The ICO boom of 2017 was the major reason behind many altcoins pumping massively. Several coins without proper resource allocations raised millions of dollars and delivered nothing, while coin holders took profits. However, SEC’s crackdown put an end to such scams and paved the way for other investment methods for people who wanted to launch new crypto-coins, some of which include STOs [Security Token Offerings] and IEOs [Initial Exchange Offering].
The latter became quite famous as it was spurred by the world’s largest exchange, Binance. The exchange made sure to migrate Binance Coin [BNB] from Ethereum blockchain to their own blockchain. This was followed by an announcement that allowed other projects to move from ERC20 platform to Binance Blockchain.
The launch of BNB on its mainnet was followed by the launch of Binance DEX and a platform called Binance Launchpad, for its famed IEOs. The launch of BitTorrent’s token sale on January 31 made approximately $7.2 million and in less than 15 minutes of launch, it had a hard cap of $7.2 million. The second token, Fetch.AI, sold out within 22 seconds of launching and had a hard cap of $6 million.
Unlike ICOs, IEOs bring trust back to the ecosystem by reintroducing centralization. It involves a middle man and centralized authority, in the form of an exchange platform.
So far, Binance has listed 5 tokens excluding the Bread token, that was launched December 12, 2017. The other tokens include BitTorrent, Fetch AI, Celer, MATIC, and Harmony.
The above table tracks the percentage rise in the price of the tokens after being listed on the exchange. BitTorrent tokens were sold at $0.001865 during the public sale, with the price surging by a whopping 975% to the price at press time.