What is IEO? A Complete Guide to IEO Investments

By Le Thanh | ICO, IEO & STO

What is IEO?

67.91% is the average rate of losses of ICO projects launched in 2018.

This is enough for you to find that the form of ICO investment is not very attractive, at least this year.

It is not difficult for us to predict that ICOs are far from being able to return to the prosperous period like the previous years.

Most ICO investors so far "Infused" when continuously losing money. And it seems that everyone is expecting a new trend that can help them quickly "Back to shore".

ICO-insights

Fortunately, with the return of Binance LaunchPad, in just 1-2 months, we have seen the rafters X5 - X10.

What it has been so long since the Crypto brothers and sisters have not dared to think about, once again appears with more frequency.

The success of Binance LaunchPad seems to have attracted the attention of outside cash flows. When The market is showing signs of new players. Along with these new cash flow to be added to this market.

IEO - a new type of investment model with the support of the exchange under the success of Binance LaunchPad, is widely believed to become a new trend in 2019.

Binance-LaunchPad

So what is IEO? Should I invest in IEO? How to take advantage of this craze to make a profit before the crowd jumps in?

In this article, I will share some research and analysis on IEO investment that I and the Coin98 research team have done in the past.

And now….

What are you waiting for! We will start with the first main content of today's article: What is IEO?

What is IEO?

IEO stands for phrase Initial Exchange Offering, a form of crowdfunding calling through token offering on Crypto exchanges.

If with an ICO, you will buy tokens directly from the project. With IEO, the token will be sold on an exchange and siblings who want to invest can go there to buy it.

Theoretically, tokens are offered for sale according to the IEO method on floor A may or may not be list to the floor A after the sale is complete.

However, in most cases that I observe, the token sold IEO on which floor will usually be listed there.

That is also why these projects are sold on IEO Binance LaunchPad are very expected.

Simply because everyone expects that every coin listed on Binance will "Pump".

Differences between IEO and ICO

The difference between IEO and ICO

The only difference of IEO compared to the form of ICO is in the appearance of a third party intermediary - the exchanges.

With the ICO model, you will have to work directly with the owners of those projects. Means the whole process KYC / AML and buy tokens will not have intermediaries that deal directly with the project.

As for IEO, instead of working directly with the project, exchanges will stand out as intermediaries for both parties: investors and projects.

To participate in buying IEO tokens, you will need to open a trading account on that floor. Complete the KYC / AML verification steps, prepare the BTC / ETH / USDT inside the account and wait until the opening day to buy.

In some cases, exchanges will apply the method of using token floor to participate in buying IEO.

This is a new method that has been adopted by many exchanges recently to increase the demand for their token use.

This method has many interesting points that I will share in a little later.

In order to help you understand the IEO model, I have summarized the simple process of buying IEO as shown in the following table:
steps-to-invest-IEO

It can be seen that the biggest difference of IEO is that you have to buy indirectly through the trading floor.

So what are the advantages of this token buying method that many people are interested in?

Advantages of IEO over ICO

advantages of IEO-versus-ICO
Safety and focus for investors.

As analyzed above, with IEO, the exchange becomes an intermediary to support the trading of tokens between investors and projects.

This is unprecedented for the Crypto market.

However, for traditional financial markets such as stocks, this is very normal.

Exchanges - as an intermediary, will stand out as the organization, control and selection of potential projects for investors.

On the investor side, you also feel more secure when there are a number of projects proposed by the floor. Instead of having to research for yourself, it takes a lot of time and effort.

Increasing the number of new users with a large volume of exchanges.

When implementing IEO, exchanges will attract a large number of users.

This is seen as a form of marketing to help save costs but is also a double-edged sword.

If IEO is successful, the project will bring profits to investors. Besides, the exchange increased the reputation and revenue from trading activities of users.

However, if the IEO fails, the reputation of the floor will also be affected.

In the context of the fierce competition and constantly offering attractive programs. At this point, users will switch to using exchanges that are more beneficial to them.

It is this competitive element that will make exchanges much more serious in the process of reviewing potential projects with high potential for success.

