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IEOs vs ICOs: What Are the Differences?

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Thu, 05/30/2019 - 10:18
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    Lots of people already know about ICOs, as they were the trend of 2017. However, today there are many other ways of fundraising. For example, recently, the topic of STOs was highly discussed and popular. But now some new thing has appeared in the blockchain, which is IEOs (Initial Exchange Offering). In the following article, we will analyze the main differences between IEOs and ICOs

Cover image via www.123rf.com
Contents

2018 gave us an alternative to ICOs: IEOs, or Initial Exchange Offerings. Analyzing these 2 choices of attracting funds, the crucial difference between the first method from the second is that in the second case, exchanges actively take part in the raising investments procedure, allowing only the most promising and viable businesses to be listed on trading platforms.

Why do we need IEOs if there are ICOs?

To answer this question, you need to look into the recent past, in which the rapid growth of ICO popularity was accompanied by an equally intense process of discrediting this tool for raising investments. Legal uncertainty, a huge number of fraudulent projects, the lack of effective mechanisms to protect the interests of investors have undermined faith in the ICO. Connection to the mechanism of attracting investments of large stock exchanges is able to regain confidence in the token sale.

The main role of the exchange here is to examine new projects, assess their investment prospects, risks, and overall viability. Allowing the project to conduct an IEO, the exchange assumes the great share of reputational risks, which increases investor confidence in the placement.

So what to choose?

In order to make a choice, it is required to study in more detail both ways.

An IEO is an Initial Exchange Offering, which is a fundraising mechanism through:

  • Direct investor interest without engaging marketing.

  • Taking the reputational risk exchange, which significantly increases the degree of investor confidence.

  • A total absence of “GAS war” between the participants (if the site is decentralized).

An ICO is an Initial Coin Offering and is determined by the idea. To implement it, one needs:

  • A preliminary announcement by the initiators of ideas that do not yet exist.

  • Conducting an offer.

  • Managing of an advertising company.

  • Token sale or the beginning of sales with the release of in-platform solutions for the purchase of coins.

Pros and Cons

If in the first case, many have become millionaires, then an even larger number of investors got scammed.

The attractive features:

  • A large percentage of liquidity

  • High availability

  • Responsive community support

  • Simplicity

Negative qualities include:

  • Colossal liquidity at the same time is a drawback, as it makes it possible to issue a secret sale of tokens

  • Lack of regulation

  • Easy use for criminal purposes

  • Speculative risks

  • Market manipulation

As for IEO, its positive properties are already listed, and among the negative ones, it should be mentioned that it cannot give an absolute guarantee of its viability.

Initial Exchange Offering platforms

Many cryptocurrency trading platforms have already submitted or announced their launch of platforms for token placement. The world's biggest digital asset exchange in terms of trade volume, Binance, is in 1st place thanks to its Launchpad program.

Launchpad by Binance

This is the 1st example of IEO implementation. The project has been running for 2 years. The main idea of it is to give a chance to its clients to take part in the Initial Coin Offering (ICO) and get tokens straight to their wallets on the trading platform.

Until now, Launchpad has profited Binance and its team. The process makes unique usage of the “fuel” of the exchange: Binance Coin or BNB since individual traders and businesses can only get benefit from it when participating in the listed projects. Thanks to this innovation, the team of Binance will get a chance to attract the attention of a wider public, as, at the moment, it is the platform with the largest quantity of customers in the world.

The following platforms such as Ginto ($3.4 million), Bread ($6 million) BitTorrent ($7.2 million), and Fetch project ($6 million) were placed on the Binance Launchpad. On March 19, Celer token was added to them.

Bitmax

Another trading platform, Bitmax, recently also announced its plan towards Launchpad. The DOS Network was the 1st Initial Exchange Offering launched on it. The start of the token sale began at the beginning of the current year, particularly, the 10th of March. The network mentioned above is aimed at developing the implementation of the distributed base technology with real and existing information and computing power.

Bittrex

Bittrex IEO logo
Image by Bittrex

At the beginning of March 2019, Bittrex revealed and announced in news the start of its first IEO. As reported, Bittrex will place a RAID token (hard cap – $ 6 million) on its platform, offering its customers the opportunity to buy coins for a set rate straight from founders on the exchange.

However, literally at the last minute before the start of the token sale, on March 14, the exchange canceled raising funds, promising to report the reasons a bit later.

