Initial Exchange Offering and Binance Launchpad - Crypto Academy / S5W6 - Homework post for @nane15
Hello steemian ...
This is my new post in the Steemit Crypto Academy community, on this season 5 week 6, I will be working on a homework from professor @nane15 with the theme "Initial Exchange Offering and Binance Launchpad”.
we will discuss it through the homework below:
1.) Explain in your own words what an IEO is.
Maybe how many people are still unfamiliar with the word IEO (Initial Exchange Offerings), but surely everyone knows what ICO (Initial Coin Offerings) is. ICOs are a means of raising funds for new coins. At the end of 2017, China began to ban ICOs, so crypto startups in the country began to look for other alternatives. The results of the search for alternatives to the ICO ban have reached an innovation, namely IEO. IEO is the same as ICO, which is a means of raising funds for new projects, the difference is that ICO uses a decentralized system while IEO uses a centralized or centralized system, which means that there is a third party in the IEO, namely an exchange, using a centralized system to give trust to investors because there are guarantees for the use of the IEO. . Apart from the difference in the system between ICO and IEO, there is another difference, namely, in ICO everyone can buy coins while in IEO it cannot be bought in general because the sale is not open to the public, only active exchange users can buy tokens at the IEO. To purchase tokens at the IEO we must have an exchange account where the tokens are sold and must also have funds in the exchange account. In addition to using funds to buy tokens, many also use native tokens from the exchange to be able to participate in the IEO. For example, like Binance Launchpad, to buy these tokens you can only use BNB coins.
How to work on IEO has several stages that must be followed. The initial stage of the IEO is that investors and project owners register with the IEO to be able to purchase tokens for investors and initiate tokens for project owners. Furthermore, the IEO will conduct an investigation and screening on every project offered to the IEO to ensure the security of the project from unwanted potential, usually, the IEO will analyze the whitepaper of the company that registered the project at the IEO and also the IEO will look for other reliable sources to ensure the safety of the project. After the project has been accepted at the IEO, the project owner will be asked for a registration fee to the IEO, and also the project owner will be asked to deposit several tokens so that the coins can be traded on the exchange. The next stage is that the IEO will issue a notification about a new token sale on its platform allowing investors to purchase tokens and raise funds. Then the IEO will list the new project coin on its platform to be marketed.
This strategy has proven to be able to make new companies increase their profits. An example is BitTorrent, which managed to raise funds of up to 7 million US dollars in a very short time, which is within 14 minutes after they started listing on one of the crypto exchange platforms.
2.) Do you consider IEOs an advantageous way to make an investment? Explain.
I consider IEO to be a profitable way to invest. By using IEO, not only certain parties will benefit, but all parties will benefit such as investors, project owners, and also the exchange platforms involved. The three parties involved in the IEO have their respective advantages.
There are many advantages that investors can get by using the IEO system. We can invest at the presale, which means the token price at the presale is cheap, when we invest at the presale we can get a quick profit. The more investors invest at the time of the pre-sale, moreover, investors make a quick purchase can make the volume of the pre-sale token increase, when the volume increases the value of the project will also increase, if the project has increased at the time of pre-sale, of course when it is launched it will be even more increase. Therefore, as an investor, you can get many benefits if you invest in IEO. In addition, because the IEO uses a centralized system, namely the exchange, and of course the exchange will do the best for each project, it makes investors more confident about the efficiency of the project at the time of pre-sale.
The advantage that project owners can have by using IEO is of course to raise funds to advance the project, besides that project owners can also increase the profits of the project. The process to advance the project also starts not from the launch of the project, but starts from before the project is launched which will certainly benefit the project owner more. This means that there are many benefits that project owners can get by using IEO to raise funds and of course project owners must also have a good project to benefit from not just having a project, because IEOs don't just accept projects but IEOs will investigate projects before accepting them.
The advantage gained by the exchange platform involved is that more users are using the exchange platform. The more good projects that register sales on the exchange platform, the more investors will use the exchange platform to buy new project coins. Moreover, if the platform has its token, investors will buy a lot of the platform's original tokens to purchase the new project's coins.
With the example above, it can be proven that IEO not only benefits investors, but IEO can benefit other parties involved. Therefore I consider that IEO is a profitable way to invest.
3.) List advantages and disadvantages of participating in an IEO.
Nothing is perfect in this world, although IEO has many advantages we must also know the disadvantages of IEO. Here I will mention some of the advantages and disadvantages of IEO.
- One of the advantages of IEO is its security because IEO works with a trusted exchange platform and also every new project will be investigated more deeply by IEO which makes the security even higher
- By using IEO, which means that there is a third party, namely an exchange, in raising funds for new projects, it makes investors give more trust to IEO because there are guarantees for IEO users.
- Provide benefits to many parties such as investors, project owners, and exchange platforms.
- IEOs are also known for their smoothness, apart from overseeing token offerings, IEOs also offer other advantages such as providing marketing support and development support.
- Requires a registration fee to register a new project, and later project owners may be asked to exchange a percentage of tokens in the form of fees or commissions.
- Although IEO has the advantage of using a centralized system because it guarantees the use of IEO, we have a disadvantage from using centralized IEO, the disadvantage is that the IEO can manipulate data at any time and others.
- Due to the very high volatility of the market at the time of presale, the increase and decrease in tokens can occur very quickly and drastically in a short time.
4.) Explain how to participate in an IEO, for the process explore various exchanges, choose one of them and explain the process. (Please use from screenshots.) (No need to participate, just register, present proof of verified account and explain the whole process, do not use Binance)
We already know that IEO is a profitable way to invest. If you want to use it, you have to register on the exchange platform involved in the IEO. There are so many Launchpads that we can choose from if we want to participate in the IEO, if we want to see the entire IEO list we can see it on the web https://coincodex.com/ieo-list/. Here's a view of the web.
