ICOs have become a relic of the past as IEO continue to be the dominant form of fundraising for projects. IEOs are essentially ICOs but are run entirely by a cryptocurrency exchange for improved efficiency, security, reach, and convenience.
With blockchain continuing its growth as a major source of tech innovation, it is no surprise that IEOs have become synonymous with fundraising for blockchain-based projects. Tokens have proven to be a versatile form of both fundraising and driving user incentives to generate a steady flow of capital needed to reach the next level of development.
IEO has managed to raise an incredible $2,676,171,109 year-to-date, with the month of May alone raking in an excess of $1 billion for aspirational blockchain projects around the globe:
- Cryptocurrency exchange Bitfinex raised $1 billion from May 5 – May 8, 2019
- $142,686,051 raised by Genesis Crypto Blockchain Investment Bank from Oct – Jan 2019
- Trading and investing accounted for over 50.3% of all IEO funds raised
For many projects whose ambitions lie solely on core project development, IEOs provide a major helping hand as exchanges boost their reach through marketing services and provide significant exposure through their own user base while also enhancing investor confidence due to a variety of security measures in place to prevent any fraudulent activities.
Another major benefit is the extensive due diligence that is conducted to thoroughly investigate the merits of the project team, their qualifications, a working roadmap to show their planned progression, and many other elements to prevent any spurious projects from potentially wreaking financial havoc on unscrupulous investors much like ICO once did.
Binance, the predominant force among crypto exchanges, was the very first to brand the IEO trend. Following the launch of their own BNB token ICO, Binance began to incorporate BNB for platform fees such as listing as well as for all IEO purchases. Their first IEO was a staggering success and helped Bittorent Token, which is owned by TRON founder Justin Sun, raise around $7 million.
The news spread quickly and Bitfinex was the next to catch a whiff and capitalize on the fresh new method of fundraising. During their LEO token sale, Bitfinex was able to raise an astounding $1 billion over the span of 10 days. With ICO a thing of the past, many other exchanges began to eye the scorching hot IEO scene.
Among some of the new competitors haling from around the globe, ProBit Exchange is one rapidly growing brand that has garnered global renown due to its highly successful IEO platform. They provide the quality security services needed in every facet of crypto business and their extensive vetting along with thorough guidance for new projects have attracted many IEO shoppers.
Blockchain projects continue to drive innovation in the industry, and ProBit’s list of upcoming campaigns include those providing a well-built solution centered on the major capabilities of decentralization such as CPUCoin, which is a project that aims to become the AirBnB of compute resources by capitalizing on the 30% of global idle output that goes unused and inevitably wasted.
Axel.Network is another project gaining increased renown due to its focus on decentralization and IPFS storage to enable the distributed storage of data with a major emphasis on data custody and control. Porus is a global remittance solution that aims to provide a stable currency which can accomplish a convenient means of payment while also paying for Porus technology usage.
These projects are just a drop of water in the massive IEO ocean that has taken the industry by storm, with exchanges seemingly being established on a daily basis as blockchain visions continue to be born.
IEO has carved out a significant presence
With IEO firmly entrenched and completely overriding the flaws of the now-extinct ICO model, projects are continuing to flock over to the new model of fundraising. Quality exchanges can serve as a guarantor that IEO projects onboarded and released to their userbase bring something worthwhile to the table for investors, while projects can benefit from the extensive community and healthy liquidity provided through the exchange’s trading infrastructure.
Opinions vary on how long IEO will dominate, with some critics comparing it to a game of roulette as the majority of control is completely relinquished to the exchange. Others believe that the entire IEO industry is essentially dependent on Binance’s success.
Which way the IEO trends isn’t guaranteed much like the success of an individual campaign, but with the continued success and billions raised for blockchain projects that will completely disrupt industries of the future with no sight of ICO making a comeback, it appears to be firmly entrenched for the time being.
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Last modified (UTC): September 23, 2019 11:46 AM