Reduce costs for token offering, marketing costs for projects.

On the side of project owners, siblings have a new capital mobilization model, much more focused than the ICO.

As a project, most of the team members are usually programmers. Very few people in the team have knowledge of Marketing. Especially specific activities such as token offering.

When the IEO organization is successful, projects save a lot of money for marketing. At the same time, you also save the cost of listing on the exchanges and see as well as more new investors, more confident in the project.

reduce-cost-marketing-for-projects

It can be seen that IEO is a very good model because it can support many investors.

It is logical that many siblings think that IEO will become a trend of investing in cryptocurrencies in 2019.

But IEO is unlikely to become as popular as ICO !!!

The number of current IEO projects is still extremely small. The main reason is the choice of exchanges.

Exchanges themselves when implementing IEO, they also bear a lot of potential risks in parallel with our investment.

What if the IEO is not successful, not profitable for investors?

At this time, the exchange will lose a lot of prestige.

Or if the IEO does not raise enough capital for the project, the exchange is also the party that suffers loss.

IEO-2017-2018 projects-about-short-term-and-long-term

60% (3 out of 5) projects had IEO in 2017 and 2018 were losses both short term and long term.

In particular, both profitable IEO projects, Gifto and Bread, suffered losses in the long term.

That shows that IEO still exists many risks.

Therefore, when participating in this IEO game, risk management is still very important to help us protect our assets.

Risks when investing in IEO

investment-risk-IEO

IEO is an investment model, it is not perfect and there are many risks for the parties involved.

For your convenience, I will classify risks according to each group as follows:

Risks to investors

As you can see in the above data sheet: all 5 IEO projects in 2017 and 2018 have suffered losses to date from the IEO implementation project.

The future is hard to tell. But based on historical data, IEO is not suitable for long-term investment because the longer HODL is, the higher the likelihood of losses.

This is also quite understandable from a development perspective of projects. IEO can be considered a transitional period.

In addition to helping projects raise more funds from the community, IEO will support projects that have tokenized directly on the exchanges.

If after the token is listed on the exchange, the project is still not finished with the product, does not attract more users and new buyers of tokens on the exchange, the possibility of dump prices in the long term is very large.

IEO activity is also concentrated on exchanges. Therefore, you need to be very careful in choosing the platforms that will implement IEO.

Of course, IEO on large and reputable exchanges is still safer than newly implemented IEO.

Risks to the project

IEO can be an effective capital raising tool, a good leverage on brand.

However...

When participating in IEO, projects will sometimes have to pay a high price ... The right to "partially control" the project!

Implementing IEO means that an exchange can decide on your token price. The exchange can also decide when the token is listed, or even control the token price of the project.

Besides, the IEO directly on the exchange will make the power focused on the exchanges.

With this power, it is certain that the price paid by the floor from projects will not be small.

If IEO fails, it is inevitable that the project will face many difficult problems related to financial issues.

Risks for exchanges

On the floor side, risks often come from the projects themselves.

If the scam project fails, the IEO will not only damage the investor, but the exchanges will also lose their reputation in the market.

Exchanges should be careful to select an IEO-implementing project. That's why there are very few IEO projects since 2017.

Which IEO investors should choose?

First, before getting into the IEO investment strategies, let's find out "How many brokers are currently doing IEO. And is Binance LaunchPad the first to adopt IEO?"

For your convenience, let's take a look at the summary of IEO's established and experienced brokers below.

aggregation of all-in-one-and-doing-IEOs

Statistics show that IEO is not a recent trend that has started since 2017.

The origin of this movement is no one else is Binance with the launch of Binance LaunchPad.

However, after the success of the first two IEO projects, Bread (BRD) and Gifto (GTO). People still do not understand why Binance decided to discontinue this LaunchPad program until recently launched again.

Follow the trend line of Binance LaunchPad. In 2018, there were also many projects calling for capital in the form of IEO in other exchanges such as Tokenman, CoinSuper or CoinBene but did not bring as much buzz as Binance.