In the initial menu of the web, we can see the entire list of IEOs. There we can see the IEO name, Current Stage, Launchpad, Start Date, End Date, and ROI [USD]. We can choose the IEO we want to follow as we wish. The list above is a list of all Launchpads, to see the list of IEOs on Launchpad that we want can be seen in the image below.
To view the IEO based on the Launchpad option, you can click as shown in the image above.
In the picture above, you can see several Launchpads to choose from, in the picture above only a few of the Launchpads are visible, to see more, just scroll down. Here I will display the top 4 Launchpads in the image above except for Binance.
The four images above are a list of IEOs from 4 different Launchpads. On the website above, we can also use filters to more easily see IEOs in the ongoing, upcoming, and IEO processes that have ended, to use these filters, you can click as shown in the image below.
Here I will explain how to participate in the desired Launchpad.
Step 1
Select the desired Launchpad to participate in the IEO. To select the desired Launchpad, click the All Launchpad section as shown below, then search for the desired Launchpad, here I will participate in the KuCoin Launchpad.
Step 2
After seeing the IEO list on the Launchpad option in step 1, then select the desired IEO, here as an example I will choose the IEO with the name Velo. To select an IEO click on the name of the IEO option.
Step 3
After entering the IEO of choice, there we can see various information from the IEO of our choice. To participate, click on the VISIT LAUNCHPAD section.
Step 4
After clicking on VISIT LAUNCHPAD, we will be brought to the selected Launchpad platform, here I am directly under the KuCoin platform and immediately register an account on the selected Launchpad.
Step 5
To register an account on Launchpad KuCoin, you can use your phone or email. Here I use email to register on Launchpad kuCoin. To register, first, enter your email, then click on the send code section.
Step 6
Next, check the email that was previously used in step 5 to get the email verification code as shown in the image below.
Step 7
Then this is the email verification code section with the code sent in the email in step 6, and also fill in the password with a minimum of 10 - 32 characters. After the three sections have been filled in, don't forget to check the I have read and agree to the Terms of Use section. Then click Sign Up.
Step 8
After success, there will be a notification that the registration has been successful, and we will be immediately taken to the initial page of the Launchpad option as shown in the image below. In my case, the notification that the registration was successful was so fast that I couldn't screenshot it.
5.) As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
Previously, I explained in number 1 one of the successful projects at IEO, namely BitTorrent (BTT). BitTorrent is a platform whose main function is as a platform for everyone to share large files on a P2P network and of course at high speeds. The BitTorrent company is based in San Francisco and was founded in 2001 by Bram Cohen and Ashwin Navin. As for the BitTorrent platform itself, it was created in 2018 by BitTorrent Inc, and the company was acquired by Tron founder Justin Sun. BitTorrent's native token is BTT which is built on top of the Tron network using the TRC-10 token standard. BTT was launched on Binance Launchpad in early 2019 to be exact on January 28, 2019.
BTT sales use two sessions, the Private Pre-Sale and IEO sessions. The first session is a private Pre-Sale session starting on November 01, 2018, until December 31, 2018, with a price of $0.000177 and a token for sale of 108.90B. Then the second session, namely IEO starting on January 28, 2019, until February 03, 2019, with a price of $0.00012, token for sale 59.40B, Hardcap $7.20M, and personal cap max $20,000.00.
For info on the BTT token, see the image below.
As can be seen in the image above, BitTorrent has a token with the name BTT, the BTT token is on the Tron platform with available for sale 59,400,000,000 BTT (6%) of the total supply of 990,000,000 BTT.
As we can see in the picture above, the information on the founding of BTT is as follows:
- Launchpad : Binance
- For sale : 59.40B
- IEO Pic: $0.00012
- ROI : 22.69x USD, 1.61x BTC, 0.61x ETH
- Hard cap : $7.20M
- Raised : $7.02M
6.) Conclusion
IEO is one of the alternative systems that was created when China banned ICOs, using IEO certainly does not violate the law in countries that prohibit ICOs. IEO is a system that helps new project owners raise funds for the progress of their projects. This IEO uses a centralized system which means that there is a third party in its management, the third party is an exchange, in contrast to ICOs that use decentralized. In addition to benefiting new project owners in raising funds, IEOs can benefit investors as well as the exchange platforms involved, so IEOs is a profitable way to invest. IEO also makes investors give more confidence because all systems that run are supervised by third parties, namely exchanges, and also the IEO does not just accept every project, the IEO will investigate the project first before accepting the project to maintain the security of the IEO from projects that are not responsible, therefore making investors more comfortable investing in IEOs. Despite the many advantages provided by IEO, we also must not forget that nothing is perfect in this world, there are drawbacks to IEO that we must consider as well. But in my personal opinion, the disadvantages provided by IEO can be covered by the advantages provided, therefore I feel that IEO is a profitable way to invest.
References:
https://zipmex.com/id/learn/initial-exchange-offering-ieo-cara-kerja-keuntungan-dan-kerugian/
https://coincodex.com/ieo-list/
https://coincodex.com/ieo-list/kucoin/
https://coincodex.com/ieo-list/huobi/
https://coincodex.com/ieo-list/gate.io/
https://coincodex.com/ieo-list/ftx/
https://zipmex.com/id/coin-info/btt-id/
https://icomarks.com/ieo/bittorrent
https://coinvestasi.com/blockchain/panduan/pemula/apa-itu-initial-exchange-offering
https://selembardigital.com/apa-itu-initial-exchange-offering-ieo/
https://coincodex.com/ieo/bittorrent-token/
https://coincodex.com/ieo/velo/