In the middle of 2017 and until the beginning of 2018 the ICO´s had a great boom and the often unknown projects attracted large capitals in dollars in a matter of minutes.
Then it should not surprise us soon this attracted the attention of the scammers, whose projects, as a rule, had no value to the industry and were often based on a multilevel marketing model. The new tokens rarely fell into more or less large exchanges, and if they did, it was not for a long time, losing most of its value after the announcement of the foreclosure or in the context of a significant market decline.
This caused market participants to lose faith in the prospects of the ICO´s projects, many of which disappeared without a trace after raising funds or, at best, violating the road map.
According to the analytical resource TokenData:
"In the first quarter of 2019, ICO´s projects attracted $ 118 million, 58 times less than last year, when the figure was $ 6.9 billion."
"By surprise, and in contrast to the expectations, the sale of tokens returned. Having changed the abbreviation to IEO and based on the exchanges. These being the key partners of the promoter company and the person in charge of guaranteeing the process."
What is special about IEO?
The main feature of IEO (Initial Exchange Offerings) lies in the fact that cryptocurrency exchanges are responsible for selecting promising projects and distributing tokens among their own users. Therefore, the main marketing efforts are transferred to the shoulders of the market, and developers have the opportunity to focus better on the product.
Benefits
Since the representatives of the Exchange are interested in the favorable outcome of the project and the long-term investment perspectives of the tokens, they are the ones who evaluate the viability of the projects. Therefore, the admission of the project to IEO depends completely on the professionalism of the exchange analysts, who perform a fundamental analysis.
With this process all the parties benefit:
For stock exchanges: attract new users, be the first to list new currencies, an increase in commercial activity and, consequently, the income of commercial commissions.
For developers: tokens are guaranteed to be listed on the stock exchange.
For investors: since many of them once invested in ICO´s projects without waiting for the appearance of tokens in the exchange.
When the haste for ICO´s decreased, the blockchain projects increasingly resorted to so-called adjustable tokensales: security token offers (STO) and other currency distribution options available mainly to wealthy (accredited) investors. IEO is available to a wide range of market participants, who only need to be verified and acquire a certain number of native exchange tokens.
Overcoming the Ethereum bandwidth barrier
When the ICO´s were established in 2017 and the beginning of 2018, in the context of a rush for initial offers, the participants of the tokensale competed with each other, then to increase the speed of transactions and be the first to acquire the prized tokens They established high gas limits. Bringing as a consequence the so-called "**gas wars**". Often the Ethereum network did not support the number of transactions due to its limited bandwidth this exuded its escalation problem.
IEO driver exchanges also use their native token, usually the ERC-20 standard. However, such trading platforms are centralized, therefore, the corresponding operations are carried out outside the Ethereum network. In other words, the IEO platform is responsible for loading, not the Ethereum blockchain.
FIRST IEO's
Binance
IEO appeared not now, but in 2017. Based on the then little-known Binance Launchpad platform, the tokensale of the BREAD ($6 million) and GIFTO ($ 3.4 million) projects were successfully carried out.
At the beginning of 2019 the Launchpad restart occurred and the first projects were BitTorrent and Fetch.AI. The collective sale of BitTorrent finished in less than 18 minutes, according to its results, 59.4 billion MTB chips were distributed (around $7.2 million).
There were many disappointments.
The users complained that there were technical problems. The site could not stand the influx of visitors.Some users did not see the purchase button, while others had an error message in Chinese. Some still managed to get to the purchase page, but there they found a message indicating that the application was in the queue and then a notification that the campaign had ended.
However, the sale was a success.
The BTT (Bit Torrent token) token soon appeared on the big UPbit and OKEx sites in addition to Binance. Just a week after IEO, the currency was trading almost 10 times more than the initial price. The rumor about the success of Crowdsale BitTorrent, obviously, stimulated the interest of the cryptoinvestors to the new form of crowdsales.
The success of the following IEO project at Launchpad was even greater: investors bought the chips from the Fetch.ai project in just 22 seconds, which led the organizers to raise $6 million. However, according to the head of Binance, only 2,758 of the 20,000 participants managed to buy tokens.
There were complaints. According to the opinions of certain users, most of the buyers were bots.
OKEx (Refining the Process - Evolution)
Not surprisingly, the impressive success of Binance Launchpad has inspired other important exchanges to open their own IEO platforms.