Why is it only when Binance Launchpad makes IEO so popular?
  • Reason # 1: High liquidity
  • Reason # 2: Prestigious brand
  • Reason # 3: The coins listed on Binance are usually okay "Pump"
BitMax LaunchPad & Huobi Prime: Names are expected to succeed after Binance LaunchPad

Difference of IEO on BitMax, they lock 50% of the token and pay only 50% of the remaining tokens after the sale.

While Binance will release all of it. The lock token will prevent the price of tokens made IEO on BitMax from falling too much compared to paying 100%.

However, no IEO has been completed on BitMax yet, so it is not clear how this will work.

Huobi Prime Platform (HT) There are no specific plans yet for which projects will be available for IEO and the sale period. But it is likely that Huobi will learn Binance and BitMax to use the exchange's native token HT as one of the currencies to join IEO.

As the two exchanges, BitMax and Huobi have some advantages when they can learn and take advantage of the successful way of Binance LaunchPad from before.

BitMax and Huobi themselves have their own tokens. If they succeed with this IEO strategy, it is highly likely that HOLDers holding tokens of these two exchanges will also benefit indirectly from the token price increase.

However, whether they can take advantage of this advantage to attract attention and succeed with IEO projects on their platform or not remains an unanswered question.

In just a little while more, we will have the answer.

Group the remaining floors

The other group is the ones that have IEO from the second half of 2018 to now.

We see the common characteristics of these floors as follows:

  • Most tokens are only partially sold on the exchange, the rest are still sold through ICOs as usual.
    The ANKR project is a typical one.
  • Use less coins / tokens of the exchange to buy but often use BTC, ETH, USDT.
    For example: Coinbene, Coinsuper, Liquid.

This may be because the exchange has no native token or because the community uses that floor so little of the token / coin holders.

Especially, Tokenman only sells ANKR through KRW and only for Koreans.

Overall, after the success of Binance LaunchPad, a series of other Crypto exchanges have learned and built their own IEO program on their platform.

Now each floor after learning is further customized according to their own strategies. Therefore, there is still no consensus on buying IEO among exchanges.

have been IEO-from-the-end-2018-to-date
Which criteria to choose an IEO?

From the statistical results in Table 1.x, we can see that not all floors make IEO will be "delicious".

Therefore, choosing a floor to invest in IEO is also very important.

Here it is 4 criteria which you can use to choose good IEO platforms for you:

Criterion # 1: Prestige floor.

The first priority when you choose an exchange to buy IEO is to choose high reputable ones. Because reputation comes with a level of security for investors.

The floor itself is the party that organized the IEO. Exchanges will not want to risk their long-term reputation in the market.

Therefore, they will select and carefully check projects before allowing projects to implement IEO.

Criterion # 2: The floor has a supportive community and a large number of users, with a very high transaction volume (real volume).

In order for you to check whether the trading floor has a real or virtual volume, you can refer to that data fairly accurately from the page. https://www.blockchaintransparency.org/

You will be surprised to find that the number of volumes you are viewing on CoinGecko is good CoinMarketCap Daily will include lots of fake volumes. The actual real volume number is completely different.

Importantly, you will realize that there are not many exchanges with real trading volumes on the market.

Therefore we will need to be careful with virtual volume floors.

Advice for you: It is best not to buy IEO on these floors because the possibility of manipulating the price is very high.

Criterion # 3: The floor selects good projects.

The final goal of buying IEO is that you invest in the project promoted by the exchange.

Therefore, how the floor chooses a project will greatly affect our investment results.

Choosing a good project will make the IEO's chances of success of the exchange and its own project higher in both short and long term.

IEO is just the initial launch pad. Long-term success or not still depends on the internal resources and application of that project.

The criteria for selecting good projects to do IEO are basically not much different from project selection for purchasing ICOs.

Coin98 also has a shared article about how to choose a good ICO project.

You can refer here: What is an ICO? A Comprehensive Guide to ICO Investment from AZ

Criterion # 4 (Bonus): Coin exchanges have well designed Tokenomics

Why is that?

Almost all exchanges also issue their own tokens. Binance has BNB, Huobi has HT, BitMax has BTMX ... And in IEO the exchanges will use their tokens as an option to buy IEO.

