Initial exchange offering (IEO) fever is taking the 2019 crypto world by storm, much like initial coin offering (ICO) fever did back in 2017. With ICOs all but dead, or so heavily regulated they’re impossible to launch, I.EOs are proving crypto projects with a new way to raise funds and pump their tokens to the moon However, not all crypto exchanges are built the same, with the majority of IEOs fading out in a matter of weeks.
There are a handful of exchanges that break the trend, but Binance stands out as the one exchange that appears to defy all odds and lets IEOs remain profitable and popular for months.
What is an IEO?
There is very little difference between an IEO and an ICO, they’re both essentially the first time the coin goes on sale to the public, but with an IEO it’s done through an exchange. Once the sale is complete, the token or coin usually receives a number of trading pairs on the exchange it launched its IEO from, unlike an ICO where coins and tokens had to apply to exchanges and pay additional listing fees.
Binance Reigning Supreme
IEOs coming through Binance often emerge from the Binance Launchpad. In order to take part in Binance IEOs, investors must hold BNB – Binance’s native token. Based on how much and how long you’ve held it for denotes how much you can get during a project’s IEO – meaning that you’ve got to be dedicated to the project in order to stake your BNB tokens and miss out on the next IEO that comes along. This in turn encourages long-term hodling of the new tokens, as well as trading and use, rather than purely speculative buys. This is one huge edge Binance has over its competitors.
Breaking the Market Trend
Out of the other top exchanges offering IEOs, Binance has a whopping median return of 200% on IEOs. Gate.io comes in second with around 50% with Huobi foundering around the 25% mark. Bitforex, Bittrex, Coineal, and p2pb2b are all recording negative ROIs on their IEOs, meaning that the exchange you’re investing from makes all the difference.
Back in February, we saw Fetch.ai sell out its $6 million IEO in 10 seconds over in Binance. If this is anything to go by, Binance could be the hottest exchange around when it comes to bagging a nice ROI when investing in IEOs.