Binance and KuCoin Are Taking Foreground by Using IEOs

The ICO business might have reduced, but there is yet fundraising process running in the blockchain domain. It is currently being going on vis the Initial Exchange Offerings (IEOs). So, IEOs are earning blockchain companies millions in the year 2019.

Since the 2017 inflation token sales have not closed completely. They’ve plainly switched names.

Two anonymous sources stated to CoinDesk that certain exchanges refused to list their tokens only if their startups paid substantial fees, in different formats based on the transaction. They also said these fees varied from 10 percent of the equity of the startup, in addition to a percentage of the token’s global market cap, i.e., more than $1 million for marketing purpose.

The anonymous source further added that exchanges are watching to confront with Ethereum, that has been principally utilized for generating new assets by far.

Launchpad, the ecosystem’s most prestigious IEO platform that started in August 2017. The Launchpad is basically a part of Binance. But in January 2019 it resumed with the BitTorrent contribution which facilitated $7.2 million in sales along with the exchange’s native BNB token.

From that time onwards four new projects are released by Binance. Even Binance is moving forward with a minimum one per month since it concurrently forms a decentralized exchange (DEX).

The source stated of the Malta-based exchange Binance, “Basically they are going after the ERC-20 [token standard].” The source also added, “They want you to actually issue a Binance token [BNB], on top of the Binance chain instead of an ERC-20, in order to get into the [decentralized exchange business].

Also, KuCoin which is the global competitors are offering IEOs, but its format differs.

KuCoin’s Spotlight section will release its second IEO on May 28, stressing the CHROMA token declared by ChromaWay, the software-as-service startup. Last year it had accumulated $11 million in a private token sale. CEO of KuCoin, Michael Gan reported to CoinDesk that the exchange’s first IEO acquired $4.2 million worth of crypto in April.

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