An Initial Exchange Offering can be simply defined as a mechanism in which a token (or tokens) is put on sale via a cryptocurrency exchange. Here are the top 5 platforms for IEO.

The initial Coin Offering (ICO) craze around 2017/2018 has put so much capital in the crypto market intending to help developers and companies raise their funds using token release. However, lack of security and a massive amount of fraudulent cases have put investors' trusts at a boiling point. So many ICO projects were left abandoned and the investors' money was up in the air without any sign of return. Although many experts have been trying to discuss a better way to do ICOs, it is not an easy task to get the investors' trust back, hence the declining interest in any news of ICO even if it's been hyped by big companies or celebrities.

Now, crypto developers have started to shift their paradigm and have been trying to develop new ways investors can put their money in a more reliable platform or projects, with a better guarantee that their investment will be managed in a much better and more secure way. Then came the Initial Exchange Offering (IEO), an entirely new solution for investors and crypto developers to trust each other, and build something bigger in a better way.

Top crypto platforms for IEO (Initial Exchange Offering)

While ICO is a direct line between the token developer/company and public investors, IEO utilizes a "bridge" to initiate, manage, and monitor the supporting mechanism in crypto investments. New projects that are registered through an IEO will be put under a strict ion and due diligence process, company background check, legal analysis, as well as technological preview to make sure that investors have a complete picture of the projects and a good reason to support them. This is way more secure and transparent than ICO.

 

What Is an Initial Exchange Offering (IEO) Exactly?

An Initial Exchange Offering can be simply defined as a crypto mechanism in which a token (or tokens) is put on sale via a cryptocurrency exchange. Unlike ICO which puts the token developer as the sole seller, an IEO will add a neutral party to the equation, which is the crypto exchange. Arising from the lack of trust in ICO mechanisms, the IEO is conducted by the more reliable platform that investors trust for their experience.

In IEO, the exchange works on behalf of the token company, helps them initiate the token launch, conducts due diligence, and prepares all the technical aspects of the token launch where investors can monitor and examine the whole process, analyze the ROI, and calculate the long-term prospects of the project. The past few years saw the loss of trust in ICOs, so the IEO mechanism tries to give a better guarantee to investors that their money is in better hands. This new system is so popular that in 2019 it sees a boom period and created a new wave of crypto-mania.

There are at least 30 IEO platforms up and running right now, and so far they are doing good in keeping confidence among investors. This results in millions more cash flow into the crypto market, some overbooked platforms, promising new projects, and of course, new coins.

Public demand for new projects is in a good-looking uptrend, and competition among IEO platforms has been going healthy so far, giving way to innovations and new features that can strengthen the bridges that connect good projects and eager investors. But what makes a good IEO platform?

 

Characteristics of Good IEO Platforms

The 30+ IEO platforms are different in identity, developers, backers, and visions. Some of them perform well and offer great advantages, while some others are just doing OK and playing safe bets. If you are an investor or in the process of being one, it might be useful for you to know the top IEO platforms in the market, what they do and what they promise for the next decade or so, what their vision is, and how they would manage your money and give a positive return.

To build a better understanding of the characteristics of each platform, here are some factors to consider:

  1. Exchange reputation. Some platforms are new while some others have been in the game for years. Understanding how the exchange works, what they offer, and how the users' reviews will help you to gauge the reputation of an IEO exchange. Big names such as Binance and Huobi are considered the leading platforms for IEO with good track records. You can do your own analysis and comparative studies, of course. Keep in mind that better research can give you a better view of the market and exchange dynamics. So, DYOR to find the ones that you trust.
  2. Good UI/UX. There are quality platforms that promise better ROI or promising projects, but the display is awful. You could easily get confused by the menu, the operation flow, and all the redundant features. Some others only show very limited information and obscure their legal information. Choose the IEO platforms which have good or even great user interface and user experience (UI/UX). Choose the ones that give the easiest access, smooth workflow, and clear information even for a first-timer.
  3. Liquidity. Big names are usually reliable regarding liquidity, albeit this is not an absolute rule. Good liquidity gives a better moving room for an exchange, and in return, it helps them maintain public trust. IEO tokens are published on their platforms almost immediately after the release, so it is wise to make sure that you have no issues in buying or selling them.
  4. Security and Stability. Since the exchange is trusted to collect and manage public crypto funds, security is paramount. You wouldn't want to end up losing your money after putting it into a vague IEO platform with unclear mechanisms, vulnerable interface, and lack of stability. It is good to read technical reviews of the platform before signing up.
  5. Multi-coin support. IEOs are very popular for investors and traders to exchange their tokens. As such, it would be very useful for investors or developers if they can give multi-coin support. Since limitation is not for everyone, a multi-coin feature could become a feature that makes a platform stand out.

Based on some considerations above, here are the top 5 IEO platforms that might interest you:

 

1. Binance Launchpad

Some platforms build the IEO technology based on a launchpad system, a collective feature that houses the IEO mechanism. With the goal of helping creators and crypto projects meet their investors or backers, pioneering platforms like Binance Launchpad have helped the community to kickstart their ideas and meet in a more beneficial, economical way.

