Crypto startups are back on hype, now with the support of the exchanges — let’s talk about the new model of sales.
At the end of the 15th century, English King Henry VII was in sorrow. There was another war with France, and there was no money in the treasury at all. With this dilemma, the monarch turned to his Chancellor John Morton. He thought for a while and decided to oblige those who spend heavily on banquets, receptions, and other attributes of luxury (after all, it’s logical that they have too much money). And also those who live modestly (they must have saved a lot for a rainy day). This electoral principle went down in history as the “Morton’s fork.” And the common people for not being able to choose the lesser of two evils less aptly called it “iguanas-ranas.”
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The fast-growing hype around Initial Exchange Offering can bring the cryptocurrency market back to the level of January 2018. And this is good news. In addition, investor confidence in projects grows: the times of ICO and the ubiquitous ditching seem to be long gone. But skeptics are in no hurry to invest in the whole stack and warn: IEO may turn out to be the same shit as ICO. Is it so?
What’s the difference between ICO and IEO?
The initial placement of coins is when investors place crypto or fiat on the startup’s wallet, and in return receive its coins on their personal wallets. Then a startup does something beneficial, negotiates a listing with a large exchange, its token grows in price, investors celebrate. But in 90% of cases, everything happens a little differently: startups get money, buy Lambos and leave in the night. Investors were left with useless crypto candy wraps.
The initial exchange offer is when a popular stock exchange makes an audit of a startup and initiates the sales of its tokens to their users. Investors spend their cryptos and get startup tokens on their wallet on the stock exchange in return. Then a startup can do nothing useful and not negotiate a listing with large stock exchange (everything is already under control), and its token is rapidly increasing in price, investors are happy. An audit conducted by the exchange is keeping startupers from Lambos and night-leaving. Investors can earn on the rate of tokens or Hodl.
Is there good examples of IEO?
Binance Exchange, that is a Columbus of IEO, first sold all BitTorrent tokens ($ 7.2 million) in 18 minutes, then sorted out Fetch.AI ($ 6 million) in 22 seconds and finally made a Celer Network cap in 17 minutes ($ 4 million). As a result, the BNB token almost reached its maximum that was at a bull-run peak.
Looking at the flagman, the others started to follow. Very soon, their first IEO will hold Bitmax, Huobi, Bittrex, OKEx, Exmo, Cobinhood, Coinbene, Probit, and KuCoin. It means that we can see in real time how demand and supply grow. Looks like it was a big mistake to assume that STO will replace ICO.
We’re not gonna be ditched anymore?
We’re not sure about it. Even Fetch.AI looks like a too fantastic and sketchy project. And it is possible that at first it was strongly pumped.
Bittrex Exchange fucked up utterly. First, they announced the IEO of the RAID gaming project and on the day of sale, it postponed it indefinitely. The reason is a crypto enthusiast who conducted his own audit and learned that a startup was bullshitting about the strategic partnership with well-known companies.
But this is only the beginning. Imagine what will happen when the exchanges decide that you can hold an IEO every day and earn half a million bucks. What audit you can be done with such conveyor? In addition, don’t forget that the stock exchanges can be deceitful and ditching. What is stopping them from promoting shitcoin projects and hold them IEO right after the listing of Shitcoins?
Therefore, if you don’t want IEO to become the same dogshit as ICO, do some research on every project that interests you. And read Shitcoinoffering. From today, no startup for IEO will pass by our tenacious claws.
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Originally Published: https://shitcoinoffering.com/ieo-mortons-fork-salvation/
IEO: Morton’s fork or salvation? was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.