So, shortly after the BitTorrent crowdsale and opening Fetch.ai, OKEx announced the details of its first IEO project, Blockcloud, whose collective sale is scheduled for April 10, 2019. Almost at the same time, the exchange presented the rules for participation in IEO on the OK Jumpstart platform. OKEx decided to implement a subscription mechanism that only OKB holders can use.
Features of the JumpStart subscription mechanism of OKEx.
- The token subscription is open only for 30 minutes, or until the established application limit is reached. The latter is installed in front of each IEO, as well as the amount of project coins available for purchase.
- In the next step, the system assigns the distribution coefficients directly to the amount of OKB token that the IEO participants have. After completing the allocation calculation, the tokens are credited to the user accounts. At the same time, the corresponding number of OKB tokens is automatically deducted.
To participate in IEO, the user must have at least 500 OKB during the seven days prior to the tokensale subscription.
Bittrex
The first bittrex tokensale in IEO format would be held on March 15, 2019, but it had to be canceled because the Exchange authorities doubted the good faith of the project. It turned out that the Singapore company that issued the RAID tokens is ONERAID PTE. LTD - is not in the official registry of legal entities of the Corporate Regulatory Authority (ACRA).
Overcome this problem, Bittrex announced the VeriBlock IEO project. On April 2, the crowdsale lasted only 10 seconds.VeriBlock, whose main network was launched on March 25, allows other cryptocurrency networks to use the Bitcoin blockchain to counter "51% attacks". VeriBlock is based on the Proof-of-Proof consensus algorithm.Again according to the opinion of the users the tokens were bought by bots.
An opinion was also expressed on the need to rethink the approach to carry out the IEO.
Financial Paradox Without Loss - Crypto Market Stimulation It should be noted that the market has revived considerably with the advent of the first IEO. This is due to the fact that to buy the appreciated chips, native exchange currencies are needed, which must also be purchased. Therefore, the new money is poured into the market.
CONCLUSION
As we could see, the dissatisfaction of the users has been a common factor in all the IEO carried out so far.Measures should be taken to regulate these IEOs and democratize access to the purchase of shares.The main negative aspect that can tarnish the image of this new negotiation alternative is precisely the massive complaints of users who can not access.Intelligent controls must also be established. Well-developed codes that serve as a kind of firewall for scripts. The bots saturate the demand and prevent the "real users" from acquiring the shares in these crowdsales. Apparently, in parallel with IEO, there is a market for the bots that allow you to buy offers of tokens in a matter of seconds. After all, it is unlikely that all "live" market participants can acquire tokens in just a few seconds.If IEO sales are not regulated on time, in order to favor better distribution of the tokens and democratize the acquisition opportunity, we will be seeing the imminent death of the IEOs and their HYIP.
Hopefully, the HIGH PERFORMANCE INVESTMENT MARKET of the IEOs will not be as fleeting as the ICO's, but the IEO model is not free of defects.There is no guarantee that regulators will not participate in this area in the near future as investors risk their own money by participating in IEO. Because many crowdsales have not occurred, it is not possible to objectively compare different platforms with each other. There is also great legal uncertainty inherent in this area.
It is also possible that even the growth of the entire cryptocurrency market will also slow down with the first deep reductions in the prices of the new tokens and the decrease in the activity of the IEO, as it happened during the boom of the ICO´s in 2017 - early 2018. The emotion turned out to be fleeting, because in this area there were many FALSE projects that turned out to be ordinary scams.
#ph-venezuela
Our previous posts:
- https://steemit.com/ai/@jadams2k18/artificial-intelligence-to-our-rescue-bjvs2f3f
- https://steemit.com/blockchain/@fucho80/blockchain-life-the-number-one-event-in-the-cryptographic-community
- https://steemit.com/philosophy/@lanzjoseg/the-emotions-the-fear
- https://steemit.com/steemit/@juanmolina/letter-to-my-love-steemit
- https://steemit.com/blockchain/@fucho80/behavior-and-evolution-of-cryptocurrencies-ten-years-after-its-creation-what-to-expect-from-them-in-the-future
@juanmolina
Paypal: https://www.paypal.me/JuanJMolina
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We are in an early phase of emerging fintech tools, through time they will be further consolidated. Always safer to go with our mind than our heart. IEOs will definitely require more evaluation by market experts to be considered useful.
Totally true.
We can not turn around to shout the news that The Messiah has arrived.
We would be making the same mistake as with the ICO's. The perhaps excessive support in its early phase did not give the opportunity to assess its weaknesses. But since evil minds do not rest, they did see the "loose brick" on the wall.
