The presence of launchpad platforms is commonly known among novice and seasoned traders, as well as individuals whose activities or hobbies are closely tied to cryptocurrencies. Launch sites on cryptocurrency exchanges are the most popular way to conduct a primary token sale today. This process is called IEO.
Major exchanges hold IEO Launchpad platforms like P2PB2B, and new project coins are added to the listing as soon as the sale is completed. Despite the fact that large cryptocurrency exchanges choose promising tokens for IEO, investors still risk their own money because no one can guarantee that the value of a digital coin will increase after the token sale.
What Is an IEO?
IEO refers to the first placement of tokens, in which a cryptocurrency exchange acts as an intermediary. The site does an audit on its own, verifies the technical aspect of a new project, and assesses its potential. If the results of the work are satisfactory, the exchange will “promote” the project by beginning to sell tokens.
What are the benefits for potential investors:
- Because the exchange’s reputation is crucial, it undertakes a comprehensive selection and verification of the project, there are little chances of falling victim to a scam (fraud);
- The technical side of participation has been simplified: you can buy tokens directly from your exchange account;
- Because the platform has its own interest, listing is faster.
The key benefit of IEO for developers is access to the exchange’s client base, and thus potential investors.
What Are IEO Launchpads?
IEO Launchpad is a platform for the initial coin offering of promising cryptocurrency projects that are in the initial stages of development. More and more exchanges have started creating IEOs. One of the first in the line was Binance, which released its Binance Launchpad IEO platform. Now, over time, the number of such launchpads has grown.
What Are the Advantages of IEOs for Projects and Investors?
Instant access to vetted investors willing to spend their crypto assets is an obvious benefit of IEO for businesses seeking funding. Projects can blend into an existing user base, just like firms that launch their initial public offerings (IPOs) and are licensed by the Nasdaq when they go live to shareholder meetings.
Exchanges also receive marketing and make a large profit from listing fees, which vary depending on the size of the platform. Exchanges also gain from attracting new users who are interested in a specific IEO. These users may want to stay and become regular customers after making an account to participate in the IEO.
IEO participants are less risky investors. Instead than dealing with many wallets on various blockchains, they can simply open an account on the exchange and purchase tokens.
What Are the Best IEO Launchpads in 2022?
As of 2022, there are many IEO Launchpads. They are all different and some are definitely better than others. It should be remembered that most exchanges have a monetary incentive to launch as many IEOs as possible, since they make good money from it. So now the important question is which IEO platforms are the best?
On p2pb2b, there have already been various IEO initiatives. On the exchange’s official website, you can learn about existing and upcoming IEOs. IEO takes place on the exchange, which eliminates the requirement for the project to find a listing platform. The token is sent to the exchange where the funds were raised right away. This IEO benefit saves the project a significant amount of money: listing on huge platforms can cost tens of thousands of dollars.
- Binance Launchpad
In 2017, Binance Launchpad was one of the first IEO platforms to start. Binance Launchpad is one of the most popular token launch platforms. It is backed by one of the world’s most important exchanges. With each token sale, Launchpad attracts a large number of investors because to cutting-edge technology (capable of processing over 1,400 orders per second) and high-level collaborations. As a result, liquidity is rarely a problem for Binance.
- OK Jumpstart
OKEx’s OK Jumpstart is a fantastic platform for high-quality blockchain initiatives. It provides a high-quality, liquid market as well as the chance to list tokens on one of the world’s most prominent exchanges. To avoid oversubscription, OKEx implemented an allotment system. As a result, a 30-minute subscription window opens prior to the IEO, which shuts once the maximum limit is met.
The Best Sectors to Invest in
Many people are concerned about increasing equity in 2022. There are numerous investment alternatives available. Securities investing is becoming increasingly popular. Buying exchange-traded funds (ETFs), which consist of a portfolio of shares of strong firms, is one way to invest in securities. An ETF is a stock exchange-traded fund whose shares represent the average value of an entire portfolio of assets.
If you want to invest for the long term, gold is an excellent way to store money. And, in general, this asset has proven its dependability for centuries. As a result, it might be deemed a potential investment direction in 2022. Participation in initial public offerings (IPOs) has grown in popularity over the last decade. High profits on such investments entice stock market players.
Many of the issues that plagued the ICO model are addressed by IEO platforms. The crowdfunding process is made much more efficient by a high degree of trust in popular exchanges, while the risk of project failure still exists and must be considered. However, by increasing the security of blockchain fundraising and shielding investors from scams, the IEO system was important in bringing the long crypto winter to an end.
Source: Plato Data Intelligence: PlatoData.io