IEO turned red behind: “sit” project, exchange currency price?

Fast iterative update block chain industry is not only reflected in the technology development, is also reflected in the way of financing. ICO was cool, STO appeared, and now, STO’s thunder is not completely cleared, the heatwave has hit IEO.

Fast iterative update block chain industry is not only reflected in the technology development, is also reflected in the way of financing. ICO was cool, STO appeared, and now, STO’s thunder is not completely cleared, the heatwave has hit IEO.

On the evening of 19 to 10 points, the CELR Launchpad IEO in the currency of an only 17 minutes 35 seconds looted, users grab share of state and the probability of no less than grab train tickets. This is a popular phenomenon going back to the beginning of this year, an asset distribution platform Launchpad currency to restart, restart after the first project BTT popular not only aroused investors’ enthusiasm and confidence, let colleagues himself. Ann bitcoin founder Zhao Changpeng in a media interview, said, “the core of the IEO model is to find a good project, welcome to copy other exchanges.”

“Ready to exchange”, rushed to the new feast “”. Fire currency has announced on-line Huobi Prime in late March, officials claim that this is a coin around HT integrated service platform. OKEx CEO JayHao also announced that OKEX utility token sales platform “OK Jumpstart” from technology to products are ready, ready to be launched. Kucoin, Bittrex and ZBG have similar news about on-line platform. But the Bittrex is in a few hours before the start of the first emergency cancellation IEO.

The full name of IEO InitialExchange Offering (for the first time on exchange issue) issued by a team, need to raise funds to the public offering of the skip ICO link directly to the behavior of raising the token into exchange traded. The idea that IEO can help the project financing, help exchange profit and fame, but also to protect investors from fraud. Zhao Changpeng also admitted to the media, now the financing mode is not only into the money, have to go to the “financial users” and “financial awareness, financial credit”. The status quo is fame and fortune? The project issued by the above platform token performance and how?

Exchange currency does not represent endorsement still break liquidity

At present only an Launchpad currency platform has been on-line for 4 projects (the statistics included in the evening of 19 10 no CELR line) the rest of the platform no on-line open purchase project. The 4 IEO project known in late December 2017 launched GTO and BRD does not require the use of BNB purchase, and this year’s new line of BTT and FET needs.

Results from the statistical point of view, it is interesting that the BTT is down the line on the first day of the 4 project has not only a break of the project, was the most robust, the current market value of more than $130 million, market capitalization ranked forty-sixth. And use the same BNB purchase of FET on the first day only rose 0.8%, but the line has two weeks to break, the current market value has not yet been included in CoinMarketCap, only ranked 1789. But the morning line of GTO and BRD on the first day of rose, rose nearly 20%, but has been broken. The current GTO market ranked 171, BRD market ranked 154.

In the end, decided to token value or the project itself, rather than on what the exchange, in what way the relationship did not obtain financing. Good project to gain market recognition, on other exchanges, opening more transactions on. According to PAData statistics, at present, only a half of the line BTT is circulating a token best 4 project, 29 has landed a total of 14 transactions on the exchange. The second is already more than a year on the line GTO, has landed the 16 exchanges, set up 9 of transactions. FET currently only landed 5 exchange, the establishment of 4 transactions on. BRD is the 4 project in the most illiquid, only landing a total of 3 transactions on the exchange.

Good liquidity 4 projects from the token dependence on currency security exchange can also be seen that the most illiquid BRD, the currency exchange is only landed ANN, followed by FET although has landed the 5 exchanges, but the trading volume of 93% have occurred in the other 4 trading currency, the total only with 7%. While BTT and GTO on currency dependence ANN is much smaller, especially on the line until 1 months of BTT, although the currency Ann Launchpad platform currency success, but the trading volume in the currency security only accounts for 32% of the volume, which means that BTT is also active in other exchanges, is recognized by the market.

Therefore, whether the use of BNB did not affect the purchase items of tokens, tokens or circulation on the project said, although the money is an exchange head, but money is not an endorsement of the effectiveness of the monetary market is encrypted. To be recognized by the market, or rely on the project itself, the strength to speak.