When we managed to reassess the situation, we already had thousands of people cheated and a stain on the Blockchain image that has not yet been removed.
So basically this is a more secure version of an iCo? I like the idea of this. As always anyone looking to invest in anything should do their own research first of course. Very well written article.
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Regards dear @cryptoquandary.
The security lies in the renown of the Exchanges.
They will not risk their reputation in any project that will disappoint their investors.
Thanks for comment.
One line stood out in your post above all others:
"On April 2, the crowdsale lasted only 10 seconds."
The message for me is: Crypto markets are alive and kicking.
Liked Voted and Resteemed
Hi friend @sarez.
To paraphrase Dr. Frankenstein:
Oh yeah! The creature is LIVE!
Thanks for comment dear friend.
Hi @Sarez Sir,
This is an indicator for development of the Crypto market in the upward direction.
Good informative post. No matter what is sold to make it attractive or popular (to the common) people tricks will be used.
Is regulation needed and who will watch, control this? As long as the (national) bank are the biggest criminals I have less faith in it.
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Hello dear @wakeupkitty.
It will definitely be like this. Above all because it is an innovative process of very recent creation, it will have flaws in the system that will be exploited by criminals.
I hope that national governments never find a way to get their hands on the Exchange and blockchain processes. This would end financial freedom, which in my opinion is the greatest added value that cryptography has.
Thanks for coming.
very good post .
My taught about IEO is now clear .
last two IEO celr and fet looks like fail ieo i lost my money .
regulation should be needed in this area so people not lose their money .
thanks @juanmolina
I'm sorry to hear you lost money.
IEO's is a new concept. For this reason, all processes have not yet been refined.
Dear @juanmolina
Thanks for the memo and this article regarding IEOs is very informative and the details are explained very extensively as like your other ones.
“….then to increase the speed of transactions and be the first to acquire the prized tokens They established high gas limits. Bringing as a consequence the so-called "gas wars".
To be more appropriate, I see a lot of disadvantages and the above is one among them. By establishing high gas limits, those who pay more will get more and vice versa, oh sorry, I cannot even say vice versa because those who pay less will have nothing because they will get not less but a few crumbs, which I must say is very partial.
Your reply to Pete made me feel upset.
“So the more money you have, the more bots you can pay and the more tokens you can acquire. Then those who have less resources will keep the crumbs.”
Your reply to Chekohler is like adding salt to the injury and far more worse than the earlier one.
“ These sales are scheduled. They are within the exchanges and only members can participate.
It is like the "chronicle of an announced death".
That is, when we see that the sale of millions of shares occurs in 10 seconds, we can only think that the cake had already been distributed and as you say: only crumbs for the assholes.”
If at all these partial activities are excluded and if all are able to participate and get the shares without being taken by the bots, maybe then this IEO can be an alternative to ICO or else it is of no use even with the better security features.
hello @juanmolina
your article, very well explained.
Particularly I came to steemit after dedicating myself to trading for a few months, looking for options to help me financially in our country, then reading about the altcoin I found steem, and I'm still here.
The cryptocurrencies do not generally enjoy a legal framework that supports them, that I think is the main feature that makes them little showy for many investors. The use of bots for purchases in the ico, in the IEO, etc, is an evil that affects us all, bots are being used in all areas of life, increasingly, supplanting the workforce of the human being to a large degree.
The total confidence in this sector of cryptocurrencies is more and more up to date, but there is still a way to go.
Excellent post
I agree with you. The road to travel is much greater than the one already traveled.
Are you very interested in crypto, friend?
I see that you are from Colombia but you have publications that address the problem of Venezuela.
Thanks for comment dear @josevas217.
Hello friend Juan. I am Venezuelan, Venezuelan. Maracay state Aragua. I graduated from the University of Carabobo, only that I decided to leave Venezuela about 8 months ago.
Also, my mom and dad are still there, my grandmother. and through them I know that things are much worse than they were when I decided to leave. Due to my profession, I am a nurse and a doctor, I work for the state and I know the corruption that exists.
I'm interested in cryptocurrencies, a lot. If I could generate more income from them, for me it would be great. Some time ago I dedicated myself to trading, but you have to dedicate study time, h. or is that what I have left over, hehehe but yes, I have a lot of faith in cryptocurrencies.
Y ya en español, en venezolano, gracias mí pana @juanmolina por este post... es bueno informar al respecto.
Steemit y las criptomonedas en general han ayudado mucho a gran parte de la Población venezolana. A muchos.
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Claro que sí mi pana.