Launched in 2017, Binance Launchpad has been successful in putting great projects into the market and helping investors to connect with the projects in a productive way. Some of the notable successful IEO projects that were published on Binance Launchpad are Matic Network token (MATIC), BitTorrent, Fetch AI (FET), and Bread (BRD).

Now arguably the best IEO platform in the market, it is backed by the crypto exchange giant Binance and is incorporated into the BNB token system. Other than that, it has access to hundreds of other token projects that are up and running. To handle the overwhelming demand, Binance Launchpad had to put out a lottery system so that investors have equal opportunities to participate.

As for features, it has all the greatness of the Binance ecosystem. With a great UI/UX, Binance Launchpad supports multiple languages and compatibilities, helping even those who are new in the crypto world to get into the market and learn the basics first.

 

2. Gate.io Startup

Gate.io has achieved its net positive average profitability in April 2020. Its Startup IEO platform gives a special treat to investors, which is the opportunity to purchase blockchain assets at discounted prices. To diversify services, Gate.io offers these main categories:

  1. Initial Exchange Offering (with red label), a platform to launch a new crypto or blockchain project, for investors to invest in.
  2. Non-initial Exchange Offering (with blue label). Some existing projects that need additional funding.
  3. Discount offers (with orange label). Gate.io also makes it possible for investors to purchase major coins like BTC, ETH, and XRP at discounted prices of up to 20%.

 

3. OK Jumpstart

Are you looking for quality blockchain projects? OK Jumpstart has good liquidity, high-quality standards for projects, top-notch exposure, and a sophisticated token listing system that exceeds the expectations of many analysts.

OKEx, the developer, specifically controls the liquidity and capital flow based on the market psychology and sentiments. It offers a subscription scheme, but to maintain control, it comes with an allotment to avoid oversubscription or over-demand. A brief 30-minute window is introduced just before every IEO launch, and it closes once the quota is met. After that, an investor must hold a minimum of 500 OKB (OKEx native token) for seven days or at least 3,500 OKB of the current time frame before the token sale. The more OKB an investor has, the more allotment amount they get.

So far, this strategy has brought OK Jumpstart to a -20% average ROI as of April 2020, which mostly came from negative price actions due to the bearish crypto market. Yet, the average all-time-high ROI on its IEO has reached a whopping 570% so far. Not too bad, is it?

 

4. Bittrex IEO

There's no unique or particular name for Bittrex IEO, but its richness in security features, scalability, infrastructure, and streams of reliable information has been proven smart enough for investors to put confidence in it.

Some major projects that were hatched in the Bittrex IEO are RAID Project and VeriBlock tokens which were sold out just in 10 seconds. Since it doesn't have an exchange coin, all the payments and purchases are conducted using Bitcoin, making it more accessible to everyone in the crypto world. On the downside, however, is that Bittrex doesn't have a fairly distributed launching procedure.

In order to get a countable IEO, you must move fast and secure the initial queue spots to make purchases. This could be a bit frustrating for newcomers, but once you understand its advantages, you would love how they build quality products and maintain streams of great projects.

 

5. Huobi Prime

Introduced by its holding company Huobi Global in May 2019, the Huobi Prime IEO platform has been a good subject in crypto IEO conversations today. It is built on one of the top-trading platforms by volume and is working on some of the most ambitious crypto projects to date.

One of Huobi's highly-competitive features is called Direct Premium Offering (DPO) which hosts standout advantages as follows:

  1. Strict and rigorous project screening mechanism, sorting in only premium, potentially big-buck projects to launch.
  2. All purchased tokens can be traded right away into Huobi Token, with full access to its exchange.
  3. Equal opportunities for all crypto enthusiasts, with a $1,000 cap on a single purchase of Huobi token (HT).
  4. Tiered price limits to mitigate fluctuation during the market opening.

These points have given Huobi clear advantages in terms of innovation, IEO options, and market mitigation. Playing in the Huobi ecosystem will likely bring you to various possibilities in tech innovations, crypto investment, as well as blockchain breakthroughs from time to time.

Tell us what you want to find

The average ROI of IEOs varies every year. But to put on a bigger picture, here's a list of the best-performing IEOs:

  1. Sero (SERO) – Gate.io Startup
  2. WazirX (WRX) – Binance Launchpad
  3. Matic Network (MATIC) – Binance Launchpad
  4. Go With Me (GMAT) – Gate.io Startup
  5. HyperDAO (HDAO) – OKEx Jumpstart
  6. Reserve Rights Token (RSR) – Huobi Prime
  7. ROAD – Binance Dex
  8. BitTorrent (BTT) – Binance Launchpad

In conclusion, if you are interested in putting your investment into an IEO project or putting your project up for crowdfunding, getting on top platforms like Binance and Gate.io can be a good choice. They have good liquidity, good utility, and of course, the overall mechanism. IEOs provide a good opportunity to everyone who is interested in leveling up their game in crypto finance and incubation. Despite some setbacks and limitations, the IEO technology has shown a good prospect for future play in the crypto market. Do it right, analyze it wisely, and you can be a part of the game-changing innovation.