The crypto world changes at a mile a minute.
After 80 per cent (probably more) ICOs failed, the industry knew there had to be a better way to help viable projects succeed. Exchanges expose new projects to millions of investors instantly making the IEO a perfect partnership for mutual blockchain success. According to data from CoinSchedule.com, close to $180 million had been raised through IEOs in 23 offerings in the first quarter of 2019.
IEOs have huge potential from a growth perspective. Bill Shihara, CEO of US-based exchange Bittrex believes that IEOs have the potential “to be larger than the ICOs of 2017.” IEOs have essentially fully replaced last years trend of Initial Coin Offerings, ICOs as a form of crowdfunding for projects. Bittrex, a leader in the industry, fully vets and supports projects through the IEO process. Alterdice, another reliable asset exchange, has announced their support of projects looking to crowdfund.
Let’s explore some IEO Advantages
Credibility
Exchanges are putting their reputations at risk listing IEOs. Since they are instantly sold on the exchange only to their customers, exchanges must complete extensive due diligence to ensure they are not left promoting a token positioned to fail.
Real Business Cases
Companies presenting their tokens on exchanges must show a true business case for their project’s long term success in the global marketplace not relying solely on the success or failure of secondary trading.
Exchange Liquidity
Exchange listings were a huge barrier to traditional ICOs which led to major sell offs from airdrops and long liquidity events for investors. IEOs remove this barrier which has shown to positively impact token price.
Strong Companies Thrive
IEOs, when designed by exchanges to benefit growing companies, save companies a great cost on fundraising helping them spend more on development and meeting user expectations with their products. Bittrex is a great example of an IEO launchpad with a structure that benefits companies long-term success.
Examples of IEOs
Credibility
Justin Sun purchased BitTorrent for $140M in 2018. BitTorrent was founded in 2004.
Real Business Cases
170 million users of its products at the time of IEO
Initial Sale Offer
BitTorrent was one of the first IEOs back in November 2018. The IEO sold out in around 15 minutes.
Platform
Binance
Currencies
The sale hosted two sessions allowing purchases in TRX, BNB
Fundraising Analysis
In the two simultaneous sessions, BTT raised $7.2M.
The initial price for BTT was $0.00012. From an IEO price of $0.00012, BTT hit the all-time high of $0.001861 providing investors 1,450% gain within a month of its IEO.
Standard Tokenization Protocol (STP)
Credibility
Two private rounds raising $7,000,000 from firms such as Coinbase Capital
Real Business Cases
Open-source, decentralized standard for the tokenization and issuance of any asset
Initial Sale Offer
Raised $750,000 in 8 seconds
Platform
Bittrex
Currencies
Bitcoin
Price Analysis
IEO price was $0.01 so based on today’s trading returns are 2.56x BTC
Summary
XR Web is a platform that allows you to interact with geo-specific augmented reality applications. As Bankless Times has explored in the past, there are many ways augmented reality will affect the future of business. Users can interact with these apps securely, lease out sections of land to apps and earn passive income from these apps (staking) or earn and spend loyalty points across applications as they use them.
Credibility
Team includes industry leaders such as Hap Klopp, Ex-CEO of The North Face; Manindra Majumdar, MBA with Accelerator experience; James Sholtz, former Samsung engineer; and Kyle White, leadership for $16B in market cap.
Real Business Cases
Relationships with Intel, Google Developers Launchpad, FbStart, Snap Accelerate, Microsoft BizSpark and the Nvidia Inception program through various incubators and startup accelerators and are gearing up for the big time. XR Web is launching an ambitious platform, in a massively growing industry that is on the cusp of hitting mainstream.
Initial Sale Offer
Hard cap for round 1 $112,500
Start Date/Time – July 9
End Date/Time – July 12
Platform
Alterdice
Currencies
ETH
Fundraising Analysis
IEO price for Round 1: USD 0.075 (Original ICO token price USD 0.15)
200% gain compared to the market value
Conclusion
IEOs combine exchange token listing strength with the great ideas of the bankless future. Do your own due diligence and support projects you believe in.
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