Mantente cerca de acá. Estamos conformando un equipo. Actualmente estamos en fase de proyecto. Pero si te mantienes en contacto, podremos saber de ti mas adelante.
Te hablo del Project Hope. #ph-venezuela.
Saludos hermano @josevas217.
Perfecto.
Estaré súper pendiente
Cualquier cosa. Me interesa. Revisaré a ver de qué se trata.
Ayudarnos es necesario, estando afuera o dentro. Lo importante es apoyar. Vale.
Tienes telegram? El mío josevas217
O correo? El mío [email protected]
Te podría enviar para contactarnos por WhatsApp también. No hay problema.
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te escrbí por Telegram amigo.
And the next big thing can be the STOs as the most convenient way to invest for the smart money capitalists.
STO, is very well weighted among potential investors.
Hi, my dear @juanmolina.
I hadn't heard about the IEOs either.
I like the idea that new projects are already within an exchange, which gives me some confidence that they are real projects and not scams. However, the fact that the robots are the ones who take advantage of the initial sale, gives me a lot of suspicions. It could be a new form of scam or it could also be a way to take advantage of the initial offer of the tokens. I suppose time will tell the truth.
Very good post partner!
It sounds like money laundering to me.
@juanmolina... You've done a very great job to come up with such an extraordinary post about IEOs... I am actually hearing about this for the first time though.
From what you stated, does this means that IEO can only be carried out by exchange platforms alone such that non exchange crypto related project can't take part in it?
Thanks or comment dear @hardaeborla.
It consists precisely in a cryptographic release. But the person in charge of managing the whole crowdsale is the Exchange itself.
They use your name and your track record as a guarantee that it will not be a scam. And also this guarantees that the new token will already be included in the exchange list.
ERC-20 has become pretty wide used in last few months. And I didn't like ICOs only because of the fact that you mentioned on the start of this report. Every user could see that over 90% of ICOs will never see the real market, and are mentioned as the "best startups" only to be funded in a way ..."fake it and disappear". IEOs have better future because IEOs serve as automatic upgrade of the system itself.
Hi friend @worldfinances.
Definitely the ICO's are bad. They have done a lot of damage to the cryptographic market.
With the IEO's come new opportunities. It is still a very recent concept and we need to see more results to define a criterion. Otherwise we would be making the same mistake as with the ICO's.
Thanks for comment.
Hi @juanmolina
First, thanks to you for sharing memo and I like your posts because you post quality content and reading your post helps me to increase my knowledge. Please don't hesitate to send me memo and I will add my comments for sure.
Now talking about the topic, you have nicely summarised about ICO and IEO. If I talk about me then I heard about ICO in late 2017 and 2018 and in late 2018 I heard a new word called IEO.
I see many ICO scams because in case of ICO no exchange is involved. After the issuance of token team sell out a certain percentage and then they work with Exchanges to get it listed and generally it takes too long for them to get it done.
In IEO, what i like is that exchange is involved since the beginning of sale so there are high chances for legit deal and better returns.
If you're aware that Actifit has started their first ISO (Initial Steem Offering) today in steem-engine.com exchange and it will be live for 2 days. So here what I am trying to say that it's the third word in this series.
Thanks Friend for a great write-up. Happy weekend.
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Dear and appreciated @alokkumar121. I knew that I could count on your comment.
I must definitely add this new term to my list.
This is precisely the highlight of IEO and the supposed guarantee for investors.
Thanks for this valuable comment.
Hello Juan and thanks for an informative article.
It certainly appears that the arena of blockchain and cryptocurrency continues in it's emulation of the Wild Wild West.
Are we seeing those who are unable to mount a successful ICO, now re branding and re marketing and morphing into IEO's.
It appears that there are becoming as many ICO's and IEO's as there are new coins being introduced.
It will be interesting to see how this all plays out and what new offerings will be presented in the coming months.
Regards @paulswansen.
I had never thought of it this way.
The most positive aspect of all this is that you would be injecting fresh money to the entire crypto market. This in some way benefits all of us.
Thank you for your comment.
Hi,
Thank You for the memo about this post, it's a good topic and I do have a too extensive opinion about it so, I'll just give my "2 cents" about what I think its the real problem..It's 'people'! Because both ICO's and IEO's have a 'trust' factor in them (beside that, both have advantages and problems, exchangers are a bit risky but for "low budget" work somewhat well, while not having "middle-man" might come at a higher price..), and the great majority of the population, whether for personal aspects/experience, or just due to corrupt governments creating an oligarchic social paradigm (actually in most places around the Earth), won't have the needed trust for the fully functioning of these protocols 'for the masses'..But that is just my view on the subject, and I'm definitely not an 'expert'..Thank You for inviting me and also for this well written post, it's for sure a needed discussion, if we all want to keep cryptos and blockchains in the right course to benefit us all, and not become another weapon of choice of the 'elites'..Have a great day mate, cheers.Hi friend @cyberspacegod.