In addition, BNB through the purchase of the project can have tokens more trading volume in the currency, the BTT trading volume has accounted for 6.48% dollars an, FET trading volume accounted for 1.24%, while the trading volume of early project BRD and GTO did not use the BNB purchase currency trading volume accounted for Ann is less than 1%. From the point of view of the transaction, BTT/BNB has accounted for RMB an total transaction volume of 0.42%, trading volume is third only to USDT and BTC large BNB transactions on the FET/BNB, although only 0.07%, but also is the eighth BNB transactions on.

In this sense, Launchpad has a guiding role for the activation of the BNB transaction. The lack of liquidity, the break may make the project less profitable, allowing investors to bear the loss, but in exchange, not only bear the smallest risk, but also a commission, the activation of platform currency, it is a good bargain.

What a coin security co-founder in March 17th micro Bo said, “recently a popular word called IEO, I really do not know what is E? This is what word shorthand? To give you a hand painting emphasis: the project sought after because the project quality and the price is lower than the price of private placement, once launched, all prices are the market, the market is a global market, the quality of the project to the time.”

A win-win situation has not yet appeared long-term positive currency platform

Through the IEO project, in order to raise funds, the exchange platform can activate the money, it seems to have a win-win situation. But the deal is a dynamic process, the currency is not end point, but the starting point, then in this dynamic process, whether the two sides can work together to win?

PAData crawling transaction data on CoinMarketCap, the analysis found that in amplitude, only GTO and BRD of the two issued earlier projects in Launchpad currency and currency BTC was the same to the main resonance, and the correlation between GTO and BRD and the price of RMB BTC is very significant, which means that the market trend and BTC the two are consistent.

Through the use of BNB in Launchpad on the issuance of new currency BTT and FET project in a direction of vibration and the mainstream currency BTC and currency BNB platform are independent, even BTT in the currency price rise trend with BTC and BNB are independent, which means that the possibility of BTT will come out of the independent market more than three other Launchpad projects FET currency, in the currency price with BTC and BNB showed a negative correlation, which means the currency price rise trend in many cases with BTC and BNB on the contrary, but change is independent of the amplitude

From the perspective of correlation between currency price and the amplitude of the day, whether to use the BNB to coin is not bundled with BNB and project money, which has not yet formed two transactions in the process of dynamic win-win situation. It is between BRD and GTO issued earlier with BNB to form resonance with weak motion, but it doesn’t think is directly associated with the BNB, BRD and GTO and BTC because of the moving in the same direction shape resonance is more obvious.

In addition, with the highest BNB currency price correlation but is the same as the currency of the HT platform, and the amplitude between the two also showed a weak correlation, this means that if BNB rises up, then HT may be much larger than the Launchpad issued by the project money, but BNB HT will not necessarily rise, soaring. This shows that, before has not yet formed a win-win in BNB and Launchpad project money tied platform between the coin is more significant.

Although BNB and Launchpad issued currency project and has not formed a win-win situation, even in the short term, when the project issued after the BNB will face a large sell-off. According to an announcement of the coin, grab the two project to raise public investors share of less than 10%. Those who did not purchase the investors in the subscription period after the end of may sell BNB, causing BNB currency fluctuations in the price of more than usual. For example, the end of BTT in February 3rd after the purchase, February 5th BNB day amplitude reached 13.65%, February 6th day amplitude reached 14.30%. At the end of March 2nd FET purchase, March 5th BNB day amplitude reached 20.14%, March 6th, BNB day amplitude reached 11.06%. At present, since the release of BNB single day amplitude variance reached 0.02, higher than that of BTC, also higher than the Launchpad currency. As a purchase intermediary, BNB is not stable, the investors, is undoubtedly a layer of risk.

But in the long run, Launchpad after the start of the project, reducing the frequency of the fluctuation of BNB. Since February since the operation of Launchpad, the probability of BNB single day more than 10% of the amplitude is about 20%, which is 10 days only 2 days may be dramatic fluctuations. You know in the previous, this probability is about 40%, which is over BNB in 10 days, 4 days may have dramatic fluctuations.

It should be, the Launchpad project has added new features to BNB, as a medium of exchange. While the new function means that BNB has a new value, the BNB price stability or even rise are positive, IEO has obviously favorable to exchange.

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