Currently, IEO is very popular. Binance Launchpad has conducted the sale of 8 IEOs, the most recent being the Perlin (PERL) project. Previously, the projects were x5, x7 compared to the purchase price, but the PERL project was only x2. But that shows quite high return on IEO investment. So let’s find out what is an IEO? And how is it different from ICO?
What is IEO?
IEO (Initial Exchange Offering), which means a project is listed directly on an exchange without going through an ICO (call for capital). This leads to the fact that you are not afraid of the project being sprayed because it cannot reach the floor. So IEO can be a pretty good investment channel. However, after IEOs, the profit also decreased a lot, because there were too many participants.
Advantages of IEO
Because it is “appraisal” by the listed exchange before it is listed, you can buy with complete peace of mind. And especially, the projects that are open for sale have increased quite high (maybe due to the self-lifting floor, due to Fomo…) but in general, the profit is large.
What are the disadvantages of IEOs?
The disadvantage of IEO is that it will be easily manipulated by the holder of a large number of tokens.
And many IEO projects, all tokens are held by a group of people, IEO is a way for this group to freely change the price as well as change the market, because they hold too many tokens, while opening the IEO sale. only 3-5% of their tokens.
Especially buying IEOs with Binance Coin, there may be fluctuations in the price of BNB if bought at a high level.
What is ICO?
ICO (Initial Coin Offering) – this is how to raise capital through calling for investment. ICO projects have not been listed on the exchange, so it is risky because if you buy a spray ICO project, the token will not be listed on the exchange. That means you have to thoroughly research the project before buying because it is always risky. However, there are also many reputable ICO projects, most notably Tezos, which raised ~200 million USD.
IEOs are trending in 2019 and will definitely replace ICOs.