This has been perhaps the best comment that someone could have left me. Thank you.
You raise me many edges. You talked to me about politics and social domination. Actually, politics should not exist. It's not necesary. Unless, of course, you're politician! Then you would need it to be able to continue taking your life of luxuries and traveling around the world.
So the problem is the people. Maybe you're right.
The truth is that with the IEOs at least you have the certainty that the token that you will acquire will be present in the exchange. This gives you the possibility of financial negotiation.
But you are right dear @cyberspacegod, the origin and end of all the problems of humanity, is itself.
Thanks for this valuable comment.
Dear @JuanMolina,
Thank You so much for Your feedback about my comment, and also Your view on the subject, I totally agree with everything You said.About the IEO's granting the presence of the tokens in the exchange, I think its a good thing but, imagine that in the case of a massive transaction of tokens, the exchanger just "vanish", tokens would be lost and unless they could be "recreated" there would be a big loss for both parts in the exchange, not saying that it would happen every time but it must be taken care in advance to prevent more mistrust from the people and grant the correct functioning of everything, maybe a bit of code that wouldn't allow exchangers to be deleted right after any transaction for a given period of time, but, I don't code in quite a while and don't know all the code behind blockchains and exchangers so I might be saying something not really possible in the terms mentioned.Again I really want to show appreciation for Your feedback, what You've said brightened my day a bit, Thank You very much friend.Have a joyful day, cheers.
This type of exchange of ideas where we respect and appreciate the opinion of the other, are the ones that are really worth establishing. In my opinion, this is where the essence of a cryptographic community lies.
Thanks for coming to my blog and bring this show of humanity. We're showing that Blockchain are not just a bunch of Hashes hanging around.
Now I feel important and part of the cryptographic community!! heheh.. Just jokin' =P
Glad that we share a lot of similar opinions, are able to recognize the differences and deal with them the best way possible, reaching a consensus, because at the end of the day we all want the same, more or less the best for us and the ones around us (even the 'elites' to some degree want that, but years of control and abuse might dictate the opposite..), and opinions are just that, everyone has a lot of them based on the knowledge and experience each individual have at the moment, but only when one decides to do something different than the usual, having into account others opinions it actually matters, at least in my point of view (don't really want to write a longer tl; dr; =× )..Also I'm the one that should be thanking You for notifying me about this, usually I'm very introvert but, sometimes I do feel that my "2 cents" might add something and these exchanges of opinion happen to my surprise, also must say that both @DarkFlame and @Crypto.Piotr have helped me a lot to maintain 'faith' in this community and as You, to 'surpass' my introversion (there are a few others..)..Thank you, and keep up the good work (btw, loved Your latest post of poetry ;) wish I haven't lost "my muse" so I could share beautiful posts like the one You did)I can feel that You are a good person.
It is a great honor to meet you.
From now on we will be "Hashesfriends". (That sounds a little crazy, LOL)
Hugs!
^^) thank You very much, I really try to be although sometimes I still lose it a bit, can't be perfect..
And it's also an honour to meet You 'Hashfriend'!! ^^P
@juanmolina, I don't know the In depth concept of IEO but in a way initially we thought that SMT projects will come up with the Airdrops on the basis of 1:1 Steem Power, but now we are watching different picture. My view point may sound ineffective and uncleared but definitely many will fail to afford the IEO Economy effectively. My opinion is shared just in regards to the Steem Blockchain.
Hi @chireerocks.
True! The more money you have the more tokens you can buy. Then those who have fewer resources will be replenished. The market is like that, supply and demand.
Hugs dear friend.
Definitely future markets will not be like that because change will come which will empower people and not just a company or project.
I notice you quite convinced of it.
Do you have any information about a future project that you want to share with us, or are these personal speculations?
It's nothing secret, i feel that because from years we are just seeing empowerment of companies and not people. But in my opinion shift can come which will empower people first. And if we see, Crypto and Blockchain is start of it.
I´ve this hope too my friend.
Let's hope for the best. Stay blessed.