For those who cannot buy IEO will tend to discharge floor tokens. This caused the price of the floor token to fall.

The most obvious example is the BNB price down 17% after the last BTT sale (see graph BNB price below).

Pay special attention to exchanges with tokens in the form of Transaction Mining. These types of floors, the more you should consider before participating.

In addition to the floor selection criteria to join IEO. You should also take time to find out and make judgments about the projects you want to invest in.

List of exchanges that should join IEO
  • Reputation: Binance

  • Consider 50/50: BitMax, Huobi Prime Platform

  • Should not participate: The bottom floor remains

Experience from the projects has completed IEO

drawn-from-IEO-project-experience

This is a share of the views and ways that the Coin98 team is applying to invest in IEO. Despite careful research on possible cases. However...

This share is still only for the purpose of sharing experiences, not as advice or investment decisions.

Analyze price graphs of recent IEO projects

Before going into the IEO investment strategy, let's review the price chart of the recent prominent IEO projects.

chart-IEO
IEO-Project-Diagram

The common point of these two projects is that right from the beginning of the exchange, the price has x times compared to the price of IEO release. Beginning on the floor the price dropped a bit and then increased sharply to reach the highest peak of All-Time High (ATH Price).

While BTT takes 7 days to reach ATH peak, FET only takes 3 days. Immediately after that, the price turned around and created a huge dump, causing the price to drop from 33 to 40% in just 5 - 7 days.

Looking back at history, Binance's two previous Launchpad projects, Bread (BRD) and Gifto (GTO), took 2-2 weeks to reach ATH. Soon the price also dropped by 3-40% after about 50 weeks.

ATH-price-of-projects-IEO-on-floor-Binance
ATH-of-the-project-IEO-on-floor-Binance-2

In addition, the ATH peak price of IEO projects on Binance is increasingly higher. Accompanied by the rate of price increase and depreciation of these projects is also much faster than before.

With the current FOMO nature, after the FET sale, it is likely that the following projects of Binance LaunchPad will peak very quickly. Soon after, the pace of price reduction was even faster.

Should long-term HODL coins be sold IEO?

This is probably a question many people are concerned about.

To answer this question, let's take a look at a list of 8 IEO projects recently:

8-projects-IEO-lists

5 out of 8 projects are priced lower at the time of issuing IEO.

All of these projects have been calling for quite a long time, from 2017 to the third quarter of 3.

3 projects that are profitable are 3 projects that have just ended IEO in the short term. Therefore, there is no sign that these currencies will continue to be profitable in the long term.

From the results of the analysis above we can see: most IEO projects achieve positive results in the short term but lose money in the long term.

Therefore, anyone who joins Binance's IEO or other reputable exchanges should consider Cash Out as soon as possible. Absolutely there should be no thoughts going HODL TO DIE.

IEO Investment Experience # 1: Only FLIP should be.
Buy IEO should only make a profit in the short term, not hodl.
How many times are IEO projects x at the highest price of ATH since the IEO release price?
How many times-IEO-projects

When I came to this statistics table, I was really surprised about the data received.

Up to 3 projects have the highest price (ATH Price) lower after going on the floor and even lower than the time of the IEO release.

Meanwhile, looking at the profits at the top of Binance's 4 projects, this is really an impressive number.

Based on this ATH ROI, we can estimate it profit margin at the top of Binance Launchpad projects from 3x ~ 5x.

The cause may be due to:

  • The community put a lot of faith in the big and influential exchange like Binance. The ATH peaks of IEO Binance are usually reached in 1-2 weeks. Particularly, the nearest project is Fetch.AI only takes 3 days to reach the highest peak.
  • The remaining floors apart from the unequal position, the way of the floor or the IEO project itself is not attractive to investors.
IEO Investment Experience # 2: Only play Binance. Take profit at 3X - 5X. The remaining exchanges are not a safe option to ensure good returns.

Statistics of recent IEO project profits

If you spend $ 1,000 to invest in each of the above IEO projects, what is the total ROI now?

