The cryptocurrency markets have seen a lot of changes since the inception of Bitcoin in 2008. Initially, duplicates of Bitcoin were created, then an era of smart contract platforms unleashed a whole new space for Initial Coin Offering. Numerous offerings were issued during late 2016 and 2017, which was part of the reason for the bubble formation in 2017.
However, the SEC in the US and other regulators over the world started to crack-down on the process to curb this dubious crowdfunding process. Nevertheless, start-ups have found a new way of raising money on the blockchain – Initial Exchange Offerings. Earlier, the new ICOs had to pay a listing fee to get listed on Exchanges. Now, they are released on specific Exchanges itself.
How Exchanges are Planning to Increase their IEO Business
More than 150 IEOs have released or due for release in 2019. The Exchanges have helped the teams raise to $1 billion through the IEOs. To further increase business, Exchanges like Bitfinex and Okex have started cross-listing their IEOs.
While Okex included LEO, (tweet)
UNUS SED LEO (LEO), the native @bit.ly/2X5dRLatoken, is now listed on OKEx. Please take note of the go-live schedule:
Bitfinex added the IEO and the stablecoin released by the sister firm of OKex as well. (tweet)
“OKB and USDK are making their way to Bitfinex! Trading for both assets will go live on Thursday, June 13th, at 10.00 AM UTC.”
Binance Coin [BNB] is also currently listed only on the Binance Exchange. Hence, if another popular Exchange decides to register BNB, the volume and price are expected to increase significantly.
Stablecoins Galore As Well
The ICOs are primarily driven by the initial speculative demand, which is similar to ICOs. Moreover, the inclusion of stablecoin on Bitfinex benefits USDK as Dovey Wan mentioned,
the cross-listing of
$OKB and $LEO is trading favor between OK and BFX, but the actual winner is $USDK, the newly issued stablecoin by OK The only metric for fiat coin’s success is market cap IMO, not how “stable” it is. fiat coin is a proxy for fiat on-ramp, for trading utility
The market capitalization of Stablecoins like USD-Circle and True-USD have increased considerably with their presence of Exchanges like Coinbase, Bittrex, and other OTC desks as well.
Do you think that strict regulations must be imposed on Exchanges offering IEOs? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com