IEOs help startups with everything they need
It’s safe to say that IEOs (Initial Exchange Offerings) are leading the way into a bright era of cryptocurrency fundraising – they provide everything a startup needs to get started in tokenizing their company and assets. Exchanges use their vast amount of active users and traders as investors into IEOs, and they push the fundraising efforts to these users in an effort to secure funding for their client startups. This is an extremely beneficial way for new or existing companies to secure funding. The world of standard ICO investing sees startup teams learning a whole new industry – from marketing to development, and as such, the ability for an established large business such as an exchange to take the lead in helping them secure funding is of great benefit to them.
IEOs allow fundraising safety and responsibility
In addition to IEOs helping companies to secure funding in a simplified way that is unprecedented in the industry, they also help the industry at large in one key way. Responsibility. It’s of no shock to anyone reading this that the world of ICOs has been one full of poorly-equipped companies not knowing how to handle their users funds, and also downright scams that have simply taken the funds available to them and disappeared. Of course most of these scam artists eventually get caught, but the fact is that the industry has been damaged hugely by these individuals and groups – not only in terms of money lost, but also in reputation. A company which can regulate token sales, do all the due diligence necessary, and stake their reputation against the company they’re acquiring funding for, is a refreshing change to the cryptocurrency ecosystem as a whole.
Binance is leading the way with IEOs
Of all the exchange launching IEOs currently, there is one unsurprising leader – Binance. The leading exchange is also by far the leading Launchpad for IEOs. Binance has 10 million active users who invest in cryptocurrencies on a regular basis, and so with this volume of users that IEOs are marketed to – it’s unsurprising that there are some pretty hefty figures for the fundraising so far. The Launchpad has currently raised over $20 million in funding for startup projects. Today we’ll look at the four main ones and see how they’ve fared in their fundraising efforts.
The Celer Network is a project designed to develop off-chain decentralized applications. During its IEO, the project managed to raise an impressive $5 million USD. The Celer project launched its IEO with Binance on April 1st 2018, and it concluded on March 19 2019. That’s a pretty long running IEO. In total, Celer sold nearly 600 million CELR, its native token.
This is quite something. The Matic IEO launched on April 24 2019, and it sold out on the first day. The project sold a total of 19% of its tokens for $5 million USD. The project has since went on to have incredible growth – investors saw a high of 1600% return on their investment, and that figure currently rests at around 800%.
Fetch.AI sold a tiny 6% of their total token supply in a successful IEO that ended on February 5 2019. The company raised $6 million, and the most incredible thing is that the IEO completely sold out in TEN SECONDS. The all time high from this IEO was a lot less at 400%, and the price has currently dropped significantly, but that’s still an incredible return for any investor.
The BitTorrent IEO launched on November 1 2018, and concluded on January 28 2019. This IEO had 2 separate rounds of investment – the first was using Binance’s native token, BNB, and the second used TRX. They raised the most yet, at $7.2 million, and the investors’ return was almost 1500%.
What does this success mean for the future of the industry?
This success spells a bright future for IEOs. These 4 projects have not only been successful with their fundraising, they’ve also generated a huge return for the initial investors. It seems to be clear that IEOs are the way forwards – both in terms of investor security and ROI, industry reputation, and successful fundraising for startups.