  • Total Investment: $ 8,000 ($ 1,000 / each)
  • Current Balance: $ 13,394.5
  • Profit / Loss: + $ 3,594.5
  • ROI: + 44.93%
  • Biggest Gainer: Mountain bike
  • Biggest Loser: TEMCO

As you can see above, even with 8 IEO projects on the floor (5 to eat and 3 to lose). At a reasonable rate of capital allocation, we are still profitable overall.

From here shows capital allocation In investing IEO is very important.

IEO Investment Experience # 3: Always invest in IEO with less than 10% -30% of available capital. The larger this number corresponds to the higher the level of risk to pursue high profits. Conversely, the lower the capital allocation, which is appropriate for those who choose a safe option.
Does the IEO trend continue for long?
trends-IEO-materials-exist-long-lasting

The success of IEO projects through Binance Launchpad can be one of the factors that help the market warm up with many results that come with it:

The market began to appear a new group of players.

This group may be people with idle money, who want to earn passive income, but have not known before Cryptocurrency there Bitcoin what.

This new group of players knows about IEO through friends or the press. Then gradually became interested and interested in investing by the attraction, the huge profits they "heard".

New cash flow into the market.

This money from new investors, new investment funds that previously focused only on the traditional market began to care and capital flows to cryptocurrencies.

The insiders began to become optimistic.

They are the ones who went through a flourishing period until the downturn of ICOs.

From a state of depression, bitterness because the market plunged and went sideways for a long time. They turn to optimism and expect this recovery with IEO.

The IEO movement is likely to be responded and developed quickly by the community.

It will even be FOMO more than an ICO. This will draw the attention of many new players jumping into the market.

However, in an upward trend, there will always be crooks who take advantage of opportunities to cheat people who do not have much knowledge. So always learn and stay alert.

Floor tokens become an investment channel that many people are interested in.

With the increase in price of BNB and BTMX are 2 tokens of Binance and BitMax. The IEO movement promises to bring a lot of excitement to investors who want to invest in tokens of these exchanges to make a profit.

Following Binance Launchpad, other exchanges will "catch the trend" very quickly and become a new trend.

Next can be BitMax, Huobi, Bibox, Kucoin, ..

IEO projects will gradually be forgotten.

Anything that "grows soon" is "over." Maybe in 3-6 months, the community will mention IEO everywhere, any good project, which floor IEO, ... but then people have Can forget it very quickly.

The most obvious is probably the case of BTT or FET.

Although very HOT at the time of IEO but until now, many people have taken profits and switched to other projects. These projects began to be forgotten and rarely mentioned.

Safe and effective IEO investment strategy

In IEO, there are 2 ways for you to invest

  • Option 1: Invest in token of the exchange.
  • Option 2: Invest directly in IEO projects.

The following is the strategy that Coin98 applies to each specific case as follows:

Option 1: Invest in tokens of open exchanges selling IEO

I will divide 1 campaign IEO into 2 stages for you to easily imagine.

IEO-phase-1

Stage XNXX: Start announcing sale of IEO to the time of official sale

The use of their own tokens / coins to raise funds increases the buying demand. This is the factor causing their price to skyrocket.

For example: BNB increased 15.6% from the date Binance announced the sale of BTT via Binance Launchpad.

IEO-phase-2

BNB increases to 76.5% from the date Binance announced it would only sell FETs with BNB.

Binance-Launchpad-IEO

BNB set a new peak of 15.6 BNB / USDT after Binance announced the CELR project will be supported by Binance Launchpad.

exchanges, IEO

Stage XNXX: As soon as the exchange completed the sale of IEO

During this period, the price of tokens / coin floor tended to decrease. There are even cases where there is a sharp decrease.

The reason for this is that a large number of token collectors with the purpose of buying IEO, but failing to buy, start to "dump".

campaign-sell-BTT-on-Binance-Launchpad

BNB price plummeted right after the BTT sale campaign on Binance Launchpad ended.

Coin98's strategy:

  • Buy and HODL token floor since the floor has announced to be IEO.

  • Sell ​​before the time of selling IEO of the exchange. At this time, even a few words still sell.

