Initial Exchange Offering and Binance Launchpad. - Crypto Academy / S5W6 - Homework post for nane15

The creation of many crytopcurrencies and blockchain projects has resulted in a number of great innovations and the introduction a some amazing mechanisms. There are different reasons for these different innovations. Some of them are used to create awareness, market and user base for a proposed project while some of them are used to generate funding.

Still in this processes, individuals now have investment opportunities which can offer really amazing returns and rewards. The mechanism of initial exchange offering is of the creative innovations in the blockchain world.

Several projects have embraced this concept and many more are still coming up with theirs. As Prof. @nane15 has taken time to dissect this issue, I will be giving answers to the assignment questions below.

Explain in your own words what an IEO is.

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The acronym IEO represents initial exchange offering. The concept can we'll be deciphered from the words used. When there is a new new blockcain project that is being developed is moving towards the public launching, the developers most times would want to put out the token of the project prior to the official launch.

This is usually done using the platform if a centralized exchange where the token is going to be listed. Users of the exchange can exchange or swap their assets for the offered tokens. The token offering in this case is usually at a discount price which makes it attractive to people who hope to make profits from it when the project is subsequently launched and the token must have gained higher value.

So, a proposed project collaborates with a centralized exchange which evaluates the credibility of the project before accepting to host its token. The project then conducts a pre-launch in the form of initial exchange offering using the exchange as a mechanism for users to get access to the offered tokens and acquire it at a rather low price.

For the users, this is an investment tool as there is high probability that the token will cost much more than the price at which it is being offered in the IEO. In the event of the official launch, a user can sell off the token at a current higher price and make profits.( A token being of higher value at official launch is not a fixed occurrence as the project may not work out well and value rather reduces instead of increase.)

This serves as a means to:

• Assess the response of the population to the projects in terms of acceptability and patronage and

• To raise funds needed to facilitate the project.
  This process creates enthusiasm, anticipation, publicity and capital base.

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

Yes, I consider IEOs to be a good and advantageous investment because of some reasons.
My reasons include:

Most people who purchase and hold coins ans tokens have the aim that the token will appreciate in price and they will make profit off the sell. This is better done with buying the assets at reduced price. IEO presents a great opportunity for getting assets at a low rate ensuring that there will be greater profits when the user finally sells them off.

IEO has a better guarantee of security and safety. The fact that an exchange is used as base for the project is indicative of authenticity. Projects organizing IEO boast of greater credibility as a lot of background checks are conducted and high level verification are done.

The nature of IEO allows beginners and novice to have a chance of making money from crytopcurrency and also helps them get familiar with some concepts of cryptocurrency.

This makes it possible for more people to access a token which goes ahead to boost its value.

By the IEO event, a token is given visibility and made quite popular. By having a large user base, the prospects of the project are greatly increased. The risk potential of IEO is relatively low compared to most other investment paths in the blockchain industry and the chances of profitability are quite high. It is only on very few occasions that the price of the token at official launch does not get higher than the price at IEO.

By developing a user base for the token, the market capitalization and circulating supply is bound to increase Which further promotes the value of the token.

There is also a low propensity of defrauding considering the processes the token passes through before being out forward at the IEO.
These are the reasons why IEO is suitable as an investment choice for me.

List advantages and disadvantages of participating in an IEO

There is always need to evaluate objectively what the benefits and the dangers of thing are. The pros and cons will have us take a balanced, informed decision. IEO has some strong points as well as some weaknesses.

ADVANTAGES

• IEO offers easy access to users to own assets and be able to interact with and upcoming project. Users can own stakes easily.

• There is high propensity for profit making.

• Beginners in cryptocurrency do not need to go through the technical aspects of analysis to be able to benefit and participate in IEOs.

• There is high authenticity with IEOs as the exchange will conduct thorough verification before listing the token. There is lesser chances of users getting scammed.

DISADVANTAGES

• There are no guarantees of profitability. A project may not turn our as well as it was planned. This will obviously reduce the value of the token and holders will be at loss.

• The process of engaging in IEO sometimes require some level of expertise and skills which might limit some users.

• Most IEO projects are designed to favour only large investors. Users with smaller assets find it difficult to benefit from the offering.

• The key players in the project can manipulate the price of the token in their favour while being detrimental to others.

• These projects experience great centralization which is a major bane that cryptocurrencies are trying to solve. Since centralized exchanges are used, the whole process is also centralized.

• IEOs demand personal details and identification. This reduces the privacy and anonimity that blockchain is advocating for.

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)

Participation in IEO

To take part in an IEO, a user will first have to locate an exchange that is floating the process. Whether through a search or any other source of information.

Once the trader can find a suitable exchange where the initial offering is being carried out, the next thing is to conduct some investigation to determine how viable and functional the token and the project is.

The user should conduct a thorough fundamental analysis and decide if the token is worth the risk.

The next thing is for the user to check for details, requirements and procedures for taking part.

The price of the token, the necessary registration, the equity needed and other details should be checked.

