Initial Exchange Offering and Binance Launchpad. - Crypto Academy / S5W6 - Homework post for @nane15.
Hello all friends
come back with me @aryadwigantara
on this occasion I will try to complete the task given by professor @nane15 regarding Initial Exchange Offering and Binance Launchpad.
So let's take a look at my following review together
Initial Exchange Offering and Binance Launchpad
1.) Explain in your own words what an IEO is.
At the time of the construction of a blockchain project, the founder needed a very large amount of money, so many developers turned to the crypto community, and social media to carry out the development and success of the project. There are several methods that developers use to raise funds, on this occasion I will discuss the Initial Exchange method. Offering (IEO).
Initial Exchange Offering (IEO) is a method of raising funds or raising funds for the development of blockchain projects directly on the cryptocurrency exchange platform. This activity is usually carried out to seek funds that are useful for the development and creation of crypto and blockchain projects. IEOs take advantage of opportunities on the exchange as a means of project promotion.Which is being worked on so as to attract crypto lovers to invest in their projects. The exchange is a great place because there are a lot of investors and traders on the exchange.
IEO is the process of selling new tokens that are not yet on the exchange as well as to raise funds for projects in progress. Crypto traders buy new tokens that are not yet on the exchange and buy on the initial exchange with the aim of buying at a very low price and selling when the price has skyrocketed. When the coin has been launched, the trader gets many times the profit.
The offer made by the IEO is a great opportunity for traders because they buy tokens when the tokens are not yet on the exchange, and after the IEO it is expected that the price of the tokens will soar. IEO's work process is almost the same as ICOs, the only difference in IEO traders can buy tokens directly on the exchange., while ICO traders buy directly from the project developer.
2.) Do you consider IEOs an advantageous way to make an investment? Explain.
Yes, IEO has a good working procedure for investing in new tokens. So I believe IEO will provide great benefits and also provide a sense of security and comfort for users, because IEO works with trusted exchanges. IEO does fundraising on trusted exchanges. Therefore, I see that there is a good opportunity to invest, especially for investors who have minimal knowledge about new tokens or blockchain projects.
Another reason that makes me believe in IEO the process is not detrimental to investors and can provide benefits because investors have the privilege to buy when the price is low and can sell it when the price has soared so that it provides profits for investors. In IEO investors do not invest on the developer, but on a trusted exchange exchange. So investors will not be afraid to lose their assets because it is guaranteed by the exchange exchange.
3.) List advantages and disadvantages of participating in an IEO.
• It reduces Scamming: before the IEO develops a project of the exchange, the exchange first verifies and also checks the project that will enter the exchange seriously without any loopholes. The exchange will protect their good name so that there is no fraud on their exchange, then fraud on the IEO hard to happen because it was previously verified by the exchange.
• Offers a Great Profit Potential: when investors buy tokens during the IEO the token price tends to be cheap. When the project launches the token price will increase rapidly. Therefore, investors who buy tokens at low prices will have big profits when the project launches.
• It increases the Investors Confidence Level: new projects that will be listed on the exchange will be verified first by the exchange, so that it can increase investor confidence when buying new tokens, and investors will have no doubts about fraud.
• Great way of supporting Project: IEO aims to raise funds that are useful for the development of projects being worked on. So with the IEO strategy developers get funding for their projects.
• In IEO not everyone can invest in the project, sometimes requires strict procedures for investors who want to invest in the project.
• Tokens that have launched, sometimes the price does not increase, there may be a decline after launch, so that it can harm investors in a certain period of time.
• The price of a new token through the IEO will attract many investors, sometimes the price will rise and then the price will drop back drastically so that investors suffer losses.
4.) Explain how to participate in an IEO, for the process explore various exchanges, choose one of them and explain the process. (Please use from screenshots.) (No need to participate, just register, present proof of verified account and explain the whole process, do not use Binance)
After knowing the function and understanding of the initial exchange offering, to join the IEO there are things that must be considered, the thing that must be considered is the credibility of the exchange through a project that is being developed with an initial exchange offering strategy. Is conducting an IEO and following the know your customer verification procedure flow, which must be completed prior to trading.
Check tokens that own the project using IEO. Then you buy tokens in order to participate in IEO, if you don't have tokens then you can't participate.
The following is a display of exchanges and tokens that have been IEOs and those that are currently running.
Step by step on how to Participate in IEO
• When you are interested in IEO, first you open the platform https://coincodex.com/ieo-list/ , then you select the desired launchpad, by clicking on all launchpads marked with a green box, on this occasion I use the KuCoin launchpad.
• After the IEO list appears from the launchpad, then select the 1 IEO you want. I use the IEO with the name COTI, by clicking on the desired IEO
• Then a screen appears from the selected IEO, to be able to participate by clicking VISIT LAUNCHPAD.
• After from the previous page, we will be taken to the previously selected launchpad platform. Then register an account on the KuCoin platform.
• On the KuCoin platform you can register using your email or phone number, I used email to register on KuCoin. Then enter your email and click send code.
• then you check the email that you registered on the KuCoin platform, to get the email, verification code shown in the image below.
• After you get the verification code, then return to the registration menu on the KuCoin platform, then follow the registration steps by filling in the password, after filling everything, click the check box in the section I have read and agree to the Terms of Use. Then click register.
• After successful registration, there will be a notification that the registration has been successful, then it will be taken to the main page of the KuCoin launchpad as shown below. On this occasion I was unable to take screenshots of the successful registration notification because the page loading was very fast.
5.) As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
Many projects have succeeded with the IEO strategy. As we know, the token that has succeeded using the IEO strategy is BitTorrent. BTT is Binance. To be able to exchange with BTT there are two tokens that can be used as an exchange, namely BNB and TRX so that the IEO is in two sessions.
BTT allocates its tokens to the TRX and BNB, on TRX there are 35,640,000,000 BTT, and on BNB 23,760,000,000 BTT. Investors are only allowed to buy at a minimum price of 100,000 and a maximum price of 166.666,666 BTT during the IEO presale. At IEO only $0.00012. A total of 7.2M was raised as shown in the green box. BTT sales, use two sessions, namely a private presale session and an IEO session.
6.) Conclusion
Initial Exchange Offering or abbreviated as IEO is a fundraising strategy carried out by developers for new projects that are being developed through the pre-sale of tokens on the exchange. Big profits. The profits that investors get by buying when prices are low and selling at project launches which will cause prices to soar.The risks involved in IEOs are not large because the exchange exchange used by the IEO must first verify the project carefully before entering the exchange exchange. The exchange will guarantee the assets of investors who are on the exchange platform used by investors so that investors will feel safe and comfortable when investing.