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Swarm Intelligence Set

ICO and IEO Blowing up


24 Jun 2019   #Ethereum

ICO and IEO Blowing up in Favorable Crypto Market Conditions


The crypto markets continue to see recovery, with prices being nearly halfway towards their all-time high. This is particularly noticeable when it comes to Bitcoin (BTC), which is only around $300 away from hitting the $10k mark. Meanwhile, altcoins are not that far behind, and the surging prices once again made token sales extremely popular and profitable.

The IEO (Initial Exchange Offering) token sale model is blowing up, currently being one of the most popular ways of bringing and obtaining new altcoins. However, ICOs (Initial Exchange Offerings), previously believed to be extinct due to 2018 bear market, are growing just as much.

ICO vs. IEO


When it comes to IEOs, these are token sales that are held on crypto exchanges, as the name suggests. As such, they are typically considered to be a safer investment, as the exchanges are the ones responsible for making sure that the project is not weak or a scam. When it comes to the ICO token sale model, the investors themselves were responsible for this, which is why scams flourished in 2017 and 2018.

IEOs were originally introduced by Binance earlier this year, when its launching platform, Binance Launchpad, started holding token sales for different coins. The first one to see launch was TRON's BitTorrent (BTT) token, which was one of the most successful token sales in history.

Soon enough, countless other exchanges followed by creating their own platforms. The IEO model brings a number of benefits to everyone involved. The exchanges get new customers, they are the first ones to list the new tokens, and they attract additional attention. The projects get to relax and work on perfecting their product without having to worry about marketing, exposure, and alike — all of which is handled by the exchanges. As for customers, they get a confirmation that the project is legitimate and safe for investing.

With all of that in mind, it is really not that surprising that IEOs are successful. However, the return of the ICO model is something that not a lot of people expected to see.

The ICO comeback


As mentioned, ICOs were considered extinct until early 2019. They exploded in 2017, with hundreds, and even thousands of coins emerging all over the world. There was no lack of scams, and everyone tried to launch any type of coin, just to exploit the trend and get some money without having to work for it. Most of such projects had failed, and scammers took off with quite a lot of money.

When the bear market hit in 2018, it came at the same time when the regulators cracked down on ICOs. They accused most of the tokens of being securities, which meant legal issues for investors and projects alike. The ICO model quickly got abandoned, and many believed to be the end of it.

In the meantime, STOs (Security Token Offerings) emerged as a replacement, briefly becoming a popular trend. However, they were replaced by IEOs before they could really take off. You can imagine the surprise within the entire crypto space when ICOs re-emerged, and are now shoulder to shoulder with IEOs. Of course, both models have their own flaws and advantages, which is likely why both are still popular. With that in mind, it is likely that one of them is going to slowly disappear in the future, and chances are that it will be the ICO, simply due to security concerns.

Most expect it to happen during the next bear market, although nothing is ever certain with the crypto space, and ICOs might go away for the last time at any moment.

Author: Ali Raza for Crypto-Rating.com

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