Initial Exchange Offering and Binance Launchpad || Steemit Crypto Academy || S5W6 || Homework Post for @nane15

in SteemitCryptoAcademy3 years ago

Asslam-0-Alaikum! My dear friends of steemitcryptoacademy how are you all I hope that by the grace of Allah Almighty you will all be well and live your life happily. This is Season 5 week 6 of steemitcryptoacademy . Today I am here to perform my homework task given By our great professer @nane15.

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Explain in your own words what an IEO is.

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A token sale supervised by a cryptocurrency exchange is known as an Initial Exchange Offering (IEO). IEOs are only open to exchange customers, albeit some IEOs may take place across multiple exchanges. IEOs, like ICOs, allow investors to acquire new cryptocurrencies (or tokens) while supporting innovative crypto projects.

Many in the crypto community consider Initial Exchange Offerings to be the next step in the progression of ICOs. STOs were supposed to be a remedy for ICOs, which are unregulated and most of them turn out to be scams. Most STOs, on the other hand, are hampered by sluggish and expensive processes as well as suffocating rules. IEOs are a midway ground that addresses both sides' concerns.

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Although exchange-assisted initial coin offerings (ICOs) have been around for a while, After the launch of Binance Launchpad towards the end of 2019, IEOs began to gather popularity. According to ICObench, there have already been over 50 IEOs in 2019 that have raised over $159 million. Because the exchange's credibility is at stake, IEOs attempt to promote only legitimate projects. As a result, the vetting procedure is more thorough. The token sale team is also less likely to face regulatory ramifications as a result of the exchange's obligatory investor KYC checks.

IEOs are a new technique to crowdfund bitcoin companies using a cryptocurrency exchange as a middleman. Projects gain substantially greater visibility, interest, and legitimacy with the support of crypto exchanges. Token acquirer give a listing fee and an agreed amount of tokens for the use of IEO platform services after a successful IEO. The coins will be published on the exchange soon, giving investors access to immediate liquidity.

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Initial Exchange Offerings, like ICOs, have a predetermined number of coins available for purchase, a minimum and maximum number of tokens available for purchase per user, a soft cap and hard cap, and specialised accepted cryptocurrencies. Unlike ICO tokens, however, IEO coins are already produced prior to the crowdsale.

Furthermore, these coins are listed on exchanges a few days or weeks after their initial public offering (IEO), making it more convenient for investors (instant liquidity). In addition, the IEO process entails the use of an intermediary (the IEO platform), which is entrusted with the funds. However, this helps to boost investor confidence in the idea, which is lacking in most ICOs.

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Do you consider IEOs an advantageous way to make an investment? Explain.

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YES, it is beneficial to invest. Because when you participate in an IEO you can buys coins in a very discounted price and when its launching starts i price goes up and you sell it at a high price in this way you make a huge profit and it proves a advantageous investement. On the other hand you can hold these coins and sell it after the projects develop in this way you can also make a huge profit. It has many other benefits and it is less risky . We always see when a coin raise its funds its price show a spike of 50% 20% and 30% if you buy coins in discounted price by participating in IEO you can also sell it in 20% ,30% percent pump but remember one thing don't be in greed just take your profit and exit from it when its price increase because after increasing its price will also take a huge correction.

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Initial Exchange Offering (IEO) is thought to be a new form of Initial Coin Offering (ICO). IEO and ICO are two techniques for raise funds in order to introduce and sell their new cryptocurrency tokens. The big or major difference between these two, though, is security. People think IEO to be a better version because it is much safer.

The reason for this is that, unlike an ICO, an IEO employs crypto exchange platforms to distribute tokens to investors on behalf of the project owner, or token issuer. Only users of that exchange will be allowed to join the project this way.

An ICO can be launched by anyone, and you have no way of knowing if it is a scam or not. Furthermore, you cannot be certain that they have the necessary experience to deliver on their promises. There is no guarantee that your money will be returned if they fail.

However, IEOs are organised by exchange platforms, and they choose IEO projects with great care since they do not want to harm their reputation. As a result, they always select those whose objectives are attainable and reasonable. This is why IEO is regarded as a secure and advantageous investment option.

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List advantages and disadvantages of participating in an IEO.

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There are number of advantages and disadvantages of an IEOs that are given below.

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Advantages

  • Investor confidence has risen: Investors do not engage directly with the IEO project team, but rather with the exchange, which makes it more trustworthy and safe in the event that things go wrong.

  • Token issuers and investors feel safe: Token issuers benefit as well, because IEO platforms handle all regulatory issues, including as necessary KYC checks for all participants.

  • Easy-running process: IEO platforms make sure that practically anyone, regardless of their knowledge in the crypto field, may contribute with ease.

  • Guaranteed exchange listing: IEO tokens are guaranteed to be listed on the IEO exchange shortly after the IEO.

  • Scams are eliminated: The IEO project teams are not anonymous or fictitious, thus they will not vanish after collecting your payments.

  • Benefit to Project: Project benefits include increased marketing efforts by the exchange, increased credibility, exposure, and interest in the project.

