Crypto Academy Season 5 Week 6- Initial Exchange Offering and Binance Launchpad - Homework Post for @nane15
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Hey Everyone!
I hope that everyone is enjoying and learning a lot of things on the crypto academy. I had the honor to learn about the Initial exchange offering which is widely referred to as IEO. Professor explained its advantages, disadvantages, participation procedure, and much more that I will also explain in my homework post.
Explain in your own words what an IEO is.
Explain in your own words what an IEO is.
IEO stands for Initial Exchange Offering which is widely common in the crypto industry as developers can easily raise capital for their projects. It is similar to Initial Coin Offering but the only difference is that IEO is offered on crypto exchange platforms and it’s more reliable and secure. The capital is raised by offering digital coins of the project on pre-sale which will be of application after it’s officially launched.
There are a lot of projects whose teams don’t have enough capital to kickstart the development but IEO is the ultimate solution. In that way, a great investment can be arranged which is beneficial for investors and the project team as well because investors get such tokens that has the potential to increase its value in the future while the team gets to work on their project with utmost resources.
The investor also gets to gain huge profit as the tokens are offered at the initial price that is purchased by the exchange’s users. Once the project is launched, those tokens can be traded and sold at a high price as it pumps once it is available at the market. This opportunity is provided on crypto exchange platforms only like Binance, KuCoin, Bittrex, and many others. I have attached an example of Beta finance from Binance in which you can see that a great number of tokens were offered by the team before its launch.
Do you consider IEOs an advantageous way to make an investment? Explain.
Do you consider IEOs an advantageous way to make an investment? Explain.
People used to invest in ICO which turned out to be risky as the scam was getting very common. So, the concept of IEO was launched in which tokens are offered in presale so that they can be sold at reduced prices to investors and arrange funds for development. It is the best option for investors because the tokens can be purchased at the lowest price which becomes bullish after listing on exchange platforms. That makes it a perfect opportunity for the investors to purchase tokens while they are undervalued and sold in a bullish state.
The top-ranked exchange platforms like Binance and KuCoin are secure and the best place to trade in cryptocurrencies. Such platforms only list those tokens that have strong fundamentals and projects are always verified to avoid any issue like a scam as it can affect their popularity throughout the world. So, any token listed on a major exchange can be a good investment but that’s not all, one has to be very careful while putting money on the purchase of a token because not every project is going to be successful as expected. There are plenty of tokens that showed poor performance after their listing while there are some that we're able to pump by 100x.
My answer simply would be yes. I consider it advantageous because it can give a huge return but it depends on the project as well.
List advantages and disadvantages of participating in an IEO.
List advantages and disadvantages of participating in an IEO.
There are several advantages and disadvantages of IEO that everyone should be familiar with before making any investment in tokens offered in IEO. I will explain some of them so that you can also get to know all about the benefits and drawbacks as well.
Advantages
Advantages
1. The first advantage is that coins are always offered at a reasonable price in IEO. The preferred one can be purchased at a low price and sold once it is listed on the exchange as a token becomes bullish after launch. So, it has great potential to give a huge profit.
2. The second benefit is that it is the securest investment. It’s a fact that no exchange platform would like to lose its users and that’s why they deliberately test and verify each project before offering tokens on presale. So, it can be purchased with sheer confidence as there’s a 0% risk of scam.
3. The third advantage is that it is very easy to participate as all it takes is to register on any exchange and all set to purchase tokens at discounted prices.
Disadvantages
Disadvantages
1. There’s no assurance of profit as not all of the tokens’ prices increase after being listed on the exchange. Thus, it can seriously harm the investment and sentiment of the investors as the majority of assets pump and makes a new high and then start a strong bearish trend.
2. Not everyone can participate as some projects offer tokens to a selected audience due to which not everyone gets the chance to invest in their preferred token.
3. People invest with the hope of making a huge profit which is totally wrong. There should be no emotional connection while participating in IEO as the token can still go down from the presale price which can affect the investment and expectations of many.
Explain how to participate in an IEO, for the process explore various exchanges, choose one of them and explain the process. (Please use screenshots.) (No need to participate, just register, present proof of verified account and explain the whole process, do not use Binance)
Explain how to participate in an IEO, for the process explore various exchanges, choose one of them and explain the process. (Please use screenshots.) (No need to participate, just register, present proof of verified account and explain the whole process, do not use Binance)
Participating in IEO is a very easy task and it can be done in various exchanges like Huobi Global, Binance, KuCoin, gate.io, and many others. Each platform offers several different coins on presale and that’s why I will show you the current and already pre-sold coins of the top exchange. I have visited CoinCodex.com to find out about the IEO list of various exchanges. So, have a look at the following sections:
ByBit
ByBit
You can observe from the image that I have attached that ByBit has offered 3 tokens at discounted price and 1 of them is currently available for purchase.
Binance
Binance
Binance is one of the largest exchanges which has offered some of the top tokens like BTT, MBOX, SAND, ATA, and others. The following image represents the latest tokens it has offered on IEO.
FTX
FTX
FTX exchange has offered 3 tokens before their launch in their platform and you can see their ROI as well.
Huobi Global
Huobi Global
Huobi Global is also widely recommended by the investor as it offers several tokens on IEO and you can know about them from the mentioned image.
I have explored the top exchange and learned about the tokens that they have offered to their registered users. Now I will move to the next part of the question in which I have to register on any exchange and show how to participate in IEO. Since I already have an account on KuCoin, I will be showing the process on its website.
1. Open the login page of kucoin.com and enter your credential through one of the available options to participate.
2. After logging in to your profile, you have to click on the Spotlight which is the subsection of More.
3. After clicking on the Spotlight, you will get to see the available tokens on IEO.
4. Now observe the available token on sale and click on it to make the investment. Only CHMB was in progress so it clicked on it.
5. After checking the details about the token and the project, you have to click on Participate Now to make your investment.
6. That’s how you can purchase tokens from KuCoin that are available IEO.
As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
I will be showing you an example of TROY/BNB which was offered by its team on Binance in the BNB session. I will be making use of coinmarketcap.com to share details about the success of this token IEO.
From the attached screenshot, you can see that total of 8% of token supply was offered on public sale to raise the capital.
A total of 800,000,000 TROY was available for sale and the goal was to arrange $4,000,000 which was done seamlessly. The price of a single token was $0.005000 and if we compare it with the present price, then it has incredibly increased as single token values right now at $0.0108.
Conclusion.
Conclusion.
Initial Exchange Offering is a blessing for investors because tokens are bought at cheap rates and sold at pumped prices which can give a huge profit. We have taken an example of TROY and it also showed how much it has helped the investor in gaining profit. Plus, we also observed some of the presold tokens at the top exchange and how we can participate in IEO. Overall, I would like to thank the professor for his teachings as I was able to learn about new investment in crypto landscape.
Thanks For Visiting My Post
Cc: @nane15
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