I heard about Binance and Bittorrent sale, but didn't know there was a term or name for it. I lost interest in ICO's after I invested 11$ in the first one, don't remember the name, and I had nothing. I think IEO's can be more trusted since the exchanges are well known, so they won't risk their reputation on shit coins.
Hi @fredkese. I'm sorry you lost money. This happened to many people. The scams reached large numbers.
Hopefully, with the support of the Exchanges, investors will recover the lost confidence. Thus the entire crypto market could grow.
Thank you for your comment.
Definitely, overtime, more people will invest in IEO's as more exchanges become trusted.
Before we had ICO’s we had crowd funding for games and other projects.
Whilst there may well be plenty of positive’s to ICO’s and IEO’s .
You get a few scams and all of a sudden it makes people think twice.
I think ICO’s and IEO’s will be around for awhile yet as they do work .
We just need to be smart. Before investing, do your research and make a judgment call on wether you trust the business/person hosting the ICO/IEO.
That’s just my view anyways.
Have an awesome day!
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Thank you for that comment so successful, appreciated @mickvir.
You're right.
I would be very interested in the trajectory of the Exchange.
I hadn't heard of IEOs before reading this. I really don't see this going far because these coins can only be traded on the issuing exchanges. I believe, ultimately, coin placement dealers may arise to issue coins to the public while providing a quality guarantee. However, since the demand for coins is less than promoters think, the market only has room for a few more coins which differ from existing ones in power consumption, security and bandwidth.
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Hello appreciated @rufusfirefly, thanks for your valuable comment.
I think demand can be induced.
Every day we are more surprised by the creativity of the developers. The field of applicability of the Blockchain has no limits.
So when we do not think about acquiring any new currency, it is possible that a project that excites us will emerge.
Thanks again for commenting.
Hi @rufusfirefly Sir,
How do you do?
"........since the demand for coins is less than promoters think, the market only has room for a few more coins which differ from existing ones in power consumption, security and bandwidth."
With regards to your statement, a doubt arose in my mind.
Getting coins through ICO isn't safe, but at the same time getting coins through IEO is safer since the token will be registered in the exchange list. If that be the case, taking the security factor into consideration, why don't the demand for getting coins through ICO increase?
But Sir, you said that the demand will be less. Can you please throw light into my doubt?
Thanks in advance, @rufusfirefly Sir.
I didn't say that demand will be less, that is, decrease. I said it is less than promoters, who self-select for optimism, think. The evidence is the saturated crypto market which has driven a long (in crypto terms) price fall. Sure, blockchain is a new technology with very bright prospects. However, that does not translate into increased crypto demand. Blockchain's current and future main uses have nothing to do with cryptocurrencies. Tokenization of assets requires governmental support to comply with tax laws, a government nonnegotiable.
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@rufusfirefly Sir,
I really appreciate your swift response to clear my doubt.
Of course, you are right, Sir. If there is government support, none can control the crypto's massive development potential of filling this world with millionaires and billionaires!!!
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Crypto Exchange is dangerous
They often shut down suddenly.
Your cryptocurrency is placed on the exchange,
If it closed, your all cryptocurrency are swallowed.
So suggest,
The amount you put on the exchange,
Must control,
It is very risky.
Hi friend @cloudblade.
We would have to consider the Exchange sponsored by the IEO.
For example, since the beginning of 2018, Binance is considered the largest exchange of cryptocurrencies in the world in terms of trading volume, so a fortuitous closing of operations seems unlikely.
IEOs are really getting hype in the cryptospace but most of them are all pumps and dump you know. I would rather invest into ICOs other than IEOs because ICO seems fair than participating in an IEO which easily gets dumped once listed on exchanges.
Or better still invest into a solid STOs but for IEO, it has never been my plan to invest in any IEO.
Regards @ikkelins.
Looking at the positive side, we can realize that we have several options to choose from. You are one of those who still trust ICO.
As you say, STO may be the safest option.
Thank you for your comment.
@juanmolina I only trust ICOs with working products and not just any ICO that have only an idea. Also STOs are really the best for of investment into cryptocurrencies but earning from an STO is like earning from Real Estate investment. It's on a long term base
I can understand from your answer that you have already invested in some STO. I am right?
That's right and it is known as Organicco. Things are really slow at the moment but we have a product and we believe it would sell off in the near future.
Oh yeah i still believe in ICOs but not any pump and dump scheme that stems out from no where lol and yeah STOs are better just that earning from STOs takes time like earning from real estate investments.
Well, thanks for the briefing, but I do believe I'll keep my wallet in my pocket for now. Color me cynical.
