Last year there was an alternative option ICO — Initial Exchange Offerings (IEO). Initial exchange proposals differ in that no project developers looking for investors for new tokens, and the cryptocurrency exchange selects promising teams and promotes their coins among their users. About it writes RBC Crypto.
The benefits and risks IEO
Many investors who invest in ICO projects, and did not wait for the token exchange. In fact, according to the rules, the listing of coins does not occur immediately, but after a few months after the end of licensee. In the case of IEO, the exchange undertakes and releases the coins in the first days after they are sold to investors.
In addition, the developers of cryptocurrency platform assess investment prospects and viability of projects, and therefore responsible for the outcome of krautsalat reputation. A best the ICO was available only to a closed circle of large investors. Primary stock offers, at least for now, designed for a wider audience.
Another advantage, which the developers say IEO, was the eradication of the gas wars. The main means of payment in ICO was broadcast. For transactions in Ethereum are required to pay a fee to the miners to confirm transactions and enter them in the new unit. As the price of the cryptocurrency ETH is constantly changing, the developers decided to simplify the problem and introduced an additional unit of calculation — Gas. She, in turn, is divided into two components — limit (limit gas) and the price (gas price).
Each miner receives a Commission which is calculated in the gas, and is paid in ether. The final cost of the Commission expects the sender, it sets the limits and the price of gas, and then multiplies one value by another. When the participants of licensee to ICO using the Ethereum blockchain, competed for receiving coins of new projects, they set high limits of the gas to increase the speed of transactions and be the first to buy tokens.
In IEO gas wars could arise due to the fact that exchange does not use air, and its own crypto currency for tomenselo. Despite the advantages, drawbacks primary of the exchange offer, too.
Investors are also risking their funds. Even if you consider the fact that the projects for krautsalat selected by the developers of the popular cryptocurrency platforms, there is no guarantee investors a large profit. Moreover, from 2018, it was not so much of krautsalat to be able to determine the actual benefits of new sites.
Legal uncertainty is another stumbling block. Regulators of different countries have not yet found the optimal way to control the work of organizations engaged in or ICO IEO. Therefore, from the risks no one is immune.
The principles of IEO sites
The exchange is launching a special platform for krautsalat. Then selects promising project, talks about it its users and calls the date of licensee. To buy new coins, customers must be holders of a certain cryptocurrency (usually tokens that are created by the exchange).
One of the popular schemes of the sale tokens in IEO: “first come, first received”. Users who will all send requests for the acquisition of new coins and get them very first.
Crudely sometimes held in several rounds, while the cost of coins from round to round may be more expensive. However, the developers of the exchanges shall have the right to invent new rules for issuing initial stock offers. Recently, the creators of the exchange Binance decided to hold tocancel format of the lottery.
How to participate in IEO
To participate in Krautsevich can only verified users of the exchanges. So first we need to choose the right cryptocurrency platform and register on it.
Today we know about the six exchanges that are already organizing or just launching tocancel:
- Binance (Binance Launchpad),
- Bitmax (Bitmax Launchpad),
- Bittrex (Bittrex IEO),
- Huobi (Huobi Prime),
- Kucoin (KuCpon Spotlight),
- Okex (OKEx IEO).
For every investor it is advisable to collect all available information about a new project to verify the benefits of the alleged deposits. Then read the rules of krautsalat, top up a digital wallet cryptocurrency and need to purchase coins.
To be at the forefront of investors need to follow the news exchanges via their official channels, and to learn about creating a new IEO platforms on the discussion forums or in a Telegram channels.
Publication date 27.03.2019
Share this material on social networks and Express their opinions in the comments below.