Bittrex Calls Off its First Initial Exchange Offering (IEO); Know What is IEO?
In 2019, the alternative of ICO is here, Initial Exchange Offering (IEO). Amid the present bearish market, cryptocurrency exchanges such as Bittrex announced the new method of token sale calling it as Initial Exchange Offering (IEO). The exchange will conduct IEO for a blockchain endeavor called RAID.
The announced was made on Monday (March 11, 2019), it would be the conducting this token sale for a blockchain project named RAID (XRD), Later today the exchange announced that it has called off its first Initial exchange offering via a tweet. The exchange has also said that it will update its user with more details soon.
Trust and integrity are the most valuable assets of Bittrex International. As a result of significant, last-minute changes with RAID, we have cancelled the IEO offering of the RAID token. We apologize for the inconvenience. We will provide a more complete statement shortly.
— Bittrex International (@BittrexIntl) March 14, 2019
Before we get into IEO, we need to understand, what is Initial coin offering (ICO)?
ICO is an unregulated and controversial means of crowdfunding via the use of cryptocurrency, which can be a source of capital for startup companies. In an ICO a percentage of the newly issued cryptocurrency is sold to investors in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum.
Pros and Cons of an ICO:
- Token Offering Concept
- Duration and Investors Coverage
- An Absence of Security Token
- Not a guaranteed process
- Openness nature towards the investors
- Pool groups killing the purpose
Due to its cons, it has high chances for exploitation. Anyone can launch an ICO, as long as you have a white paper to convince investors to put funds into your company.
What is Initial Exchange Offering(IEO):
As opposed to the standard ICO, where budgetary experts send resources for a smart contract, an IEO part needs to enroll (and, rule talking, affirm) on the exchange, trade advantages for the record and in the wake of starting the token arrangement, purchase coins from the exchange directly.
Pros and Cons of Initial Exchange Offering
- Reduces promoting costs
- Investor gets trust of an Exchange
- Immediate listing
- Increases exchange volumes and salary
- Immediate fluid
- Nothing is free
From this IEO, a startup can acquire benefits from the token deal just as in return. No doubt with all the scams and exploitation IEO seems to be the better model for the customers. Despite more processes required for both project teams and contributors for the token sale, the extra protection offered is worth the cost.
Is Binance launchpad similar to Bittrex IEO?
IEO and Binance launchpad sounds similar. Binance CEO CZ also tweeted to Bittrex exchange saying Glad to see more joining the club.
Glad to see more joining the club. We firmly believe blockchain fundraising is the killer app. Let’s use it to help our entrepreneurs and #BUIDL our #crypto industry, and other industries after that. (happy to promote a peer to grow the industry) https://t.co/DVbZRAEB7n
— CZ Binance (@cz_binance) March 12, 2019