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IEOs are widen the gapping popularity among investors. | Source: Twitter
With the Rise of IEOs, Investing in Altcoins Can Be Brilliant
IEO: ICO With Perks?
The initial exchange offering brings a fringe benefits that previous ICO waves didn’t have: traders will know what the first exchange to list a fact asset is going to be. Other exchanges will be able to support IEO tokens relatively fast – once they’re tangible – but those doing the listing will be setting the basement market price. From here, other prices bequeath emerge; whether higher or lower, the first exchange will make the bulk of the initial trading fees on the new indications.
That, of course, would make a lot of sense. But the reality of the scheme is that exchanges have to provide a massive beadroll of cryptos to earn serious fees. Whether they charge the fees in the currencies themselves or charge them based on the bitcoin assay, exchanges need volume to make money.
It’s not just a matter of appearing more attractive: volume is where they procure significant fees. If billions flow through an exchange, then they’ve made hundreds of thousands or millions.
If this cooks every day, they can become rich.
The only way for it to continue to happen consistently is for there to continue to be a variety of assets to opt from. If exchanges weed through the masses of poor projects and laser in on projects that might provide some value to their investor, the next shake of token sales might make a lot more sense. New token allegiances will have some new nuance: you may not identical to a particular token because you didn’t have an account on the exchange that launched it, for example.
Swops Need New Tokens to Increase Volume
Unlike many of the ICOs that ran in 2017, exchanges have their job to keep in mind. The exchange offering model brings a new insight into the market; depending on who is doing the listing, the maquette may lend some credibility to certain projects.
People in the blockchain space have already proven their willingness to undertake a gamble. Indeed, the money is ready for the next token run. The main question is whether the new “IEO” spin will have a egregious impact or not. If so, what will it look like? Will a tokenized future emerge out of the next bull run?
If you’re wondering, the view makes us groan too. The blockchain might present several unique opportunities, but it’s not a fix for everything. One can only hope that entrepreneurs require keep this in mind as they approach the space in the coming months.
If you time your exits correctly, initiating in altcoins can be as lucrative or more than trading bitcoin. Bitcoin often leads a bull charge, but you can still proceeds 200% and above in some token markets at the right times. An active trading strategy that has room for reconnoitre new products is more likely to yield a reasonable return than a simplistic “buy and hold” strategy. Both will no doubt generate profits, but if you time your entry and exit on many of the emerging tokens, you’re likely to make money faster.
Disclaimer: The take ins expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN Markets.