IEO by OKEx

OKEx Cryptocurrency Exchange will also hold its 1st ever Initial Exchange Placement (same as Initial Exchange Offering) in the near future. The Maltese trading platform reported that its program will be called “OK Jumpstart” and will give the opportunity to founders to sell their digital assets on the exchange in order to back their businesses.

OKEx platform is planning to add additional security to the financing procedure and assist founders to attract more investors. The Operations Manager of the company noted that the new model will bring significant profits to both sides the trading platform itself and project founders, particularly startups who are looking for means to implement their concepts.

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Spotlight by KuCoin

KuCoin digital currency trading platform is planning to start its IEO project which is called KuCoin Spotlight. One of the team members of the exchange, Executive Director Mike Gan, feels quite optimistic and confident that the new project will give an opportunity its clients to invest in promising startups without third-parties.

Huobi Prime by Huobi trading platform

Huobi Prime logo
Image by Huobi 

The Huobi trading platform took the example of the aforementioned exchange, reporting the imminent start of Huobi Prime, its Initial Exchange Placement ecosystem. But, it will be different from other competitors, as it will become an ecosystem for selectively listing tokens based on their local “fuel”, the Huobi token.

The cryptocurrency exchange has not yet given additional information about their IEO, but it is attempting to offer superb quality cryptocurrency startups a contemporary, quick and compatible chance for the listing of coins.

EXMO

There are no special changes in the IEO algorithm for EXMO. They are planning to focus on analyzing promising projects in which they will evaluate the concept, the potential benefits of the product for the cryptographic market, already existing developments, the professionalism of the team, as well as community activity and the interaction between developers and users. The fundraising will be carried out using already existing digital assets, and the first project for a token sale is expected to be Paytomat, the well-known crypto wallet Paytomat Wallet and a well-developed infrastructure for the implementation of cryptocurrency in retail outlets.

Will IEOs create a new fundraising boom?

ICOs created a fundraising blast in 2017 and last year. However, a huge number of blockchain startups were carried out by fraudsters. Due to this, and also because of ICO bans, some people can admit that this is not a perfect fundraising option for cryptocurrency startups.

Contrarily, IEOs provide an expanded level of confidence in projects, because the trading platforms that host crowd sales are actively involved in the attracting money procedure, which increases the effectiveness of the token sale. Consequently, IEO can become a standard example for attracting funds in a crypto-environment and might even establish the next trend of fundraising.

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Conclusion

This format does not have many disadvantages compared to the same ICO and many consider IEO the next stage in the evolution of ICO. However, it is still too early to talk about this – so far we have not seen the implemented project, which raised funds through the initial stock exchange placement. And there is also the lack of regulation of this format by government agencies. It is not yet known how exactly the state bodies will regulate the initial exchange placement.

But if to compare the new method of attracting funds, it looks many times more transparent and more specific than an Initial Coin Offering or ICO. The responsibility for the selection of projects, their prospects, and risks lie on the cryptocurrency exchange, which means the choice of the final project of the investor is much easier. The chances of running into a fraudulent project with such an approach are close to zero, namely, because of these ICOs have lost their relevance.

About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and make predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others.

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2019 Tron (TRX) Price Analysis and Forecast for 2020 [Key Levels & Trends]

Cryptocurrency Trading
Wed, 09/25/2019 - 11:18
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Cover image via www.123rf.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Contents

At first glance, cryptocurrency Tron doesn’t have the task of changing the world we know. But the idea of ​​TRX has enough interest to live — creating a decentralized environment in which users can make and host entertainment content. And, it would seem, the concept sounds twofold, but for almost 2 years now Tron has been living and developing. And what awaits the crypto next? Let's see!

TRX coin

The main coin of Tron — TRX, the total issue of which is 100 billion coins. At present, the capitalization of the altcoin is $2.2 billion. With this indicator, Tron takes the 12th place in the crypto market. More tokens will not be released, one and most of the existing ones are in the hands of Tron developers. This fact raises some doubts in crypto holders ranks. However, Tron has qualitative differences from many cryptocurrencies:

  • Scalability.

  • High bandwidth.

  • Availability.

  • Justin Sun.

On the last character, we should put special emphasis. Justin Sun is Tron’s founder and an important figure in the crypto investing world. It’s impossible not to note the marketing ability of Sun, who skillfully promotes Tron in all imaginable and unthinkable ways. We will talk about them separately.

