Editor’s note: This article from the block BlockBeats (ID:BlockBeats), the author of the rhythm rhythm: block 0x2, authorized reprint by Odaily daily planet.
Read this article you must first understand the concept of the issuance of four tokens:
ICO (Initial Coin Offering) for the first time tokens issued, refers to the block chain project to issue their own tokens to the public at the beginning of the project, in exchange for Ethernet square, bitcoin and other mainstream currency, to raise funds for the role of the mode of ICO reached its peak in 2017, a large number of low quality fraud in 2018, the project are frequent. Model gradually fever.
IEO (Initial Exchange Offering), the first exchange issued, is referred to as the fund-raising platform for exchange, the exchange issued to the user (sale) token behavior, then the exchange will become the two tokens in the secondary market on the main market. The latest case is a series of currency project Launchpad led by BitTorrent.
IFO (Initial Fork Offering), the first branch issued, bitcoin and other mainstream currency function attributes and user basis, to modify or supplement the future route for the reason of defects, through some bifurcation generates a new token encryption currency issue, the most recent case is 2018 11 Craig Steven Wright BCH may generate a new bifurcation the BSV token.
IMO (Initial Miner Offering), for the first time its issue, refers to the project parties themselves selling machine (hardware products), through the purchase of official certification of hardware products mining way users to issue tokens. The most well known example is the former thunder play off clouds and play off the coin (source: chain guest)
– do you think the recent market is recovering?
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After the lunar new year, to Launchpad as the representative of the new currency token distribution platform project began to appear, not only successfully led to the new project tokens several times the price increase, also let sales tokens used when standard platform BNB currency gained nearly 3 times the growth, at the same time, more exchanges to see this trend, have entered the IEO.
When we talk about IEO, must review the past two years the block chain project financing mode and its consequences. Obviously, ICO and IFO’s “fire”, the whole market of digital encryption currency market confidence. But it seems to be to exchange with the confidence of a shares platform credibility and coins for the endorsement of IEO hot and restored, at the same time, trying to fish in troubled waters motley crew was ready to make fortunes.
When the ICO has not aroused a little ripple inner investors, the market urgently needs a new hot spot to lead the investment frenzy and investment confidence, just a good time to IEO. Based on the current market and forecasts for the future, we believe that there will soon be a follow-up of the exchange mode
Block chain project financing and currency logic
The history of the issue with tokens (ICO, Initial Coin Offering) and in 2013 July, when the bitcointalk forum users on a project called Mastercoin for the congregation raised, the project raised 5000BTC (BTC at the price of only $80), $400 thousand. Ordinary investors use their hands bitcoin exchange Mastercoin tokens, as its token holder, or if you like, can also be called “shareholders”.
Written by Vitalik Buterin in 11 2013 years Mastercoin project, V Bitcoin Magazine was still God as a reporter, editor. The future, based on Ethernet Ethernet Fang Fang block chain project, most of them take ICO financing.
The higher value or the main currency currency share means new projects, triggered a new wave of capital market.
The traditional means of raising the need for cash transactions, time-consuming. If international, so time will be on a weekly basis for calculation, if the inflow and outflow of funds and approval amount, then the time will be stretched on a monthly basis. But the use of bitcoin or etheric Fang can avoid currency problems mentioned above, speed, protection of privacy, and once the fund-raising project tokens issued, you can quickly obtain liquidity, promote new projects in the market popular.
The project raised bitcoin or Ethernet square, development projects, publicity, community operators, and spend money to exchange tokens on project transactions. Investors are traded on exchanges, liquidity, profit. This fund-raising approach is a fatal blow to the traditional risk investment funds, investment and financing channels faster and faster recovery period of investment, so a lot of VC Token in Fund.
But ICO has many fatal problems: uneven quality of new projects, there is a huge security risk assets, and investors are not in accordance with the unified price raised. Even if there is a large number of celebrity platform recommended projects, there are still run away the risk; even the fund to invest in a well-known projects, new projects may also token circulation in the market after the break and collapse; even if the problem does not occur if the currency fund depreciation, so investors obtain project tokens the project will therefore value loss; there may be multiple stages of private investors, the later need to assume the investment cost is bigger, the greater the risk is.
