate in.
Based on what I have said above, let's practically, look at how to participate in an IEO by exploring various exchange and the process in that are involves
Based on the explanation above, after you have finished with your KYC/AML verification process,the next step is for you to buy the of the tokens of the IEO that you wish to participate in. Literally, this process is not the same in each exchange but different, which means that you should understand and register the processes that are involves in the exchange you are using. Although, here we be practically exploring various exchange like; Kucoin, Houbi, OKEx and Bitfinex exchange from coincodex.com to see some list of IEO.
Kucoin
Screenshot gotten from coincodex.com
Houbi
*Screenshot gotten from coincided.com
OKEx
Screenshot gotten from coincodex.com
Bitfinex
Screenshot gotten from coincodex.com
How to Register in the exchange that you have chosen using process below.
Step 1: I go to Kucoin exchange via Coincodex.com and I then click on my preferred token as Chumbi Valley (CHMB) which is the first among the list as shown from the screenshot below.
Step 2: After I have click on my preferred choice of token I was then taken to another page where I then click on "Visit Launchpad" as shown from the screenshot below.
Step 3: After I have finished clicking on visit Launchpad I was then taken to Kucoin registration page where I have to input my phone number and a code was send to my phone I went and copy it and paste before I then click on Next.
Step 4: After I have inputted the code that was send to me I was taken to a page where I then create my password and re-enter it before I then click on Submit
As soon as I click on Submit boom my account became registered successful and redirected me to Kucoin homepage as shown from the screenshot below.
 |  |
|---|
As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
The first and foremost project that has a successful IEO was BiTorrent IEO in January 2019. BiTorrent which is a file sharing platform, was managed to raise $7.2 Million dollars with the help of Binance exchange.The sale of BiTorrent (BTT) tokens was fully completed by Binance Launchpad that begaan at 3:00 PM UTC in the same 28 January, 2019.The Sale of the Tokens was based on two sessions: which is buying using Binance Coin (BNB) and buying using Tron (TRC) which where speadly concluded on time.
History of the IEO Presale
In the Binance coin (BNB) session, 23.76 billion worth of BTT tokens were fully sold all to participants within that same hours of which the sale was announced. Whereas in the session of buying using TRON (TRX), all the 35.64 billion worth of BTT were sold out within 14 minutes.
As at the time of the sale of BTT, the price of 1 BTT was valued at 0.00001824 BNB and 0.00447261 TRX. This mean that as at that time 1 Binance coin (BNB) can buy BTT worth 54,824.56, whereas 1 TRX can buy BTT worth 223.58. As of then maximum amount of BTT that participants can purchase is 166,666,666 BTT, whereas the minimum that can be purchase was 100,000 BTT. Below is how far the project has gone from the beginning to the current date of today.
| Project Activities | Project Description |
|---|---|
| Project name | BitTorrent |
| Token | BTT |
| IEO platform | Binance Launchpad |
| IEO date | Nov 1, 2018 - Jan 28, 2019 |
| Funds raised | $7.2 million |
| Pice at IEO | $0.00012 |
| Current price | $ 0.002644 |
 |  |
|---|
Challenges Encounter Before and After The Pre-sale sessions
Before the pre-sale session some users from other part of the countries were restricted to participate in the BitTorrent token sale on the Binance Launchpad. Some of this affected countries are; Albania, Afghanistan, Mainland China, Central African Republic, United States of America (USA) etc were unable to participate in the token sale. Although, even after the pre-sale, users were faced with some controversy in such a way that accessing the IEO was a problem, due to the errors that occurred in the website of the exchange. User was unable to sign in to their account due Captcha failure.
Conclusion.
BitTorrent is a simple an affiliated blockchain project of TRON. It stands as a peer to peer (P2P) file sharing that supports content creators with the rightful and easy tools for content creators to distribute their content to others directly through web. For the fact that IEOs is better than ICOs in terms of securities and other of its features,is not a criteria for anyone to jump into it and start investing without studying or having a background knowledge of it into to make a better choice that would lead to the success of his/her investment. My sincere gratitude goes to professor @nane15 for the wonderful lesson which has make me to understand the benefits of investing in IEO.
Thank You So Much For Your Wounderfu Time Here My Reader. May Your Day Continue to Fill With Joy Always.
Best Regards;
Cc-
@nane15