Initial Exchange Offering and Binance launch pad- Crypto Academy/ S5W6- Homework post for nane15

Hello friends,

With joy of heart, I humbly welcome you to my assignment post of re steemit crypto academy, on the topic initial exchange offering and binance launch pad
Without wasting much time, please follow along as we proceed

EXPLAIN IN YOUR OWN WORDS WHAT AN IEO IS

An IEO being an acronym for Initial Exchange Offering is a program usually conducted to raise funds when a new cryptocurrency is about to be launched on the blockchain.

An IEO is common to ICO, in that, they are both fundraising event, but the ico have lost appeal over the years.

The IEO is much preferable when it comes to fundraising because of their level of diligence.
A good example is that of the binance launch pad, this platform has rendered help to lots of blockchain projects by helping them raise capital for their cryptocurrency launching.

The IEO created when binance launch pad launched the Bit torrent token raised a fund of more than $7million.

The IEO is mostly used by new companies to raise funds for their project.

This fundraising process is done when the company work directly with a cryptocurrency platform to start the sale of it's token to interested investors.

Now, let's dive a little deeper to the origin of IEO.
IEO was created due to the negative events happening on the ico in the year 2017.
Back then, ico was the most frequently used for fundraising.

The ico worked in a way that one will present an under developed project with it's objectives, goals and visions and also present a token that will be sold to raise funds for the development of such project.

As time passed by, the ico started experiencing problems, and one of it, was the issue of security.

There was no security guiding any token advertised by the ico, any investor Participating in the ico, was doing it based on faith, because the invested funds are given to strangers that can disappear anytime with the invested funds.

This security issues of the ico led to the development of IEO. Although the IEO is used to raise funds for under-developed project with goals and visions, it is quite different from the ico.

In the IEO, the project is usually controlled by a known exchange, so in a sense, when you buy tokens, you are purchasing tokens endorsed by the exchange.

At this stage, the exchange is a trusted intermediary between the developers of the project and the investors.
Acting as an intermediary makes these exchanges to be very careful when selecting a project to endorse, because endorsing a fake project will ruin their reputation and also lead to loss of funds for them.

DIFFERENCES BETWEEN IEO AND ICO

IEO	ICO
It is promoted and endorsed by the exchange and the developers	It is promoted only by the developers
It's operation is controlled by a central authority	it's operation is not controlled by a central authority
It's investors are mainly users of the exchange endorsing it	It's investors can be anybody
It has a very low risk of fraudulent activity	It has a high risk of fraudulent activity
Token takes little period of time before it is listed	Tokens usually take a long period of time before it is listed.

Having understood fully what an IEO is, shall we proceed to the next task

DO YOU CONSIDER IEO AN ADVANTAGEOUS WAY RO MAKE INVESTMENT? EXPLAIN

As we all know, making an investment is the act of using ones funds to run a project that will yield a larger profit later in the future.

Personally, I consider the IEO to be an advantageous way to make investment, below are my reasons:

• An investor can easily become a whale of a particular token by investing much in it's IEO, and by becoming a whale, he will become one of the key partners of the project, and he can easily manipulate the market to his favor.

• Also, as an investor participating in the pre-sale of a token, there is a very high chance of making huge profit when the token is listed. For example, Mr A participated in the IEO of a token and got 1B pieces of such token for $1000, that is, he got each token at a price of $0.000001.
  Now when the token is listed and it's price rose to $1, Mr A will be having a total of $1B, and that's a huge profit.

• Also, by constantly running a genuine IEO, an exchange is in a sense promoting its name and building it's reputation.
  By doing this, lots of investors will be attracted to such exchange and this will make the exchange more popular, e.g Binance exchange.

• As an investor, Participating in IEO will broaden my knowledge on the activities of other exchanges in existence, and this will move me to become their registered member

LIST ADVANTAGES AND DISADVANTAGES OF PARTICIPATING IN AN IEO

ADVANTAGES OF PARTICIPATING IN AN IEO

• Investors have the opportunity of buying the tokens in bulk and at a very low price during their presale period. These bought tokens will later be sold at an higher price when the token has been listed.

• Another advantage of the IEO is that investors can freely invest without worrying about security, because the exchange is standing as an assurance.

• By buying a token in bulk during their presale period, an investor can become a whale of that project and thus have a great impact on the development of the project.

• It is very easy to be a participant, all a user have to do is to send funds to the exchange and the exchange will easily issue the tokens to the user.
  