IEO one solution to this problem (Initial Exchange Offering), is the use of currency exchange platform price volatility is relatively low as the standard currency to buy. This scheme saves a large number of links, eliminating the middle of possible private intermediary, do not need to go to drop, but also to the platform as the project quality audit endorsement, let investors relatively more assured.
But with the increase of IEO practice, the concept is changing, such as allowing private projects had involved in IEO (Celer Network), allowing the IEO project drop (Bittorrent) etc..
From the financing nature, IEO and ICO and no essential difference, its financing currency into exchange platform coins from bitcoin, Ethernet square, EOS and other traditional ICO financing currency.
But because of the emergence of this new currency platform but play have become interesting up.
Change the name, nature or fund-raising
Although there is no official, but an Launchpad currency is a typical IEO mode, which all have landed and the future will be landing in the release of the Token must be purchased through the currency Anping NT BNB. Fire currency on Friday announced a business Huobi Prime, similar to the same flag, the fire coins do not think that the official business is IEO.
Even so, in promoting the concept of IEO, BNB, HT and other platforms became an instant currency market tight Token. Because after Launchpad and Huobi Prime projects must be linked with the platform of currency, which means that originally only to enjoy the dividends or to vote the money platform now has a new use of the scene, the value added is brought about by the price rise.
In the past 1 months, has completed two tokens sells the Launchpad BNB to a 110% increase, hear HT investors also crashed rumors secretly propaganda Huobi Prime, promoting HT in non rationality in the market rose 104%.
Fire coins as early as a year ago tried more than coin voting form to complete new project exchange issued. After the fire in the middle of last year HADAX currency exchange project all merged into the fire coins Global, vote on currency pattern disappears using currency platform fire currency HT, fire currency exchange and currency Global not entirely by the official team decision.
HADAX vote on currency exchange platform and IEO mode for currency price promote different approaches but equally satisfactory results. Voters to buy HT, then in the hands of the HT vote for the right project, different place is that the voting HT is expendable, voters can only exchange for a token after the currency trading rights. In the consumable logic, early investors or project for the HADAX project who voted project tokens of their own side, otherwise they will not vote for a new project.
For the project, they need the money, as long as the money, whether it is ETH, BNB, HT or OKB, as long as you can for the company operation and development costs, can we. So, in the current market conditions, its holding has depreciated by 80% ETH, rather than offering value for the price stability or the period of BNB/HT.
As discussed above, the rhythm of BlockBeats block, IEO is only for a currency ICO.
Why do you want to restart the IEO at this point in time?
Block rhythm BlockBeats noted that the vote currency in 2018 August had been close to failure. 7 2018 30, an 8 coin completed the first round of voting on the currency, turnout compared to before tens of thousands of votes to only the size of a substantial decline in more than a thousand, and this time the vote on the currency currency project Polymath only got 275 votes.
In the previous 2 months, HADAX also announced the transfer plate, HADAX vote currency mode also stopped.
The vote to pull the platform dollar routine, began to work, but with the market overall decline and new project quality is uneven, the currency gradually No one shows any interest in voting. But no new projects on the currency, the exchange will lose a big income, in the bear market, the reduction of income is precious.
In the past few months, on a handful of new currency exchange. One is the use of ICO to the project financing scam has been cleaning up the market, the two is the exchange need a reason to move up the value of the platform, to obtain more profits. The value of the platform most directly reflected in the currency on the platform. Fire currency exchange, issued a number of Token for a number of new businesses, and HT the lowest price dip to 6 yuan. An BNB currency from 70 yuan in the year, fell to the lowest 30 yuan less than.
Fortunately, at the beginning of 2019, the market rebounded slightly after the 2018 heat, a year out, some of the more high-quality projects left, block rhythm in the previous articles BlockBeats some mention. Special marketing will coincides with Sun Yuchen with BitTorrent heat announced the start of all the chips, and the most traded currency exchange on the Launchpad restart, click. Money myself may not have thought of BTT sales can be hot, but also directly to the BNB back to the level before the first half. The most important is, after the new year, ready to market, investors are looking forward to the big exchanges launched new projects, hoping to earn the new year at the beginning of the color from the market liquidity.
At the right time, the start of IEO and is perfectly logical and reasonable welcomed by investors. Although the outside world for the controversial Launchpad project quality, such as rhythm today still think BlockBeats block BitTorrent does not need to send money, the rating agencies TokenGazer think Fetch.ai project quality is poor, but still can not stop the boom of investors and panic buying and trading of shares.