  • Benefit to Exchange: Exchanges will benefit from new customers signing up only for the purpose of purchasing and trading IEO tokens.
  • Benefits to exchange token holders: Most exchanges employ IEOs to create another use case for their native token (if they have one), increasing its value.

DisAdvantages

  • Uncertain rules and limits: Many nations have imposed restrictions or outright bans on ICOs, which may have a negative impact on IEOs as well. The essential principles of an IEO remain the same, despite the fact that it is a little different beast.

  • KYC is required of all investors: Because the cryptocurrency community is known for its privacy-conscious members, going through the KYC process may be a big no-no for some.

  • Market manipulation: Because the majority of IEO Coins are pre-minted, you should always verify or confrim the token allocation and issuing dynamics before investing. Both the project owners and an IEO exchange may keep a excessively high number of tokens for themselves, potentially causing price manipulation later on. Furthermore, it is common knowledge that the vast majority of exchanges engage in "wash trading."

  • Pump and dump is still a possibility: Following a token sale, the value of some digital assets might skyrocket before plummeting.

  • A small number of investors: Many investors have complained that not everyone is able to purchase tokens during IEOs.

  • BOTS: Bots that can be designed to participate in IEOs and beat out human investors are a source of concern.

  • FOMO: Remember to conduct your own study and review the projects and their concepts. Both IEO project owners and IEO Institution have an motive to generate as much buzz as possible in order to sell as many coins as feasible. Check out the project's whitepaper, concept, and whether or not it even requires a token in the first place.

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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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  • First of all open the website Coincodex . In this website you know all the details of latest IEOs of every exchange . After that touch on the "3 lines" at the top right corner then you see an option of "IEOs list" Just click on it as shown in the picture below.

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  • After that you see All latest IEOs of all the exchanges as shown in the picture below. You can aslo select the IEO of a particular exchange . If you want to check the IEO of a particular exchange then just touch on the "3 dots" in the right corner.

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  • In the next step you see an option of "All launchpad" by touching on it you can select an exchange of your own intrest. If you click on All launchpad option All exchanges will open at the front of you like binance , Kucoin and many others . After that just "click" on the exchange you want to see the IEOs.

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  • After that I Check the IEOs of some exchanges like Huboi , Kucoin and FTX as shown in the pictures below.

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  • In the next step I visit the IEO of Kucoin exchanges and want to answer the question asked in this assignment. I select the IEO of Velo (VELO) coin and click on the "visit launchpad" option .

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  • In the next step they ask you to create an account on the exchange Kucoin .If you have already account on that exchange as I have then just put your email and password in the boxes and "press login". So in this way you can participate in a IEO.

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

TRON's legendary BitTorrent, which was deployed via Binance Launchpad in January 2019, was the first large-scale IEO. Approximately 7.2 million USD was raised after over 60 billion BTT tokens were sold out in minutes.

Following the success of Binance IEOs, other notable exchanges began to follow suit. Bittrex International announced yet another important IEO. In just 10.4 seconds, Veriblock (VBK) raised $7 million. So these are two some major IEOs in past but we will talk about Bittorent (BTT) .

When BitTorrent released software that enabled file sharing over a peer-to-peer network in the early 2000s, it won the hearts of many music and movie fans. Users joined a network of computers running software that let them to share files and data instead of downloading or uploading files to a single server.

Bittorent (BTT) IEO Details

Coulmn 1Coulmn 2
IEO(Binance Launchpad)
DateJan 28, 2019
Total tokens for sale89,100,000,000 BTT
Token supply990,000,000,000 BTT
Soft cap20,000 $ Dollars
Hard cap7, 200,000 $ Dollars
Raised7, 200,000 $ Dollars
IEO price0.00012 $ Dollars
ROI22.52 × UsD

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Today's Price and Details

Coulmn 1Coulmn 2
Today Price0.0027$
Market Dominance0.12 %
Market Rank57
Market Cap2 , 692 , 137 , 295 . 66

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The increase in the price and market Cap is very good . This project develop a lot from their IEO. Its price increase is around 1600 % thats mean it had a successfull IEO.

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ConClusion

IEOs have a lower failure rate than ICOs. But just because they're safer than initial coin offerings (ICOs) doesn't mean they're impenetrable. As a result, you must use caution while selecting an IEO. Even if the exchange platform has verified the project and has previously hosted successful IEOs, you must still do your investigation. So do your homework on the project, the team, and their track record. Check to see if there is a market for the idea and if it has actual use cases. This is necessary to ensure that your investment in an IEO pays off. In this lecture I learn a lot about launchpads and IEOs . Thats a great topic . At last Thank you professor @nane15 For this informative lecture . I hope you will continue educate us with your knowledge in future.

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Some Pictures in this assignmemt is designed by me On Canva Application . Remaining Screeshots taken from Coincodex.com and CoinMarketCap Websites.

SUBMITTED TO DEAR PROFESSOR:
@nane15

SUBMITTED BY :
@malikusman1

THE END 😇

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