I have one question. In the paragraphs between Ethereum pic and the Binance pic, you talk about "gas". What is this supposed to mean, in this context?
Regards @redpossum.
The "Gas" is the commission for operability that the Ethereum platform charges for realizing the transactions. The larger the amount, the faster the transaction is executed.
When an ICO is performed, the tokens must be acquired quickly, so Gas consumption is higher.
Thanks for comment.
Hi @juanmolina Actually I don't really understand about tokens or like the posts you make, by the way the contents of this post are very weighty in my opinion
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Thanks honey.
Ello there @juanmolina!
I got your memo!
Actually I have no idea or any information about IEOs. I just have read them just now in your post. Its quite interesting to learn new things. Thank you for bringing this up..
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Thanks to you for comment dear @maquemali.
Great post, I literally did not know what IEO was and thought it was just like and ICO renamed or something. IEO looks like a really great way of token distribution. The traffic problem you talked about is something that I think can't be solved easily.
Any website cannot work at Max speed when traffic is high. As for the bots your mentioned technique would work. Maybe creating more websites of the same exchange with many URLs might help in distributing traffic and solve lag problems.
This is my opinion. Thanks @juanmolina for the info about IEO. 😁
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Hello dear @n1hal.
You´re right.
But the results were quite satisfactory in terms of speed.
A high transaction rate was served. The fact that a sale of these is done in a matter of seconds gives a lot to think about.
This is where bots come into play (something that does not seem right).
I think they have several things to correct and refine the process. But in general it has certain advantages over the infamous ICO's.
Hi Juan,
I know what IEO's are. Great write up you did here.
Thanks man! You´re so Kind.
Dear Juan,
I just want to know about the companies who are regulating the IEO. Are they reputable ones? Are they impartial(are they not involved in the company that offers the IEO as an owner/creator or whatever connection directly or indirectly?)
Yes. It is exciting to offer token and coins and, ownership can even be classified as a bragging right. but, at the end of the day, when we examine most of them, they are not either profitable or just performing poorly.
Why not just tell the whole honest truth that this will fail 90% of the time? In that way the investors will not feel like they had been scammed?
Also, I believe that this is not the year for new ICO or IEO. Why not just utilize a collective coin for all the IEO offers there so that its value and adaptation will increase?
Hi @nurseanne84.
The organizers of the IEO's are the Exchanges. This being a relatively new concept, many of them have not been realized. In my post I took the example of three releases. Bittrex and Binance are worldwide recognition exchanges.
Binancen is considered the largest of them by the volume of operations since 2018.
Then the reliability of the process is based on the reputation of the Exchanges. They are responsible for selecting the projects and giving their support.
This idea has a lot of logic and sounds great. But I think it's very difficult to materialize because every company that opens in Blockchain creates a new native token for their Ecosystems.
Yours, Juan.
Yes. That is the issue. Why not create like, a uniform currency? Because the more tokens created, the slower they become adapted especially if it cannot even be converted into other tokens.
Just saying here that if we wanted the ICO to work, then, we do need to work together. Afterall, we're on the same boat...
With all respect and all the affection I tell you that: Although the idea is great and does not stop spinning in my mind, I think that "single currency" would become a utopia.
Like NEO, who stops the bullets.
Hugs dear @nurseanne84.
I do not think that in this business we can protect something. Even if the guarantor of the project are large projects. Sometimes a company can go broke from one wrong step. So I do not think that ICO / STO / IEO is cured. Yes, people are trying to find solutions today that will get rid of fraudsters. However, this is not an option.
IEO is essentially nothing new than ICO. I suspect it will be banned by regulation in the short future. If this is the drive force for current bullish market, it won't last long. However, I think current boom has a more solid foundation than 2017, 2018, because more and more DAPPs and applications are developing.
I agree. It will not be the IEO's that take the market out of the well where it is currently.
The Dapps are shown as the most sensible alternative. Although with the SMT´s we found an opportunity to grow new Tokens.
My dear @juanmolina, thank you for sharing this post, you did a great job, brother.
Do you think regulations are needed?
I think the process should be refined. Go correcting the weaknesses.
The regulations to which I refer would be the rules of participation established by the same Organizing Exchanges.
As we could see after the first IEO organized by Binance, small variations in the rules emerged. For example:
This is the type of regulations to which I refer.
Thank you for paying attention and really interested in the content.
Ok, I understand you should be monitoring the behavior and making adjustments. But I misunderstood.
