Endless ICO: This time it’s IEO again, and the currency circle is worried about financing | irem derici, romance of the little forest, bola online88

He said that.

Fraud seems to have become a legitimate business,

It's incredible.

Hidero Okuda "The Age of Unreason"

The most difficult thing in the currency circle is not to follow the trend, but to counterattack.

Data show that in February this year, the amount of ICO financing fell below US$100 million, to only US$56 million, a year-on-year decrease of 95.78% compared to the same period last year.

Since the Spring Festival, when major mainstream currencies are still languishing at low levels, the platform currency BNB's rise against the trend has brought Binance, one of the world's largest cryptocurrency exchanges, back into people's sight.

This is also thanks to the launchpad of Binance platform.

As Binance’s blockchain asset issuance platform, Launchpad launched two projects, Gifto and Bread Wallet, in 2017, but also fell silent last year when the market was sluggish.

When Launchpad returned this year, it also launched BitTorrent and Fetch.AI, making the IEO concept a hot topic for exchanges to compete for again.

IEO is the exchange's public sale of tokens, the full name is "Initial Exchange Offerings", that is, the exchange directly helps projects go online to raise funds and sell their tokens.

Since the issuer itself is the exchange, IEO does not need to raise funds from the public, but can be listed and traded directly on the exchange.

In many countries with strict ICO regulations, IEO has become the best alternative.

The advantage of IEO is that while the exchange conducts more professional due diligence on the project, it can also suppress technical risks such as phishing and malicious attacks.

In addition, the exchange’s own users, funds, and traffic can also help some outstanding start-up projects raise funds more efficiently.

Weiss Ratings believes that allowing exchanges to review crypto projects to be funded can effectively protect the safety of investors.

Therefore, IEO will be a new hot spot in the cryptocurrency market.

However, IEO is not perfect.

Binance founder Changpeng Zhao once published a blog post explaining the problems existing in the IEO process.

A small group of people will hold a high proportion of tokens, which may affect the trend of currency prices and involve currency price manipulation issues.

Once the currency price rises, this group of people (possibly the project team) will have room for direct arbitrage, which will directly affect the income of retail investors.

The source of this IEO boom is BitTorrent, which was launched on Launchpad.

BitTorrent was once named "one of the four new technologies changing the development of the Internet" by the US Fortune magazine.

It is understood that BitTorrent is a P2P file transfer protocol built on the TCP/IP protocol.

Its characteristic is that it will not reduce the download speed as the number of download users increases, but will speed up the download speed.

It is this advantage that allowed BitTorrent to quickly occupy the dominant position in the market.

According to the Canadian Network Broadband Management CorporationSurvey data from Sandvine in October 2010 showed that the BitTorrent protocol accounted for more than 50% of the average daily upload traffic in North America.

Due to the lack of a reasonable business monetization model, BitTorrent began to decline.

However, the encryption industry is very fond of BitTorrent.

In addition to Tron’s successful acquisition of BitTorrent for US$140 million, it also included NEO, which bid up to US$170 million.

However, Justin Sun, who has always been known for his "hype", this time it is difficult not to make people suspect that it is another seemingly lively "one-man show".

In addition, Jed McCaleb, the founder of Stellar, once bluntly said that Tron is "garbage".

He believes that the technical aspects of these projects do not have much room for application.

Many people also suspect that the BTT project jointly launched by Binance and TRON is a conspiracy.

After completing the acquisition, Justin Sun not only personally supported BitTorrent many times, but also vigorously promoted the application scenarios of BitTorrent;

Zhao Changpeng also recognized the decentralized nature and huge user base of the BitTorrent project.

Regarding the listing of BTT on Binance Launchpad, Justin Sun explained that the BitTorrent token has native TRC-10 compatibility and will therefore only be launched on Binance Launchpad.

Binance announced: "BitTorrent's new token BTT will allow BitTorrent to introduce a reward mechanism to improve file sharing activities."

The ultimate goal of this action is to connect "BitTorrent's P2P network and the TRON network together."

In fact, the BitTorrent project has similar characteristics to Xunlei’s Wanke Cloud project.

In addition to the Token incentive mechanism, BitTorrent is actually still a network platform for content distribution.

Once an incentive mechanism is added to a content distribution platform, it can easily become a pure hype platform without practical significance.

Kenta Iwasaki, chief technology officer of Perlin, a Singaporean startup that focuses on decentralized computing sharing protocols, said in an interview that they do not believe that BTT can distribute the rewards they deserve to each user point-to-point.

"In the end, they may still use a centralized approach."

BTT opened crowdfunding at a price of US$0.00012 on the day it was launched. In less than 15 minutes, 60 billion BTT was snapped up. Subsequently, after BTT opened trading on Binance, the price soared nearly five times.

However, the price of BTT has fallen back and gradually stabilized.

In fact, as early as the end of last year, the Korea Blockchain Startup Association (KBSA), the Korea Blockchain Industry Promotion Association, and the Korea University Cryptocurrency Research Center jointly announced IEO guidelines.

The guidelines include technical information, development plans, legal compliance, salesThe total score is 1,000 points for the review of party protection and safety.

Blockchain projects with a score of less than 700 points can obtain a sales quota of up to 1.5 billion won (equivalent to about 9 million yuan), while projects with a score of more than 700 points have no limit.

As Binance quickly seizes the IEO market and even carves up the ICO market, major exchanges are beginning to become restless.

Bittrex International, a subsidiary of the American cryptocurrency exchange Bittrex, announced that it will launch an IEO project on March 15.

The first IEO project will list XRD, the token of Korean startup RAID.

However, because no relevant information about its token issuance company ONERAID PTE was found on the official website of Singapore’s regulatory authority ACRA, there is also no more personal information about the founder and team.

Currently, Bittrex has announced the termination of cooperation with the RAID project.

In addition, according to OKEx CEO Jay Hao's Weibo, OKEx will soon launch the utility token sales platform "OK Jumpstart" product to support truly high-quality projects and early entrepreneurs.

Jay Hao said that as early as July last year, OK Open Platform had thought about and practiced this model.

Exchanges such as Huobi, KuCoin, and ZBG will also launch relevant publishing platforms one after another.

Although many people are optimistic about this new financing model, there are also risks involved.

The essence of existing IEO projects is to increase the credit endorsement of the exchange and increase the trustworthiness of the project.

However, laws and regulations still do not have clear criteria for judging projects, making it essentially difficult to ensure the quality of IEO projects.

Kim representative of USEB, a Korean blockchain consulting and marketing company, said in an interview that it is difficult to attract successful investments just by selling potential projects through IEOs through exchanges.

In addition to financing, value protection policies for subsequent investors should also be introduced.

In addition, Fetch.AI, which has been launched on Binance, and Celer Network, which is about to be launched, have both raised funds.

So, in the future, can projects that have no value themselves win the opportunity to be listed on exchanges through some "special means"?

We don't know.

In this way, it can easily become a game jointly written, directed and acted by the project party and the exchange.

Everything is under their control.

(Source: District 45)