Where is the future of cryptocurrency exchanges? Can IEO be a lifeline?
HONG KONG / ACCESSWIRE / March 5, 2019 / In recent days, the IEO carried out by the Korean exchanges have attracted the attention of the majority of cryptocurrency players. In a bear market, IEO is like a shot in the arm, bringing a new bright color to an otherwise placid currency. It also allows the Korean market to move independently of many global exchanges.
But what exactly is IEO, when will it be available to us? What impact does the IEO have on global exchanges and even on the cryptocurrency? Coineal investor Aaron gave his answer during an interview recently.
As it is known to all, IEO has been very hot in South Korea recently, which not only shocked Korean retail investors and investment institutions, but also enabled the global trading market to find a new direction in the bear market.
"First, IEO is not a new thing. If you trace the history of IEO, you may already have an answer as early as 2018. The BNB was launched by Binance in early 2018, which was the first platform token. And the strict definition of the platform token is what we call the IEO today." Aaron said.
As for the relationship between IEO and BNB, Aaron continued, "The IEO we are talking about now is the first sale of tokens through the exchange. This definition is the same as the logic for issuing platform token at the time. The BNB was launched in line with this logic, relying on the Binance exchange to launch the BNB for the first time. So in a strict sense, the platform token is a subset of IEO, and the real IEO is not limited to the exchange listing token itself, but also the token issuing by any other project."
Aaron expressed his opinion on IEO affects the future of the cryptocurrency by listing a few reasons. "I think the current IEO that is prevalent in the Korean exchange is a big opportunity for the global cryptocurrency followers, and it is also a process of reshuffling the exchange."
The following are the key reasons pointed out by Aaron.
First and foremost, the current global financial market is not very prosperous, so the surge of hot money is not only in the cryptocurrency , old users are stuck, new users cannot enter, if there is no IEO, the cryptocurrency market will be depressed a long time.
In the short term, Nasdaq and China's stock market have had a big short-term recovery. For such fluctuations, it is not good for the cryptocurrency market. So, for the exchange, how to re-create new benefits and values for our users in the bear market becomes very important. And after the emergence of IEO, it is an effective way to make all our exchanges silent user activation.
At present, whether it is an exchange or a cryptocurrency market, all of them are in a bear market. In the previous wave of the bullish tide of the token price, there are countless new institutions or retail investors pouring in. They buy some coins at the high level, and at the current price, these new users have basically been lock-in.
Their dilemma: there is no hope of closing out in a short time.
So for this part of the user, there are no more than two options, the first choice is cut lose, the second choice is keep waiting. No matter which one, it is a silent loss for the exchange.
For exchanges, how to effectively make these users become active is especially important. According to the current results, most of the Korean IEO projects have already achieved several times or even ten times benefits, and the BTT made by the Binance has also achieved multiple benefits. Therefore, if the exchange can maintain a strict review level, the new IEO project will create a way for those users to recover the initial capital or even make a profit.
Aaron advised to guide the user to stop loss and use this part of money for the new IEO projects on their platform.
According to the previous trend, the first wave of IEO projects in China will have a greater chance to achieving a higher return on investment. Most users can not only recover the initial capital, but also earn more.
"In summary, I think that IEO is a very big opportunity for the exchange." said Aaron.
As for how to ensure that all exchanges are strictly scrutinized, Aaron answered: "Because the exchange user's acquisition cost and maintenance cost is very high, the exchange's current main profit is based on the transaction commission. If it is not strictly scrutinized, it will lead to the collapse of the subsequent token price, thus affecting the platform users and causing poor reputation. Therefore, if there is a certain scale of the exchange, IEO will be opened after the strict scrutinized of each project, in order to avoid the loss of users, and to create a good reputation for the exchange."
"The IEO scrutinize requires a complete set of processes and risk control standards. Such due diligence requires large manpower team, which inevitably increases the initial operating costs of the exchange. At the same time, the quality of IEO has a lot to do with the number of users of the exchange. Many small exchanges have no high-quality projects, and the operating costs cannot support them, which will inevitably cause some small exchanges to close." Aaron said and maintained that it is a challenge and reshuffle, an opportunity and a challenge for the exchange.
There are some people think IEO is not what the exchange needs to do. But Aaron doesn't share this view. He believes that IEO is not only within the scope of the responsibilities of an exchange, but should be one of the most important functions of an exchange.
The prototype of exchange is derived from the traditional financial stock market. The biggest function of the traditional stock market is to help companies get financing or IPO.
When the token exchange imitated the traditional financial system, intentionally or unintentionally, copying the exchange part separately, but did not copy the function of IPO. This has caused exchanges to remain in a state of lack of function, which has allowed many projects to have the opportunity to falsify, thus affecting the environment of the entire market.
The arrival of the bear market is also related to excessive scam token, and the main reason is that the exchange did not carry out IEO.
From this perspective, Aaron maintained IEO business is not redundant, and should be a standard part of exchanges.
His company has already joined an exchange, preparing for the first project to be launched soon, the KTN project, and they will make a 2.0 extension for IEO.
"What you see is a single token, but we will link more than a dozen or even dozens of exchanges to launching the same token. In the future, it will trade on all our exchanges, and we expect to jointly promote this token, we call it a platform token. Only in this way can we compete with foreign exchanges. At the same time, our first token KTN is still a Singapore project with entities, and there are already many downloads in Japan." said Aaron.
"Joint endorsement + entity support, we are very confident about the release of this project. It will be online on March 6th and all friends are welcome to follow us. Let us witness the future of the cryptocurrency market together." Aaron shared his vison at the end of the interview.
Contact: info@globalnewsonline.info
SOURCE: Coineal
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https://www.accesswire.com/538060/Interview-with-Aaron-the-investor-of-Coineal-Exchange