Sometimes it´s like that.
IEO's are an improved version of ICO's. I believe they are more reliable in order to make any coin successful. Just like steemhunt IEO is going very well. Thank you dear for mentioning me in your post.
Thanks for commenting dear friend @arslan786.
I did not know that steemhunt had launched his token in the IEO mode.
Steemhunt token is live on daybit exchange
Great news.
Thank you buddy.
Friend @juanmolina.
As always bringing very good topics to collation, this is totally new, which is good and should be very useful what is interesting is how you explain it in a very good way and easy to digest and more for those who are in one way or another initiating our investments in this type of business.
Because in the end it ends up being a business for a lot and it is the way to multiply our money in profitable and stable investments.
A virtual hug for you.
Dear @juanmolina
Unfortunatelly mass media brought loads of attention towards bitcoin across the globe in 2017. Crypto space wasn't ready yet and that massive boost of popularity wasn't what blockchain needed.
Indeed. That was a very heavy blow. TRUST has been crushed and it may take some time for market to recover that trust.
Thanks for pointing us towards direction of IEOs. I must admit that I've never heard about it before. Everyday I seem to learn something new lol :)
I don't really understand that part. Meaning? Bots would represent interest of someone real, with real money and real resources, right?
Great read buddy.
Yours, Piotr
Hi friend @crypto.piotr.
Thanks for your analysis and comment. As always: Great!
By defrauding investor confidence, the entire crypto market was badly hurt. This could only get worse if it were repeated.
Hopefully with IEO no new cases of scams come. Up to now the guarantee is the popularity of the Exchange. There are many economic interests in play.
But because it is a new concept, there are still many aspects of the process that must be refined or "polished".
PS: you're right, the bots represent real staff with real money. So the more money you have, the more bots you can pay and the more tokens you can acquire. Then those who have less resources will keep the crumbs.
Hi @juanmolina. I received your memo. This post worth the time to read it. I think exchanges were creative, this is a smart move for them. If the exchanges filter out the projects, it will give some confidence to average investors.
This doesn't mean to blindly trust in IEO. As always is good to make some risk management strategy (a simple one is to open positions of equal size in different assets), and some research too.
Usually prices get very high in the beginning, but after some time they tend to decreased significantly. I usually wait until the hype ends, when I see that the project has some future. As always, this kind of investments involves high risk of capital loss, but I like to take some risks :)
Hello appreciated @danielfs
Actually for being a very new project (they started in March 2019) we have a lot to see yet. Its evolution and reign will show us the true face of the IEO's. For the moment everything is the color of roses.
Thanks for your valuable comment.
Hi @danielfs Sir,
Well said.
"...wait till the hype ends..... see that the project has some future."
Enlightening words to those who take abrupt action on anything new without giving a wait and without thinking about the pros and cons.
IEO's are just a lesser of two evils, theres is still a huge risk these projects fail which most of them do. IEO's just allow investors to dump their bags easier than ever before and leave noobs holding worthless shitcoins. Only ones who will really benefit from this are exchanges.
You could be right.
These sales are scheduled. They are within the exchanges and only members can participate.
It is like the "chronicle of an announced death".
That is, when we see that the sale of millions of shares occurs in 10 seconds, we can only think that the cake had already been distributed and as you say: only crumbs for the assholes.
Pasando a dejar un granito de apoyo @juanmolina
Welcome, dearest friend @sacra97.
Thanks for comming.
Great blog.....dear @juanmolina one of my best articles very informative thanku 😘🚀🚀🚀
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Thanks dear @alikhans.
Very kinds words.
I agreewith this article. Basically IEO's are new ICO's even though it has started in 2017 the real execution came in this year(2019) only. Buyers are reluctant to grab these IEO's as they did for ICO's in 2017 and 2018. This is self analysis one has to think whether to buy these tokens during initial offers. What happened to these projeccts when bears hit the market. I guess 99.99 percent of the ICO's has came to the minimum of atleast 1/10th of its initial offer.
Thanks for you valuable comment.
I´ll follow you, starting now.
Yes it is a case of once bitten twice shy. A lot of people lost money in ICO's and the valuations went down badly.
So now we all need to be extra cautious.
Thanks for the memo inviting me to read this post. I stand in support of your creative ventures.
You are a very attentive and kind person.
I welcome your comment with great pleasure.
I will start to follow your publications, I see that we have similar interests.
Great post, very informative. First time to hear all this information. I need do some research now😊
Thanks for comment appreciated @kramgelo.
Very informative
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