Forget ICO, Why IEO will be the future of fundraising?
There is a new hope in the sea of thieves, IEO is promising to be a much better fundraising tool than generic ICOs. With fraudulent ICO’s flooding the market in 2017 and giving crypto currencies a bad name, maybe we can finally imagine a corruption free crypto world. Sure, blockchain Applications (Dapps) will be the setting stone for this change, but until then, IEOs should take over the ICO trend.
IEO is a typical ICO but backed by an exchange. Big exchanges verifies the smart contract and the company background, before dishing out the product to the consumers. We must realize that for a while, blockchain enthusiast have to work with regulations to go mainstream . We are, maybe, fundamentally incapable of digesting a corruption free trade, and that’s the problem with implementing blockchain without a central authority. IEO solves the problem, well, at least virtually. We have always trusted exchanges with our money, so why not put our full trust in them?
IEO is a short version of Initial Exchange Offering. IEOs are limited to people who are a part of the exchange, and they ensure to do a full KYC/AML before listing a company on their exchange for a token sale.
Stock market vs IEO
IEO matches a lot to our generic stock markets, instead of central authority being the NYSE or the BSE, the central authority in IEOs are the exchanges which hosts them. Now, there are a few advantages and a few disadvantages to both. For starters, generic stock markets are legal, unlike the IEOs which are still in a dogma about their fate. Second, the stock markets trade in fiat currencies, dollars usually. Whereas IEOs work on cryptocurrencies, and it could get a bit tough to withdraw returns in fiat currencies in the coming time. While things may not be clear right now, we believe IEOs will clear the air a bit. With so-called next-generation token sales and fundraisers, we might just have the perfect new stock market we always dreamt of.
Some big players are entering the market.
Big exchanges have already started betting big on the IEOs, as their name carries a lot of goodwill. The plus to these exchanges is the volume of people already trading all their cryptos onto them. The top exchanges entering the market with their IEOs are:
The Giants and the top smart contract development company both realize that they had to take this step here and now, we can’t really be sure if this has been their plan from the start. But change is constant, and change is good. At least we are moving ahead of ICO speculations and reasoning for a product which sometimes is too good to be true.
Will IEO bring the next fundraising boom?
IEO is promising much more, much further, and it’s quite probable to bring the next crowdfunding boom. We realize half the world works on investing in new companies, that’s how the investment funds work. ICOs have made it clear, that the potential of investors is nothing short of a miracle, especially when they are in huge numbers. ICOs haven’t actually failed at any point of time, but the cons made it look like a typical scam.
IEOs are going to change that big time. It’s like a no other option for people as they already trust the exchanges with their money. Also, exchanges have a lot more legal formalities than some website fundraising through ICOs. Things are going to change and we should be ready for the next big boom to pump crypto investments. Make sure you don’t miss the IEO train while laying back and thinking of it as another scam.
