IEO and STO Development In 2019
The Blockchain industry has evolved a lot from its infancy. Bitcoin just hot 12000 USD mark, ICOs have begun to consider the projects seriously, and most importantly, a new funding method has entered the realm; it is called Initial Exchange Offering.
Initial Coin Offering’s Rise & Fall
An Initial Coin Offering, in some enthusiasts’ minds, is just an enhanced version of Initial Public Offering. ICO is simply a fundraising platform that allows crypto projects to raise capital via the Tokenization method. It’s done by lending a utility value to the token within the business’ value proposition. ICO paved the way for startup companies to waive off the traditional route of fundraising by employing ICO. Because of its efficiency and potential, ICO has seen a dynamic rise in the past few years. Shortly after Bitcoin hit its all-time high of $19000, the ICO Hype had initiated itself in the 2017 ICO Boom.
Emergence Of Security Token Offering
STOs resemble ICOs, except for the fact that an investor attains ownership over a company’s assets like stocks or bonds. STOs go in accordance with regulatory norms, thus waiving off the chances of counterfeit activities. The previous year saw a dynamic rise in the number of STOs globally and witnessed a steady increase concurrently as ICO sales decreased.
IEOs are making a boom in cooperation with exchanges
IEOs gained attention when more than 50 IEOs were launched this year, including a few notable exchanges such as Binance, Huobi, and KuCoin launched IEO. Moreover, Binance launched three IEOs in 2019 successfully and all the three were sold out in less than an hour. This resulted in massive attention towards IEOs from the crypto world. Day by day, a lot of exchanges are including the option for conducting an IEO and it is evident that there is a bright future ahead.
Advantages of IEO:
- Liquidity for projects.
- KYC is done by the exchange.
- Less marketing capital.
Although ICO rocked in 2017, 2018 and 2019 witnessed the constant rise of IEO & STO. They set an example to the world by showing that raising funds through cryptocurrencies can be safe and regulated, and still raise a great capital which is what the crypto community wants exactly.
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