INITIAL EXCHANGE OFFERING AND BINANCE LAUNCHPAD - CRYPTO ACADEMY / S5W6 - HOMEWORK POST FOR @nane15
Explain in your own words what an IEO is.
Do you consider IEOs an advantageous way to make an investment? Explain.
List advantages and disadvantages of participating in an IEO.
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)
As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
Conclusion.
1. Explain in your own words what an IEO is
In the financial world where cryptocurrency is concerned, there are crypto developers that after creating a coin or token, they need adequate funding (capital) to further that project onto the next level. So in that process of sourcing for funds by these developers, this is where the Initial Exchange Offering (IEO) comes in as an aid to help these developers raise funds and take their newly created token onto the next step in the crypto world.
source The Initial Exchange Offering (IEO) is like an exchange platform or a type of marketplace that a developer will take his newly created token to just to raise funds for it. And how does that happen? The developer makes the coin available for users or investors that want to buy the coin quickly before it touches the open market. This type of buying before an asset hits the open market is called pre-sale in the financial world.
Now there will be a relationship between an exchange platform and an Initial Exchange Offering (IEO) which is built on trust. Before the exchange platform lists a token on their website suggested by an Initial Exchange Offering (IEO), they have to review all the details provided to make sure that the token is not fake and the developer doesn't have any fraudulent intentions. As a user of an exchange platform if is should buy a fake token from that exchange platform, I will never do business with that exchange platform again because they have lost my trust. This is why the IEO and an exchange platform carefully reviews the details of any token before they list them on their website (the open market) for anybody to buy.
2. Do you consider IEOs an advantageous way to make an investment? Explain
Yes, as a matter of fact, Initial Exchange Offerings (IEOs) are obviously what I consider as an advantageous means of investment.
The way Initial Exchange Offerings (IEOs) settle down to verify these tokens is no joke, before they put them out there for investors to take advantage of. And this alone is enough proof for users to throw in an investment scheme.
Speaking of the crypto space alone to be on-topic, there are a lot of methods to invest and so many coins to invest in. Thousands of users every day invest in cryptocurrencies and crypto-related assets and they all know the risks that come with it but investing in tokens or participating in pre-sales in an Initial Exchange Offering (IEO) platform is less risky than other investments in the crypto space.
It's surreal as an investor when you realize the token you just bought will be listed in the open market for buying and selling. When that happens there might be a spike/rise in the price of that particular token, then the investor can choose to take his capital and profits by selling the token. This is a really advantageous investment method.
3. List advantages and disadvantages of participating in an IEO
I think everything that has an advantage should always have a disadvantage for balance, and for an advantageous platform (IEO) that helps developers raise funds, it sure does have its disadvantages as well which I will be listing below;
| Advantages | Disadvantages |
|---|---|
| Investors feel secure and confident knowing that the token they bought on pre-sale was offered for buy to them by a trusted exchange platform. | Developers will have to pay a fee (like a commission) in an agreed percentage from the funds raised for that token to the IEO platform before the token can be listed for buying and selling in an open market. |
| Support development and advertisement amongst other things are what IEOs provide so that a token can function freely and smoothly. | Sometimes after a token is listed in an open market, it pumps up or rises in value so much then it falls drastically all of a sudden and this is risky to both developers and investors of that token. |
| IEO platforms are well developed to be user-friendly with a smoothly designed user interface (UI) for users to enjoy. | Lack of anonymity for users that participate in an IEO platform because these users are required to provide their personal information to signup before they are granted full access and privileges to use the platform. |
4. 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)
The first thing to do before participating in an IEO is to carry out proper research on active and legit IEO exchange platforms since in the modern world it is easier to find out about anything on the internet. Running proper research before participation is for your own safety and the safety of your funds too as an investor. Security is really essential because as you patriciate, you are legit giving away your personal information to these exchange platforms. Information if not well secured and protected online can be subjected to cyber-attacks.
