Initial Exchange Offering and Binance Launchpad. - Crypto Academy / S5W6 - Homework post for nane15.
1. Explain in your own words what an IEO is.
2. Do you consider IEOs an advantageous way to make an investment? Explain.
3. List advantages and disadvantages of participating in an IEO.
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)
5. As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
6. Conclusion.
1. Explain in your own words what an IEO is.
initial exchange offering is a method that basically allows new and authentic projects or startups or even companies to be financed by the financiers in exchange for tokens or cryptocurrencies. It’s a relatively new method and very popular among new traders because any new trader is fears that he will lose all of his money during trading and will be bankrupt. So by investing in IEO, a trader’s chances of losing his investment are pretty low and generally, projects in centralized exchanges usually are verified projects.
Known as an IEO for shorts, thies is where a cryptocurrency's exchanges overses the tokens sale. The benefits are clearly: blockchain project's go through a comprehensively vetting process where their White's paper is scrutinizes, and theirs crowd-funding drive will also get publicity.
a great boost to that A project's that's is selling its tokens, likewise, will be a good investments if it succeeded, therefore, you will not be able to bet on a project without the requires knowledge.
it more Security; Its meanings is that the investor buys the asset cheaper and sells high ( it will depends on many factor for this to working) therefore, it is born in needs of injections of money, to maintain a robust capital, with Which the project's can advanced and evolved .
2. Do you consider IEOs an advantageous way to make an investment? Explain.
IEOs have a number of advantages, one of which is that they are carried out with the assistance of a third party: the crypto exchange platform. Every project that wants to launch an IEO on the platform will be reviewed. Exchanges want to keep their good name, thus they pick token issuers carefully. That's how they'll be able to weed out potential money-laundering schemes.
Exchange platforms put their reputation on the line when they add a project. As a result, the initiatives they back are credible, and investors can be assured that the platform completed its homework before releasing the IEO.
To begin with, as an investor, purchasing this token during the pre-sale period increases your chances of making a large profit when the token is officially launched, as the asset's price may rise higher than the price at which you purchased it. You've already made a lot of money at that point. As we already know, the pre-sale stage is a stage of money raising, and if a large number of investors participate at that moment, the price of the tolen will begin to rise even further.
Second, the exchanges participating in the IEO project have the opportunity to promote themselves, as many of these exchanges may be unfamiliar to some investors; however, with the help of the IEO pre-sale on the exchange, more customers will become aware of the exchange and may begin to use it for trading.
Third, IEO is an important tool for generating funds and ensuring the continuance of any project. We recognise that carrying out these projects necessitates a significant amount of funding, which is often difficult to come by from a single source. As a result, the IEO serves as a means of raising funds to enable the project to continue.
3. List advantages and disadvantages of participating in an IEO.
ADVANTAGES
• There's a good chance you'll make a lot of money. The organisers of the IEO event and the platform on which it is presented do not simply throw the event together. As a result of the outpouring of support, the event is likely to be a success and profitable venture.
• The investors buy the token at a low price during the event and are likely to sell at a high price, resulting in a maximum return on investment for them.
• The event promotes the project and its staff, as well as the Crypto exchange platform on which it is held.
• The sale is made at the same price for all participants, which means that only a small group of people will have a motivation to sell their coins after they have been listed. For example, individuals who purchased tokens at a reduced price at the initial stage. This stops the token price from plummeting right after the IEO concludes.
• Because the exchange is accountable for executing IEO with its reputation, there are less potential for fraud.
DISADVANTAGES
• Due to exchanges' stringent selection criteria, the number of projects putting coins through IEO is quite limited.
• Due to great demand and limited time, the procedure for most applicants is rarely successful. When it comes to IEOs, the lottery principle forces investors to commit enormous sums of money to participate.
• AML/KYC is a requirement for all investors. Because the bitcoin ecosystem is known for being filled with people who are obsessed with their privacy, going through the AML/KYC process can be cruel to some.
• Price manipulation: Don't think exchanges are just acting as a middleman; it turns out that IEO coins are pre-mined. What would happen is that the project manager, including such IEO exchangers, would be able to gain a large number of tokens and so influence their price; in other words, they would be able to obtain tokens and control their pricing at their leisure.
• Remember to perform your own research and analyse the projects and concepts. Both the IEO project owners and the IEO Institution have a vested interest in creating as much hype as possible in order to sell as many coins as possible. Examine the project's whitepaper, concept, and whether or not it necessitates the use of a token at all.
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)
To begin, go to the Coincodex website. This webpage contains all of the information on each exchange's most recent IEOs. Then, in the top right corner, tap "3 lines," and you'll find an option for "IEOs list." Simply click it, as indicated in the image below.
Following that, as illustrated in the image below, you will view all of the exchanges' most recent IEOs. You can also choose the IEO of a specific exchange. Simply touch the "three dots" in the right corner to examine the IEO of a particular exchange.
In the next phase, you'll notice an option called "All launchpad," which you can select an exchange that interests you. If you select the All Launchpad option, a list of exchangers such as Binance, Kucoin, and others will appear in front of you. Then simply "click" on the exchange where you want to see the IEOs.
After that, as shown in the images below, I checked the IEOs of some exchanges such as Huboi, Kucoin, and FTX.
Next, I'll go to the Kucoin exchanges' IEO and try to solve the question posed in this assignment. I choose the Velo (VELO) coin's IEO and choose the "visit launchpad" option.
The next step is to register an account on the Kucoin cryptocurrency exchange. If you already have an account on that exchange, as I do, simply enter your email and password in the boxes and click "login." As a result, you can take part in an IEO in this manner.
5. As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
Troy, a global trading and asset management platform, launched the IEO token Troy on December 3rd, 2019, for a one-day period (close on December 4th 2019) During the IEO, 1 Troy was worth 0.005 USD, however it is now worth 0.1 USD as of December 2019.
Troy = Token
BEP2 is the type of token.
1 Troy equals 0.005 US Dollars
4 million dollars maximum
Token distribution: 26.09 percent private sale, 21.74% ecosystem, 17.39% team/advisor, 17.39c/o Lunchpad, and 13.04 percent mining incentives Troy was founded to give professional traders and clients with crypto-to-brokerage services. Troy has a fantastic risk management system, makes it simple for traders to trade and access pooled liquidity, assists with margin trading, and provides account management flexibility, among other things. The Troy token will be utilised in the platform for transactions, payments, and other utility uses.
Troy has continued to expand since their start, based on their current statistics, because its goals and purposes were reasonable.
The Troy network, as well as its ecosystem, continues to increase in value and volume.
6. Conclusion.
IEO is excellent and useful for exchange users since it is less hazardous and more likely to be well-executed, especially on well-known exchanges, making it easier for newcomers to purchase crypto assets and inject a specific asset into circulation in the crypto sector. Some IEOs are solely available for private sales, while others are offered to exchange platform members as pre-sales (public users). Users may be confident that more tokens will be introduced using exchange-managed smart contracts. This strategy allows new investors to launch a stable project while customers purchase tokens.