  DISADVANTAGES OF PARTICIPATING IN IEO

• The under-developed project will be charged some money by the exchange which will be used as a commission.

• A token might still experience pump and dump, that is, after a token has been listed, it is still vulnerable to drastic decrease in price.

• Also, to participate in IEO, the investors will first have to pass through the verification stage of the exchange, which is most times frustrating.

• It is expensive to run an IEO .

EXPLAIN HOW TO PARTICIPATE IN AN IEO, FOR THE PROCESS, EXPLORE VARIOUS EXCHANGES, CHOOSE ONE OF THEM AND EXPLAIN THE PROCESS

The steps to participate in an IEO is not as complex as it sounds, just follow along and you will get the full gist.

• The first step to take is to search for an IEO that matches your sense of humor, and of course finding one is an easy task to do.

• Once a suitable IEO has been found, it is advised to make a good research on the project you wish to invest in.
  Or better still, search for a very reliable exchange and participate in it's IEO.

• The next step is to become a verified user of that exchange, by doing such, you have to complete the AML and KYC verification process of such exchange.

• Once that is done, you can proceed to top up your account and purchase the tokens of your chosen IEO project.

To practice this, let's visit coincodex, by clicking on it, the below will appear

Source

And by searching by clicking on the all launchpad icon, we will see a list of exchanges that is involved in IEO and it's available token for sale

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Below is the screenshot for huobi and it's tokens available for sale

Huobi

The Screenshot below is that of gate.io and it's IEO

Gate.io

The screenshot shown below is that of FTX and it's available IEO project

FTX

Here also is that of bybit and it's corresponding IEO project

BYBIT

The below is that of kucoin and it's IEO list

KUCOIN

There are numerous exchanges and numerous IEO list on the above visited website.

I then proceeded to register with one of the above mentioned exchanges, and I ha e chosen to get registered to the kucoin exchange.

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• I then clicked on the second token named velo as seen above, then the below appeared

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• I then clicked on the launch pad icon as illustrated above and the below appeared

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• I then proceeded to input my details correctly and then click on the send code icon, of which I verified it's captha and a verification code was sent to me which I inputted and continued

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• I then proceeded to reset my password after which I submitted and the below appeared as a proof that my account has been successfully created

Source

To go further to participate in the IEO, click on PC as seen below

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Then click on luck raffling drop down and then click on spot light hot as seen below

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After clicking on it, a new page will appear showing the list of tokens presently on IEO and those that have ended, then you shall proceed to click on anyone of your choice

Source

By clicking, a new page will appear, this page is one that will allow you to participate in the IEO, then to participate, one can easily click on the participate icon.

Source

It is also good to note that some criteria has to be met before one can participate in the IEO, just take a look

Source

Without fulfilling those criteria shown above, it will be impossible for one to participate in the IEO of a project.

AS AN EXAMPLE OF A PROJECT THAT HAD A SUCCESSFUL IEO, EXPLAIN THAT PROJECT. BE ON TOPIC. (USE FROM SCREENSHOTS.)

Although, there are numerous number of projects that ha e successfully being involved in IEO, I will briefly explain the ocean protocol.

Source

Ocean protocol happens to be a non-centralized data exchange protocol that is used to unlock data for AI.

Ocean protocol makes use of an advance blockchain technology that makes it possible to share and sell data in a transparent and secured manner.

The ocean protocol was founded in the year 2017 and it specializes with operations dealing with AI, NFT,etc.

The IEO of the ocean protocol was carried out on the Bittrex international platform and was ignited on the 30th of April 2019 and ended on the 3rd of may 2019.

The ocean protocol made a sale of about 4% of it's total supply which was close to 56million pieces of the ocean token.

During it's presale period, it was sold at a price of $0.130624 per token, but at the end of it's IEO, it's price dropped to about $0.03, experiencing a percentage decrease of about 70%, and this led many to say it was a scam and many sold off their remind tokens.

Source

The image above shows some details of the ocean token.

• It's price when this post was made is $0.991216
• It raised a total of $29.9M
• It has a hard cap of $32.8M.

The ocean protocol raised $22.1M in the ico stage, and further raised $7.8M through Bittrex IEO, , raised $1.55M through coin list, $117k through fractal and $150k privately.

Below is the one month historical data of the ocean token

Source

And right below are some significant analysis of the ocean token

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CONCLUSION

The creation of the IEO is a very good initiative, as it helps to raise funds to support a project, and it also saves investors from the risk of fraud that goes on with the ico project.

I sincerely thank Prof @nane15 for his lecture, I await your next lessons sir.