Last month, when we told you about the top cryptocurrency trends for April 2019, you must have been excited to learn about the Initial Exchange Offerings or IEOs that were becoming increasingly popular. Although we tried our best to tell you what it was even within the limited scope of that article, we thought you might want a more detailed insight into Initial Exchange Offerings: a booming trend in crypto today.
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Before anything else, it is imperative to understand what IEOs are in the first place. Then, we can move on and take a look at the specific developments with regard to IEOs that have been taking place of late.
What Are Initial Exchange Offerings?
Initial Exchange Offerings are a new system of launching a token sale where it does not quite follow the route taken in the case of an ICO.
Instead of distributing tokens amongst those contributing funds to the development process, the token developers in an IEO approach the crypto exchanges directly. As they go to the top cryptocurrency exchanges of their choice, they are usually looking for a listing and publicity for their respective tokens so that a crowdsale can occur.
In return for a certain fee, or even an equity stake, these exchanges provide listing services to the new token and engage in active marketing so as to popularize that new token among its existing base of crypto users and enthusiasts. In this way, the new token is able to take advantage of tapping into an existing user base without a lot of effort.
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IEOs: Latest Developments
Top exchange Binance has already taken the initiative to stay ahead of the curve as far as the IEO trend is concerned. It has come out with a whole new division called the Binance Launchpad to work on its IEO requirements.
In fact, BitTorrent, which launched a token sale of the Binance Launchpad managed to reach its crowdsale hardcap of $7.2 million in just fifteen minutes.
Other than Binance, exchanges such Okex and KuCoin are also reportedly buying into the IEO trend these days.
However, as per reports from anonymous sources cited by several crypto media outlets, it seems that coin developers are being asked increasingly hefty sums for getting their tokens a spot on their favourite exchange.
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