  • Only apply this strategy to BNB and BTMX.

  • The investment capital must never exceed 30% of the existing capital.

Option 2: Invest in tokens of projects calling for capital with IEO

Those who invest in IEO tokens can be divided into the following two groups:

  • Group 1: The buyer gets the IEO token upon release
  • Group 2: People who buy an IEO token after it is distributed.

Group 1: If you are one of those in group 1, congratulations.

You can be considered luckier than tens of thousands of people who want to own an IEO token in the first place. Shortly after Binance's 2 IEO projects had just finished Lauchpad, people immediately mentioned Blackmarket black market.

Blackmarket-IEO

It's been a long time since I had the chance to see the black market so exciting again. Recently, after the end of Binance's FET selling session, the black market offered at x2, x2.5 times.

For those who have sold all their FET in the black market, it would be very regretful. Because right after being on the floor, the price of FET reached $ 0.47, which is nearly x5.5 compared to the selling price.

At the time of writing, the price has fallen by 35% from the peak of ATH.

Strategy of Coin98 if falling into group 1:

  • Sell ​​a portion on the black market when hitting breakeven or less to minimize risk first.

  • Then when going to the market, observe the market and choose a suitable selling point. Based on the price chart of Binance's 2 most recent launchpad campaigns, the timing is The best discharge is from 3-5 days after the token goes public.

  • For some of you who want to take more risks to make more money, you can wait on the floor and sell. However, pay attention to the time it takes to sell as stated above.

  • The investment capital must never exceed 30% of the existing capital.

Group 2: People in group 2 may be slower than group 1. But this group still has the opportunity to profit from IEO by buying tokens after the campaign ends.

Of course this way of doing will Much more risky.

Strategy of Coin98 if falling into group 2:

Wait for the next IEO….

For some of you who take risks, you can refer to the following options:

  • Buy at the black market, then sell on the floor to profit, then sell a part to hit the breakeven point. The rest will be the words are yours.
  • Or buy WHEN The token has officially gone public. If you missed it after buying it, you should stop and watch the market.

note: The price of buying black market or buying price after going to the floor is always more volatile. With this method, the risk is very high, so I sincerely advise you It is better to swallow saliva than swallow tears.
The money in my pocket is still mine. Without this contract we have another, should not trade high risks for low profits.

Based on the basic rules of market supply and demand, for the price to increase, the demand to buy must be greater than the demand to sell. None of the prices increase forever, especially for IEOs later when a lot of people know the rules and how campaigns work.

So most likely price increase and dump prices from the following IEO will be a lot faster.

The above strategies are for reference only and time. You should still follow the market and make your own safety priority decisions!

What do experienced Crypto investors in Vietnam and the world say about IEO?

experienced-crypto-investors-say-about-IEO

Joining this volatile Crypto market, I realized that it's always important to always learn from those around you.

Many individuals, many perspectives will further improve our view of a specific project. From there, make more accurate investment decisions.

So let's find out what experts and investors experienced in this market in both Vietnam and around the world have to say about IEO trends Please!

CZ - CEO of Binance

cz-CEO-Binance-comments-about-IEO

"The success of Binance Launchpad shows that it is not the market that is not interested in ICOs but the market that is interested only in good ICOs"

Bobby Ong - Co-Founder Coingecko

bobby-ONG-Co-Founder-Coingecko-got-about-IEO

“In my opinion, IEO is not a temporary trend but it is happening now. It is popular in this bear market. We have seen investors become less interested in ICOs since the second half of 1. And even ICOs are extremely difficult to raise capital when entering 2018.

IEO development has created new interest in projects. Most of the well-known IEO projects are Binance Launchpad projects. Where BitTorrent and Fetch.AI tokens were sold out in record short periods.

You can imagine IEO as a marketing channel where projects are known to people who have signed up and KYC at the exchange. This can be compared to projects that bring their own money for marketing and KYC activities to individual users.

With the token of the projects, conducting IEO is also very reasonable. Because it is almost guaranteed to pay only one time to list the floor instead of paying an additional fee to be listed on the exchange.

