For Initial Exchange Offerings, Liquidity is King
Also read: How Crypto Winters of Bitcoin’s Past Compare to Today Initial exchange offerings are big business: according to Inwara, IEO projects raised a cool $1.625 billion in the first half of 2019. Investor demand for initial exchange offerings also remains robust: the leading crypto Telegram channels, maintained by the likes of Coinidol, attest to this, as investors clamor to catch wind of pre-sale and seed rounds for projects that will eventually IEO on Binance or Huobi.
While the initial exchange offering brings benefits to investors and project teams, compared to the ICO, it is hamstrung by a flaw that is inherent to this fundraising model: often, there is little incentive for other exchanges to list the token. The most liquid token IEO to date, based on the number of exchanges where it’s listed, is also one of the earliest: Bittorrent (BTT), which launched on Binance last year.
