Initial Exchange Offering and Binance Launchpad. - Crypto Academy / S5W6 - Homework post for nane15.
Good day steemians,
Today's topic is Initial Exchange Offering and Binance Launchpad. Here is my homework presentation based on the questions given
1.) Explain in your own words what an IEO is.
IEO simply means Initial Exchange Offering. It aids upcoming and developing projects to accumulate certain resources to help in the project development with the aim of getting multiple times of the capital when the project reaches completion. IEO has proven it's worth being trusted to aid worthy projects with low resources. Often, blockchain projects are higher demanding of resources to successfully undergo development until completion. Knowing this, upcoming worthy projects which aren’t resourceful get aids from the centralized exchanges in the form of presale by the exchange to support the development of the project.
There are other ways good projects get funded which contributes great support to project development. examples are the ICO and IGO.
Initial Exchange offering is a cryptocurrency auction aiding crypto projects to secure more funds to support the project. Exchanges knowing the nature of crypto currency’s sources crypto projects and offer great support because it can be traded for a higher amount which will earn them more capital. Due to the extreme users exchanges have already establishes the market for new cryptos to be traded with ease.
Investors aid new cryptos that aren’t available yet trading through IEO because initially, the crypto will be of lower value until it’s launched for trading where it will increase considerably when traded could earn them multiple times.
2.) Do you consider IEOs an advantageous way to make an investment? Explain.
I will take a yes to say IEOs are an advantageous way of investing in new projects. Moreover, I say this because IEOs offers investors more room to multiply their capital by investing in the crypto project before it goes live for marketing.
As said IEOs are sort of means of resourcing new crypto or blockchain projects with the aim of getting back multiples of the invested capital when the project goes live. Crypto projects that are aided by IEOs aren’t just any silly project a person decides to embark on but are projects worthy enough of being trusted for any kind of offering to give support.
IEOs which are performed by centralized exchanges being a sincere way of investing in new capable crypto projects, I surely believe it’s a very advantageous way to earn just by giving support.
I also believe it’s a good opportunity for investors to invest in new projects as at the time of investing the crypto will have a quite lesser value until it goes live where price will shoot. Such investments can be made by any with the capital regardless his experience.
3.) List advantages and disadvantages of participating in an IEO.
Here are some advantages and disadvantages of IEOs
| Advantages of IEOs | Disadvantages of IEOs |
|---|---|
| Reachable by all users of the exchange; this feature is available to every user or investor on the exchange regardless your capital or worthiness. | Not reachable by everyone across the world; Because IEOs are performed on exchanges, not every person could gain access to them since some countries are neglected access to some exchanges. |
| High trust; IEO projects are accorded due trust by investors since it’s believed that the exchanges with high integrity have processed these projects and verified their actions legally to curb the risk of scam projects. Exchanges only allow trustworthy projects IEOs. | Volatility risks; due to the volatile nature of cryptocurrencies some cryptos suffers a high depreciation rate such that investors of such tokens tends to loose much of their investment. It could be possible that the token after being launched will suffers the same fate. |
| High success rate; IEO projects usually have a dominating rate of being successful because the exchanges make sure the underlying projects are worth investing. | High cost effectiveness; performing IEOs on exchanges aren’t simple as said and moreover requires resourceful investors. |
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).
IEOs are conducted by centralized exchanges however to explore the active list of IEOs, we visit Coincodex.com. This is a centralized exchange conducting various IEOs. First of all, we need to register an account and proceed to explore the IEO that interests me. Here are some IEOs conducted on the exchange mentioned below. To find the IEOs filter the launchpad.
- Binance
- Kucoin
- Huobi Global
- gate.io
- FTX
Binance
KuCoin
HUOBI Global
Gate.io
FTX
Selecting the HUOBI global exchange for the illustration.
I prefer using the Huobi Global exchange to show the IEOs it conducts. Hence, I will show the procedures involved to creating an account on the HUOBI exchange too.
To know the list of IEOs on the HUOBI exchange, filter launchpad and select HUOBI global. Click as indicated below to filter.
Below shows the list IEOs conducted on the HUOBI exchange. For the purpose of the assignment I will like to explore the MonoX so I tap to continue.
- Here proceed to click visit launchpad. You will be redirected to the HUOBI exchange where you will need to sign up as a new user.
source
- Enter credentials and click sign up. After signing up I recommend getting to app from apps store or the google playstore.
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- login to your account and verify KYC with a valid identification card to proceed.
Screenshot taken from HUOBI global exchange
Proof of my verified HUOBI exchange account.
5.) As an example of a project that had a successful IEO, explain that project. Be on topic. (Use from screenshots.)
Currently this is one of the most successful IEO projects that really rewarded investors very well.
Immutable X is the first Layer-2 for NFTs on Ethereum. NFTs are only as valuable as the security and popularity of the blockchain they are built on, and Immutable X is built to leverage Ethereum’s security and network effects so more people can access world-class NFTs.source
Initially immutable x had an IEO price of $0.16 per coin. This sale period lasted from 7th of September 2021 to November 5 until it went live on the exchange. However now the coin is being traded for $4.62 per coin which proofs a great success of the project.
Immutable X has a 24-hour trading volume of $ 33.79M, market cap of $ 870.57M, and market dominance of 0.04%.
Immutable X reached its highest price on Nov 5, 2021 when it was trading at its all-time high of $ 14.02. The lowest price since it's ATH was $ 3.04. Immutable x really was a good investment project for investors.
Conclusion
IEOs are really for all investors regardless your capital level. Access is granted to all users on the exchange to deliberately invest in good and worthy projects to earn them great rewards. Although some IEO projects do somes bring losses to investors but however it quite a very reliable way to invest in crypto projects. Today I have really learnt a very secure way to invest in crypto projects thanks to professor @nane15 I really appreciate your service as a crypto academy professor.