I think the exchanges are using IEO to attract and increase volume for them. Binance, for example, carefully selected projects and created hype in the community where IEO projects were sold out in a very short time and their prices increased sharply. This is reminiscent of the development period of the ICO.

However, some other exchanges use IEO in a different way to make money during this bearish market. They charge a fixed fee with IEOs and get a percentage based on the total amount of funding raised. ”

Mr. Thuan Lam - Founder, Thuan Lam Capital Analytics (Youtube Channel)

Thuan-lam-Founder-Thuan-Lam-Analytics-identify-about-IEO

“IEO is a very necessary way of calling in this market. At least in the short term, the IEO wave has helped the market a little warmer, making some people interested in the market.

But in the long run, this way of calling capital will ease. Not like now, when everyone rushes into buying IEO.

One day, IEO projects are not as profitable as everyone wants them to be. Because the more projects are launched later, the growth of investors will not be as much as the growth of IEO projects ... making IEOs not to be promoted as at present.

And when prices are not boosted, people lose interest. ”

Mr. Hoang Linh, CEO, TradingIG.com

Hoang-Linh-CEO-TradingIG.com-got-about-IEO

“IEO is actually a form of calling capital by token but it is a link of the exchange and token holder.

It shortened by 1 step compared to the ICO that before the fund was completed, it just started trading on the floor, the investor knows in advance which platform it will then raise capital.

It may be the latest trend in a short time. If people believe in ICOs, they can believe in IEO.

But more important is the true nature of the Crypto market and the actual use case of Blockchain. Calling capital has changed its form, but the core is that the product does not come into practice, it also fails.

Basically I think IEO is also because the market has FOMO forming a new trend. But maybe it won't become a long trend, it will look like lending 2017. ”

Mr. Van Dinh Hoa, Co-Founder, Crypto Japan.

Van-Dinh-Hoa-Co-Founder-Crypto-Japan-judgment-about-IEO

“In my opinion, IEO is like an ICO version 2. This time the fomo's strong back support makes it fly. But then on, the price will gradually return to true value.

In the following, many people will go to the top. At that time, the projects were still IEO but showed more things about the team, about technology .... Then gradually saturated.

This time is good. Warming up the market. Fun. Exciting. But the community will also need more knowledge and risk management to fight long. ”

Mr. Lukas Rich, Co-Founder, MoonRadius.

Lukas-Rich-Co-Founder-MoonRadius-comments-about-IEO

“Personally, I'm not too surprised when the IEO projects on Binance are so hot. By simply the number of users on Binance is too crowded.

The traders themselves have available cash flow, already investors ready to invest. So it's a form of advertising with fee zero = 0 thanks to Binance.

Well done!

However, for exchanges that are less hot than Binance, the question is whether it will be so successful?

The second is that the market is showing signs of warming again, a lot of money flows back into the market. It may not turn up trend, but certainly the price of the market will generally be higher than the 2 dump.

So for me, IEO is not too new, it is important which floor it is, there are many users or not? How much is the cap sold on that floor? Whole sale on it or part?

With BitTorrent, it is HOT itself, everyone knows what it is before deploying. As for the second project on BNB, to be honest, who cares what it is, what it does, what it serves.

People only know that it is open for sale on Binance Launchpad and come in to buy it. So the nature of the project is no different from the early ICO.
ICO launch is HOT, is x times.

IEO will still be the trend with the floor HOT and know how to do. And how is that project, is it good, is it potential, is it serious ... it's still the same story as before.

If floor owners are serious, they will select and screen out good and potential projects. And if they just think for their floor coins to increase prices, charge from the project ... then the project listing sooner or later will fail. ”

Mr. Vinh The Nguyen - CEO, Vicion.app

Vinh-The-Nguyen-CEO-Vicion.app-comment-about-IEO

“IEO is also a trend among many other trends currently in the fomo period and is also earning opportunities. You should focus on fighting on the big floor.

IEO is no different than an ICO, but if guaranteed by large exchanges like Binance, that is the difference. And the coins and rubbish floor should not enter.