The user can then proceed to acquire the offered token at the quantity and amount he wishes. In doing this, due diligence and care must be taken in terms of calculating the degree of risks involved.

Exploring Exchanges

Using the website coincided, I will be exploring some of the exchanges available there and the initial offerings available.

So, I first logged on to this site. There i found a list is many IEO projects listed.

There are different options to sort the various IEOs.

There is a button to get all the ongoing IEOs which it the first page that will be shown for all the exchanges unless a particular one is specifically selected.

Then, there is a button for upcoming IEOs which gives a list if IEOs that are planned for the future.

There is also a button for ended IEOs which list out all the IEOs that have been completed.

To get those of specific exchanges, I used the down arrow button on the top bar. Clicking the button a list of exchanges was displayed.

I was able to get to a page where all the exchanges associated with coincided were listed.

There are some of the exchanges and the IEOs that are being hosted or have been ended on them.

• List of exchanges and the IEOs listed on them.

FTX, ZEDXION and BITFINEX

POLONIEX, BYBIT and BITREX

BINANCE, KUCOIN and GATE.IO

As it is , most of the exchanges I explored did not have ongoing IEOs. Most of them have been ended while others have been postponed .

Registration on ZEDXION

I picked this exchange to register on. The token on offering also has the same name.

The IEO began on 29th October, 2021 and is scheduled to end on 29th December, 2021. The return on investment is estimated at 1.22 times the IEO price.

So, I clicked on the exchange icon.

The details of the token was shown. At the time of writing, the IEO price was $0.225813 with an increase of 1.06% in the last 24 hours. At the start of the offering, the price was $0.19.

I then clicked on visit the launch pad which took me to the homepage of the Zedxion exchange.

Here, the different pairs for exchange were listed.
The market chart for Zedxion was also shown which was in a decline of -17.5% at the time of writing.

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There are different buttons on the top bar of the exchange site. The one that interested me was the IEO option.

I clicked it and found the progress of the two tokens that were being offered, the ZEDXION and IRR TOMAN.

From here, I found out that a total of 190,000 USDT has so far been exchanged for the Zedxion token.

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I proceeded to tap the sign up button. I had the option of registering using an email address or a mobile number. I picked the email option.

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My email was requested and I was asked to supply a password. I did that, accepted the terms of service.

I proceeded to verifying the email.
I first had to complete a puzzle.

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I was to type in a verification code which was forwarded to my email.

I got the mail, opened it na found the code.

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I copied it na pasted in the provided space.

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The registration process was completed successfully.

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

A project that has successfully gone to initial exchange offering is DAR - MINES OF DALARNIA

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This is a project is a gaming decentralized application which is based on a play-to-earn system. It is built on the Binance Smart chain. Here, players mine and also collect some created items in the game. Some of the available items are minerals, rare relics, artifacts and others.

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The adventure game is based on the world of Dalarnia where there are different locations of mines to extract gems and valuables from the land of Dalarnia also has different settings and terrains.

The players control some game characters and have to learn some skills be able to overcome antagonistic monsters in order to gain access to the mines to collect the valuables. It involves unlocking different mInes and secret places in Dalarnia. The valuables gotten can be used to boost the features of the controlled characters.

DAR is the native token for this project. It is ranked #261 on CoinMarketCap. The token has a market capitalization of $325,413,516 USD and circulating supply of 123,200,000 DAR. The coin is put at a a maximum supply of 800,000,000 DAR.

The IEO for this project was conducted on Binance exchange. The IEO price was $ 0.0232. At the moment, it is $ 2.66, having increased by 9.64% in the past 24 hours.

IEO started on Oct 29, 2021 and ended on Nov 27, 2021. The official launch of the project took place on 4th November, 2021.

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Historical price summary.

The current price is a whooping 11,365.52% increase in value.

Surely, anyone who bought this token at the IEO has made excess gain. If an investor was able to sell the coin at the all-time high price of $4.91 which has reduced by 46.16%, then such a person would have made 21,063.79% gain. Even at the all-time low price of $1.6 which has since increased by 56.85%, then a profit of 7,141.38 which is still a massive margin.

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This is the beautiful and attractive package that IEOs offers.

All unreferenced images were taken from
Coincodex.com

CONCLUSION

The crytopcurrency industry is already a very interesting one. Yet, more and more interesting functionalities are making waves into the sector.

Initial exchange offering have been used in recent years to achieve a lot of purposes. It has also been exploited by many to make remarkable profits over the years.

Having a token pushed out into the market even before it's official launch is a great way to make and entrance and also conduct some rest runs.

Investing in IEOs is quite profitable, though it has its own disadvantages as well. Without care and attention, a user may still loose his investment if the project turns out to be a bad choice.

As with anything crytopcurrency, it is wise to thread with caution when exploring the various options that cryptocurrencies present. From evidence though, many projects which had gone through IEO have gone on to be very successful. I will surely try to apply to use this knowledge to invest in reputable future IEO projects. Great job by Prof. @nane15.