In general, investing in Tron seems like a pretty promising path today. Consider historical price changes, analysis and the impact of other sources on the TRX rate.

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Historical changes in the price of Tron

Analysis and forecast of TRX price should start with a look at the historical data. Tron is a fairly young cryptocurrency, created at the end of 2017, and the network itself was launched only in the middle of 2018. Tron price in the background of all events changed as follows:

  1. At the time of creation, at the ICO stage, the price was $0.002.

  2. After the token release, the price rose to $0.05 in December 2017.

  3. The historical maximum was reached at the beginning of January 2018 and amounted to $0.25 for 1 Tron coin.

  4. After a while, the price dropped to a value of $0.03-0.04.

  5. In early May, after the network launch, the price soared to a mark of $0.08, followed by a prolonged fall.

  6. The minimal Tron price was fixed in December 2018, then the coin is worth $0.011.

Today, after two phases of growth, Tron is trading in the region of $0.033 for one TRX token. The growth of an investing crypto asset cannot be called explosive, but a positive movement is can be observed.

News background

In Tron’s case, the most important thing is playing the news background. Justin Sun is trying in every way to create hype around his brainchild. One of these steps is to purchase the right to dine with the investing legend — Warren Buffett. Sun gave $4.5 million for this opportunity. Even this news increased the price of his crypto.

Later in the summer of 2019, the SUN Network is scheduled to launch, news about which is already actively appearing in many sources. It’s worth noting also one of the latest popular news from Tron. TRX will become the official cryptocurrency to pay at IEOs on the Latoken platform, which should qualitatively affect the liquidity and Tron price.

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Tron analysis and forecast from experts

Tron, like many altcoins, is not explosively popular with experts. Forecasts and analyses collect hundreds, but not thousands of views. However, almost every day you can find interesting thoughts and forecasts about the future of Tron. Here are some of them.

The user Cryptotrader_123 believes that the TRX chart is bullish and predicts explosive growth after the pattern is completed. Following its trend line, growth will continue, but a correction is possible in the near future. However, step by step, Tron will take its own.

TRX price forecast by Cryptotrader_123
Image by TradingView

According to user the_booty analysis, investing in Tron can be good in marked areas. The user advises to open long positions and keep the crypto. To a greater extent, he predicts an increase in the price of Tron, but key levels in the situation with a fall are also noted.

Tron price analysis by the_booty
Image by TradingView

User SajjadMazroei built his analysis on triangles. In his opinion, a small one appears inside the bigger one. He predicts such developments in the coming months:

  1. If the small triangle is broken down, the price may drop to $0.026, but then recover to $0.031.

  2. If TRX breaks up, we can expect a price of $0.04.

  3. And if the movement is really strong, then it’s possible to conquer the height of $0.055.

Analysis of TRX charts by SajjadMazroei
Image by TradingView

We remind you that these are just opinions and you need to understand everything yourself.

Tron price forecast for 2020

We have our own thoughts and forecasts for Tron’s price for the second half of 2019. The technical characteristics of Tron are quite controversial. Oscillator analysis indicates the need to sell existing assets while moving averages indicate a strong buy. We believe that the truth is somewhere in the middle. Both price reduction and growth are possible.

Analysis of Tron price charts
Image by TradingView

We predict that the decisive factor will be the full launch of SUN Network, which is scheduled for August 10. The upgrade involves solving many problems with the scalability, bandwidth and protection level of dApps.

Analysis of the trend line shows that it is ascending, so you should not expect a noticeable decline in the price of Tron. Before the launch of SUN Network, the price is unlikely to surpass the $0.04 mark, but it’s not worth waiting for a fall below the $0.029 mark.

Any dramatic changes will be caused by the movement of Bitcoin and the mood in the crypto market. Tron isn’t an exception, it’s also dependent on the movements of BTC, like any other altcoin. With a positive scenario, it’s possible to predict that by the end of 2019 the price of TRX will reach $0.05. Growth beyond this mark is possible but unlikely. The bottom price is unlikely to be below $0.022, that is, in the worst case, roll back to the values of 2018.

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Conclusion

As an investing crypto asset, Tron seems pretty promising. The probability of losing money by investing in it is insignificant, but the altcoin may not bring much profit. We hope our forecast will help you make the right decision. Last piece of advice — follow the news around Tron, as it is the most important factor.

About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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