Amid the current bearish market, cryptocurrency exchanges like Bittrex are walking on a new trend of launching its first Initial Exchange Offering (IEO) on behalf of a blockchain project called RAID. As announced on Monday (March 11, 2019), it would be the first of its kind for Bittrex where it is hosting RAID (XRD) token Sale on its platform via a new concept called Initial Exchange Offering.
Per the latest announcement, Bittrex will launch IEO of RAID project which is a blockchain-powered gaming data startup from South Korea. Accordingly, RAID’s 17 billion XRD token is already delivered to Bittrex exchange with an aim to raise $5.95 million. The exchange is deciding to offer 1 XRD at the cost of 10 Satoshi, whilst setting a minimum purchase of $10 and a maximum of $20,000. The IEO of RAID’s XRD token will begin on March 15, 2019, at 10.00 AM KST time.
What is Initial Exchange Offering (IEO)?
IEO or Initial Exchange Offering is a concept beyond ICO token sale (Initial Coin Offering). unlike ICO where the prices of the token reach sudden sell-off initially, experienced manipulation and contain less security level, IEO is led by the registered cryptocurrency exchange. In this process, a token sale of a project will be hosted by exchanges such as Bittrex, KuCoin, Huobi, etc, on behalf of the project rather than the project itself. By doing so, the exchange ensures higher security level and prevents price manipulation. IEO is an advanced method of conducting the token sale and raising capital with the help of cryptocurrency exchange.
Is it Similar to Binance LaunchPad?
While IEO carries a similar approach that Binance’s launchpad is offering – it doesn’t come in a row of competition for Binance.
As well as that, Changpeng Zhao (CZ), the CEO of Binance Exchange is long time believer on cryptocurrency’s global adoption – as seen on his profile, CZ took to twitter and made a confident statement on Bittrex’s IEO announcement. He adds ‘Glad to see more joining the club’;
Glad to see more joining the club. We firmly believe blockchain fundraising is the killer app. Let’s use it to help our entrepreneurs and #BUIDL our #crypto industry, and other industries after that. (happy to promote a peer to grow the industry) https://t.co/DVbZRAEB7n
— CZ Binance (@cz_binance) March 12, 2019
In a similar tone, CZ responds to a comment that curiously questioned him his interest to list the project on Binance; he says;
The race to see who lists first is overrated, and short term focused. Exchange users are very liquid. They move around all the time. We just focus on improving our products and services for the long run.
Bill Shihara, Bittrex’s founder is also confident on exchange’s security level – thus ensuring its global customer stating that ‘they will have peace of mind’ because the project is backed by Bittrex International trading platform. In similar regards, he says;
“We are committed to increasing adoption and moving the blockchain revolution forward. The ability for projects like RAID to innovate, advance, and promote the gaming industry on our platform is a game changer for all involved,”
To count down the project’s IEO, you can visit here – https://international.bittrex.com/Market/Index?MarketName=BTC-XRD
What’s your view on Binance’s launchpad and Initial Coin Offering? Share your thoughts with us. What do you think of project’s interest, will they prefer Binance’s launchpad over preferring other exchanges with IEO concept?
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com