What do you Think about IEOs?

Dubs confirm?, Yeah it sure has some Holes, but "Officialy" Binance sais its 10% and 30k USD

This is a normal deal of an IEO:

Of any amount raised in a public sale, you have to provide DOUBLE on both sides of the trading pair.

So, raised $2 million? Give $4 million USD and $4 million BTC.

The exchange keeps it for months to years for market making by contract, automatically making your token a security (if it wasn't already due to publicly displaying intent to list on an exchange).

And then there's the IEO provider's fees as well.

It's a cancer. It's destroying the industry. The SEC will reign down on IEOs and if we're lucky crypto markets will have had another bull run before then.

Correction in the example: I meant give $4 million BTC and $4 million in your token.

My opinion is that IEO is an unnecessary term. It's just an ICO.

With wich IEO Did you worked with?

An IEO is basically an ICO from an Exchange

Yes. No need to state the obvious.

Also normally a token cannot have more than about 3% circulating initially, specifically so the exchange can wash trade it at any price they want (that's how they get their CEOs to go x10 on listing for a good while at high volume before dumping).

The public IEO buyers get duped and fucked especially if they think the token is worth holding long-term because they like the project.

The project takes the most financial risk since they have to work with chinese exchanges directly who control almost all of their funds for several years. Nothing bad ever came from that /s

The private investors take much less risk because of the crazy good private sale deals they get (often better than publicly stated).

The only real winner is the exchange.

The house always wins. And in the long run, everybody else loses.

But no let's keep giving exchanges money because "free gains for my $100 ieo ticket".

How are people not seeing this is the next big mainstream thing that will take crypto sky-high and cause the industry's next big panic sell as well?

I don't want to reveal my identity but I am in a chat with several founders and executives who either have done their IEO or are scouting for an exchange to do it on (since exchanges managed to kill ICOs through stealth marketing and wash trading IEOs post listing), and they shared terms and agreements. Every project founder knows it's a joke and a scam, but they do it anyway because it's the only way to raise money in this industry anymore.

Why Not Make an IEO and lateron a Second Coin for Micro Transaction (Like NEO and GAS) And use that As a Main Value Gainer?

What Exchanges do you Talk about? Okex Huobi or the Really big ones like Binance?

I think user talks about all of them faggot

Bump

Most new projects won't do this because they know a dual token model is much more likely (if not bound) to fail. It's already difficult for a project to manage one coin, let alone two.

Also securities laws get really weird about it (one coin generates other coins, for what purpose? to battle inflation of the "main coin"? if it's related to scarcity then it's related to speculation, and if the token model is built around expectations for speculators then it's a security).

NEO, Ontology, and Vechain have shown us what dual token models can do to a project, and it's not pretty. And these guys have way more money than any fresh project.

I've seen "proposals" (more like extortions) from Binance and Huobi along with some others I won't name as it might make me identifiable. I don't remember seeing one from OKEX, but I've dealt with OKEX before and they are even more ruthless and extortionist than Binance, so I don't think their deals are any better. They basically try to contact projects every few months to see how they can make up some bullshit issue and charge service fees to "have their developers fix this to adapt to these unforeseen changes".

I'll also mention Kucoin contacts projects regularly after already being listed and makes threats to delist if they don't wash trade (i.e. pay the exchange over time in trading fees generated by wash trading) or to pay them to add another trading pair, and other scummy shit.

People would hang me if they knew I'd say this but being so deep into the cryptocurrency sphere, "buy bitcoin" is becoming my mantra more and more every day. Exchanges have grabbed the altcoin industry by the balls with dumping on users, projects, defrauding companies. 99% of the coins will crash. There are definitely some legitimate ones out there but you'll have to know a lot about development to recognize who are legit and who are full of shit.