IEO is currently unknown. But IEO cIt is getting harder and harder to buy, so it is likely that the trend will attract a lot of attention.

However, you should also be alert in the investment process. Because there are definitely many scam projects coming up. You should be very careful. ”

Giap Van Dai - CEO, Nami Trade & BitBattle.io

Giap-Van-Dai-CEO-Nami-Trade-commenting on IEO

“Basically, IEOs will help centralized operations call for capital. If the project wants IEO, they need a relationship with the exchanges.

As you can see, the large floors are mostly concentrated in China. And for exchanges like Coinbase, or some European exchanges, they have not really shown signs of joining the trend of IEO. Therefore, the main axis of IEO in my opinion only exists in China and the United States.

A fact that rarely changes is that investors often do not understand anything about the project they are investing in. They only invest because it is the IEO of a large exchange so they believe that the project will have liquidity.

But for a market like Crypto and Blockchain, the token can also be used for use in the project's product / ecosystem.

Therefore, if the true purpose of the token fails, the project will fundamentally fail.

The biggest difference between IEO and ICO for investors is in liquidity. The level of liquidity is good thanks to taking advantage of the users of the floor and liquidity of the floor, so the floor will often compress the amount of buying / demand to buy.

That is, for example, the need to invest is $ 70M but will only buy 7M $ to motivate liquidity and increase prices after selling IEO.

This will basically have a problem like this: For example, FET they need about $ 50M to be able to complete their project and recently they raised IEO $ 6M in 21 22s.

But that amount will not be enough for them to research 2 or 3 more years. They will also have to sell their tokens to stay active. Therefore IEO, although creating liquidity for the initial investment group, is not good in the long term.

In general IEO is a new direction of crowdfunding, not an upgrade.

Basic power will now be in the hands of exchanges. They have the right to decide which projects are good for IEO.

They can also decide the token price, the right to decide on liquidity, even they have the right to hold shares to make decisions about the product. They always have the right to Marketing to navigate public opinion and have tokens to make market prices ...

So if an IEO project is on a good floor, that's a good thing. Otherwise, it would be very dangerous with such a concentration of power.

Try asking if a Blockchain startup is born at this point and must go to IEO.

Is there any chance to get acquainted with Binance, OKEx, Houbi ...? And do they agree to allow IEO on their platform?

Very difficult!

IEO is better for speculation but not good for investing. Because no investor invested in a project takes 1 seconds to have the opportunity to buy.

All of them will think that if they buy IEO, leave 1 week and x5 there will be no reason for them to keep. While there are still many other IEOs that will probably bring them more profit.

And yet, if they are the ones who sell at x5 - x10 ... then who will be the next buyer? "

Mr. Nguyen Hoang Diep - Founder Earn Money

Nguyễn-Hoàng-Điệp-Founder-Earn-Money-on-Identifying-IEO

“IEO is definitely a new trend in the cryptocurrency market, because it has just started in a few top exchanges like Binance and BitMax.

Other exchanges will follow this trend and gradually form an IEO bubble. The development and recession time of IEO will be even shorter than that of ICO.

Whenever an IEO market is when the IEO trend is about to end, investors should look at the market and realize this to know when it is not advisable to invest in IEO.

For investors, IEO will be safer than ICOs because it is tied to the reputation of the issuers. And should only invest in IEO on the big, top floors, should not participate in small exchanges. ”

summary

The IEO after all is just a form of calling for capital that is emerging as a phenomenon among crypto investors. Simply because people can earn too much profit and too fast.

We have been through ICOs and now the beginning of IEO.

So what's next? Where will the next trend be? That is still the unanswered question.

Trend comes and trend goes, but every period brings both opportunities and risks for everyone. It is important how we recognize the opportunities to make profits and risks for safe haven.

"What is IEO? A Complete Guide to IEO Investments"is a review of team analysis and research Coin98 on the IEO trend, how we can get the right trend and make a profit.

What about brothers and sisters?

What do you think of the IEO trend? What is the strategy you are applying to make a profit with IEO?

Please comment below the article to me and my brothers and sisters Coin98 be able to interact and learn more!

See you in the next article!

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