About two years ago, Initial Coin Offering (ICO), the fundraising market using cryptocurrency experienced an outstanding success. It represented the best alternative in raising money, but it was subsequently affected and rendered ineffective last year due to the drop in price of digital currencies in crypto market and other reasons relating to its operation.
Although there is no more cause to worry as Initial Exchange Offering (IEO) market is presently doing excellently well as the number of IEOs launched increased beyond 50 in 2019.
According to facts revealed by ICObench (16 IEO launchpads global monitor), IEO (initial exchange offering) market has unexpectedly experienced a mouthwatering increase in exchange offering globally.
The ICObench data revealed that Exmarkets launchpad launched the highest number of IEOs (11), followed by Probit launchpad with 10 IEOs. The leading exchanges such as Binance, Bittrex, Kucoin and Houbi were also involved with lesser number of IEOs.
Although, the past success of ICO has not yet been reached by IEO, but it is clearly a matter of time for it to outgrow ICO’s past achievements since it is a work in progress.
Initial Exchange Offering (IEO) created a totally new system, serving as intermediary between contributors and projects, and this only has been encouraging the world of cryptocurrency to join its moving success train.
Daily Chain News tweeted in March 2019, where it convincingly said that the world will continue to see the rise of IEO in 2019. In the tweet, the crypto content news channel itemised reasons why IEO is presently better than ICO.
At the beginning of this year I thought 2019 would be all about the STO
Now I'm 100% convinced we will see the rise and rise of the IEO (Initial Exchange Offering)
— The Daily Chain (@DailyChainNews) March 18, 2019
Although IEO had been in existence with little global notice since 2017, but it recently came to limelight in 2019 when majority of IEOs launches recorded, and it has been gaining the global trusts lost by ICOs.
Why IEO betters ICO
Indeed, Initial Coin Offering (ICO), has chances of raising more capital than Initial Exchange Offering (IEO) because its involvement is not limited to a certain group, but it has a particular risk attached to its system as fraudsters can also access ICOs to trick unsuspecting investors.
A lot of fraudulence ICOs added to the reasons why the model was abjectly abandoned by its pools of investors. While IEOs are most times controlled by a number of trustworthy exchanges like Binance, Houbi, etc. The trust level is the major reason why investors prefer IEOs to ICOs.
In both 2017 and 2018, scammers infiltrated ICOs, duping a number of investors in the process, which later attracted ICOs bans and many crypto fundraising enthusiasts totally lost interest in the system, but the emergence of IEOs has brought back the lost smiles.