Part 17 → A Series on the Future of Cryptocurrency
The Initial Exchange Offering is a new approach to crypto-banking that is slowly catching the interest of ICOs and traders across the world. This new system provides a different type of exchange where the exchange acts as middle man between projects and contributors. Currency is sent to an account on the site and distributed appropriately. Is this approach a good idea for ICOs and traders? There are many in the crypto-world that see the potential in this system and encourage others to get on-board.
So why should we be so excited about these Initial Exchange Offerings when they sound like they could be a little more restrictive?
This two-way system brings a sense of control to proceedings that is essential in a number of ways. This new IEOs can offer the following:
a) greater security for users
b) improved transparency compared to previous approaches
c) a fairer system that can benefit those that are new to the game
d) the sense that this is a reliable banking system
Security is already a massive issue in the crypto world thanks to all those that want to scam the little guy out of their investments. ICOs open and fold in an instant after conning people for investment. Traders take advantage of systems. With the IEO, there is now a change to help eliminate those scams and any one-sided trades that take advantage of people. The best IEOs will provide access to the most reliable, proven companies and secure trades.
A fairer system for newcomers
There is also the idea that a new IEO may provide a wider variety of options for new traders. Issuers will be able to trade with more freedom and transparency with more potential users. There is also easy access on the side of the new user. This means newcomers can test the water with greater ease and see what is out there. This new power to the little guy also means that the whales might not get quite so bloated any more.
There have been success stories already with these IEOs
Binance Launchpad has proved that it is possible to be successful with IEOs. Companies can place their product on the platform, enjoy all the perks and become successful at the same time. One of the most famous success stories in this switch to the Initial Exchange Offering is GIFTO. This was the very first project on the Launchpad. The idea here is that the platforms 20 million users can send each other virtual gifts. There is nothing much that is too revolutionary about the company, but they will go down in cryptocurrency history as pioneers in the IEO world. Their success is sure to encourage many over to make that leap into this new approach.
Part of the reason for Binance’s apparent role in this future success is that they understand all of those benefits mentioned above. They want to improve security for users by implementing a strong application and auditing process. Their structure also means that there is that fairer, more transparent exchange between users. Finally, their reputation in the market means that they keep that sense of integrity and reliability.
Another interesting development in IEOs is the idea that Paraguay wants to get in on the act. There have been rumours that the South American nation is keen to be the leading crypto-market on the continent. The plan is that the government will work with the Blockchain Technology Foundation to create the largest cryptocurrency mining centre in the world. They aim to make a start with pre-sale and an IEO.
What is the future for the IEO?
The Initial Exchange Offering is still a pretty new phenomenon. However, there is no doubt that this will continue to grow with time. There will be some miners and whales that worry about this sense of “fairness” and that two-way system. Others may worry that such a strict approach takes users away from the original ideals of cryptocurrency. On the other hand, this new approach could bring in a whole new group of users. It might help to make crypto-currencies and exchanges more appealing to the wider market. With time, the IEO may change the face of crypto-banking for the better — both at home and further afield in South America.
Spiking’s Public Sale will be offered as Initial Exchange Offering on Kryptono Exchange’s Xpad platform: https://xpad.kryptono.exchange/ieos/spiking.
Phase 1 of the Public Sale will take place on December 12th, 2018 at 6pm (GMT +8).