This boom, busy to Launchpad has yet to sell, other exchanges began to air currency futures trading. Global investors like the hungry children cry piteously for food in front of the computer, look forward to the exchange of feeding more IEO.
The project of the camp “defection”
We noticed a very interesting point of view to, that someone mentioned BNB future will replace the etheric Fang to become the new issuing public chain. Further extension of this idea is the project before using ETH for fund-raising, and now the currency placement fund-raising, virtually abandoned the etheric Fang ecology, because the money chain performance better than an etheric fang.
However, the standpoint of people do not realize that money chain now can only provide security to the center of the exchange and currency function, the lack of intelligent contract function of Ethernet and EOS square block chain, causing it to actually pay more attention to the fund-raising function, with ETH and EOS’s vision still exists very big difference.
Although the project in the Launchpad raised, but the Celer Network Layer-2 or to return to the public square ether chain, BitTorrent BTT also runs in the wave field block chain. Because the money chain cannot bear an, don’t need this technology.
The project in Launchpad, Huobi Prime and other public offering, in fact can be understood as the behavior of a coin. But different from the previous to the project for the currency exchange fee, now the project and exchange in the public offering can achieve a win-win.
Although the public saw chain exchange in early development, but the future performance can reach the other chain level, worthy of discussion. But be sure, in the short term, the project just happened to replace the financing channels. There is no ecological defected side of the project, but the project direction more easily fund-raising channels.
IEO can restore market confidence?
Although the reputation of peace seems to have NT platform as a new financing guarantee “IEO”, but not yet out of the nature of ICO, block BlockBeats rhythm will be more willing to become IECO IEO, Initial Exchange Coin Offering, it is easier to understand.
2018 the second half of the year, when prices plummeted ETH Ethernet square, block BlockBeats, including rhythm of media in the discussion to the etheric square ecological RMB and tens of thousands of DAU DAPP, and what its price support in the distance [block chain project panic selling ETH how long? POS] consensus mechanism block chain is an indisputable fact. Investors are more willing to bitcoin, Wright currency and other currencies as a store of value Coin. It was embarrassing for the positioning of the etheric fang.
The new currency platform panic buying project, let the etheric square, EOS and other traditional ICO currency eclipsed. With an example of coins, coins on the coin in the coin will give priority to safety safety chain RMB project, realize the exchange of project and the value of the bound. If you copy the above theory about Ethernet square ETH value chain, currency security issuing more of the project, the higher the value of BNB.
Is this really the case? No, EOS made hundreds of dollars, but the price is not EOS shrinkage in the corner can not move.
The reason is the real decision currency price projects, namely project team, development level, market level. Admittedly, the Launchpad project quality is better than many projects before the exchange currency, it strengthened the effect of exchange project endorsement.
The project is still a number of block chain project, the difference is carried out a screening in exchange for the endorsement, but is still the blockchain high risk, whether the stock exchange or the project, are unable to non rational market intervention, can not guarantee that all IEO projects can benefit double etc..
The risk investment IEO project has not disappeared, but were weakened to a certain extent in some aspects.
There are a lot of risk not because of the emergence of platform coins disappeared, such as block chain project is still high risk, there are private equity and other IEO projects. Especially the latter, Celer Network had been out of private investors selling layers share news, raised sales news on Launchpad, the official Celer team also said that private equity share will also be with Launchpad and unlock part sales,
But the price is much higher than the private public offering price. Private investors and public investors must have a price game.
IEO for some help to restore market confidence, the exchange will be the same as in the past no longer recognize only the money on random coins. As long as the IEO issuing junk currency, currency exchange platform will crash.
IEO will soon become inferior exchange money making tool
This paper is in the rhythm of block BlockBeats at the same time, ZBG, Kucoin, IEO exchange about on-line business news also appear on the market.
We think this model is likely to be abused as a tool of inferior project “money exchanges together”. Exchange for bad projects or even their own control project endorsement, to issue tokens for inferior block chain project using IEO way to uplift their platform tokens.
These inferior exchanges will break KYC limit, let the non-compliance of the investors have entered the market, in flagrant violation of the relevant national law.
In general, reduced along with the exchange and no endorsement of the risk of IEO, but probably because of abuse leads to inferior amphitropous project. To remind investors, investment still need to see the risk of the project itself, do not blindly trust exchange endorsement.