After running your own personal research and picking a particular IEO by agreeing with their conditions which you find suitable to you for participation, now you will have to register on the exchange platform by opening an account and having your KYC (Know Your Customer) reviewed and verified before you are able to participate in any IEO.
Now with your account and credited funds in it, as an investor you are able to participate in buying tokens that are out on pre-sale on the IEO exchange platform you chose to work with.
Below, I am going to explore some exchanges on coincodex.com website that is in charge of making sure that an IEO token is legit before listing it out on their platforms.
On the coincodex.com page, click on All Launchpads to see the list of exchange platforms, on the All Launchpads drop-down menu, these exchange platforms are listed in ranking order;
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While exploring these exchanges, please note the following:
IEO NAME- Shows the name of the IEO project.CURRENT STAGE- Tells of the status of the project, whether it is ongoing or has ended.LAUNCHPAD- Informs us of the exchange platform in charge of the project.START DATE- Date the project started.END DATE- Date the protect ended.ROI (USD)- Displays the return of investment in USD.
- OKEx IEO List;
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- FinexBox IEO List;
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- Zloadr IEO List;
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- BitBay IEO List;
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- Shortex IEO List;
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- BitexLive IEO List;
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Below are the steps to register and participate in an IEO project. In this explanation, I will be using the APENFT token on Huobi Global IEO List. So stay with me as I show how to participate with screenshots;
- Step One: Click on APENFT on this page:
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- Step Two: On this next page, click on VISIT LAUNCHPAD:
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Step Three:
You will be redirected to huobi.com page...On this page, to proceed you will be required to open an account with your email address and other personal details:
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- Step Four: After typing in your registration information, click on Sign Up:
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- Step Five: Tick the
I'm not a robotbox to confirm that you are human:
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- Step Six: Go to your email inbox and check the code that was sent to you, then come back to this page to input that code:
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- Step Seven: Congratulations, your new account has been successfully created:
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5. As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
Chumbi Valley (CHMB) is an example of a successful IEO project that was listed on the KuCoin exchange. Chumbi Valley is an interesting game on the Play-to-Earn blockchain that was developed on the Polygon and Binance Smart Chain (BSC) network.
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This project took off on the 14th of December on KuCoin and ended on the 17th of December, 2021. It had an initial price of $0.001 before launching on KuCoin on the 17th of December which was 5 days ago. Currently, this project is in its buying and selling stage right now (i.e trading stage) at a price of $0.064719.
On the screenshot below, is a live price chart of Chumbi Valley;
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| Data | Value |
|---|---|
| IEO Name | Chumbi Valley |
| Token | CHMB |
| Launchpad | KuCoin |
| Start Date | Dec 14, 2021 |
| End Date | Dec 17, 2021 |
| Current Stage | Trading |
| Initial Price (USD) | $0.001 |
| Current Price (USD) | $0.064719 |
| ROI | 65.45x USD |
6. Conclusion
I understand that with the invention of IEOs, projects with genuine potentials are made available to investors for pre-sale. Although an investor needs to do more research and findings on a project before investing in them.
When you have a trusted exchange platform like KuCoin or Binance, Investing is made easier as long as you have funds to exchange for the IEO token. These platforms are well recognized for their user-friendly interfaces.
Remember that any form of investment at all entails risks, and no risk means no reward. Also, as you invest in any IEO project beware that it can pump and it can also dump. Dumping or falling drastically in value or in price means bad business, and bad business is that risk an investor needs to prepare for before investing.
A user is no longer anonymous as soon as he registers to participate in an IEO project because the exchange platform he chooses to participate in will require his personal information and this information can be used by these exchange platforms for various things that might include personalized ads and spam emails.
This is my submission post for the homework given by Professor @nane15 on the topic Initial Exchange Offering and Binance Launchpad which I read and understood a lot. Thank You Professor @nane15 and SteemitCryptoAcademy for this opportunity.
ALL SCREENSHOTS WERE CAPTURED BY ME.