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What’s Initial Exchange Offering? How Is It Different from Initial Coin Offering?

By
IFP Media Wire
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They began discovering this new and trending plan. It allowed developers to raise funds for their new crypto projects without fearing any summoning from the monitoring authorities.

 

Understanding IEOs

As the name suggests, an Initial Exchange Offering (IEO) is conducted on a crypto exchange platform. In contrast to Initial Coin Offerings (ICOs), IEOs are mandated and regulated, on behalf of the developers, by a crypto exchange platform. The purpose behind such an offering remains the same, i.e., raising funds through the newly developed crypto-coin.

Most crypto exchanges have similar policies that the developers have to be compliant with. First, the crypto developer has to pay an issuer’s fee to the crypto exchange. This is actually the fee charged for listing the newly developed coin on the exchange. Along with this, the issuer also has to sell a portion of their total listed crypto-coins to the exchange platform. After the IEO is completed, their coin gets listed. The bitcoin exchange platform is also bound to carry out the newly developed token’s marketing operations since a percentage of the listed coins are sold to them.

You should know that ICO participants send their investment to a smart contract. But for IEOs, investors don’t submit it to a smart contract. If an investor decides to back a newly launched crypto-coin, they’ve to register on the crypto exchange platform conducting the IEO. Then, they will have to deposit funds in their digital wallets and purchase assets using that money.

 

IEOs on Crypto Exchange Platforms

As more and more developers are opting for IEOs, crypto exchange platforms have begun to accept IEOs. One of the biggest exchanges, Binance was the first to launch Binance Launchpad, the first of its kind IEO platform. In January earlier this year, bitTorrent, which was bought out by TRON, offered a crypto-coin sale on Binance’s exchange platform. It hit the crowd sale hard cap and raised $7.2 million in about 15 minutes.

Less than 15 minutes taken for all the offered tokens to be sold is surely a dream for any new crypto project developer. But, the second coin offering on the platform was an even bigger success. Fetch.AI was this crypto-coin which hit the market cap of $6 million within 25 seconds!

 

All observed the success of the Binance Launchpad. It led to the launching of several new IEO platforms by major crypto exchange platforms like Bittrex (Bittrex International IEO), BitMax (BitMax Launchpad), OKEx (OKEx IEO), KuCoin (KuCoin Spotlight), and Huobi (Huobi Prime). In recent IEOs, Band Protocol was up by 1251% and Harmony by 55%.

 

IEO vs ICO

Now, coming to the main part of this article. What are the differences between IEO and ICO?

First, the fundraising for an ICO is conducted on the issuer’s self-developed website. On the other hand, funds for an IEO is raised on a crypto exchange platform.

Second, for an ICO, the developer manages the smart contract. The crypto exchange is responsible for regulating the smart contract for an IEO.

The verification procedure is also different between the two projects. An ICO may or may not require AML/KYC but an IEO runs an authentication check on its users.

Talking about marketing operations, an ICO is completely advertised by the developers. So, there’s a need to designate a high budget for it as well. In contrast, since a part of the total supply of the crypto-coin belongs to the crypto exchange platform, they’re obligated to market the coin on the developer’s behalf.

The main difference between them is that an ICO isn’t guaranteed listing even after a successful offering. The developers need to reach out and find exchanges for listing. On the contrary, an IEO gets listed on the crypto exchange after the offering is over.

 

Benefits of an IEO

Trustworthy and Reliable

The most important benefit of an IEO is its reliability. The crowd sale is offered on a renowned and verified crypto exchange platform. The platform checks and authenticates the details of the developer before allowing them to launch their IEO on its platform. This helps the exchange platform become more reliable and reputable. It also gives investors confidence as they’re assured of secure investment.

IEOs eliminate scams and swindles that are a common occurrence in the crypto industry. It prevents suspicious companies from raising funds. The case of RAID IEO is an exceptional example. The crypto-coin was about to go on crowd sale on the Bittrex network. A few hours before the launch, Bittrex announced that they’ve canceled the IEO launch of RAID on their platform. The launch was canceled after the crypto exchange platform got to know that the partnership between an e-gaming analytics firm, OP.GG and RAID were terminated. This was a critical partnership required for the launch of the token. Bittrex decided to cancel the $6 million (projected) as the launch was now not in the interest of its users.

Listing

The crypto exchange platforms are contractually bound to list the crypto-coin once the IEO is over. So, after the end of the crowd sale conducted by the cryptocurrency exchange, the token is listed on the platform for regular investment and holding.

Secure

The exchange platform conducting the crowd sale is responsible for managing the security of both sides. It authenticates and verifies the details of its users’. Only AML/KYC verified users are allowed to participate in the IEO. The exchange platform also conducts a scan of the developers who’ve created the token. It allows clean and genuine developers to list their coins on its platform.

Simple and Convenient for Crypto Projects

IEOs prove to be more convenient for crypto project developers. When they were conducting ICOs, it was their responsibility to do everything on their own. In the IEO scenario, the crypto exchange platform does all the work, including marketing, for them.

It’s worth considering IEOs over ICOs even if the developers are bound to pay a listing fee and sell a percentage of the crypto-coins to the exchange platform. Generally, it’s developers with a lower marketing budget that opt for an IEO launch. An IEO launch ensures listing and allows developers to leverage the customer base of the platform to get more funding and for future projects as well.

 

The only disadvantage of an IEO launch is the associated price. On average, a developer will have to pay 20 BTC as a listing fee for a launch on any renowned crypto exchange. The exchanges also take a percentage of the tokens as a fee for marketing operations.

 

Participating in an IEO

IEOs are a new idea in the crypto industry and are a quite rare occurrence. But that makes it easier for potential investors to identify a suitable IEO for them. Then, they need to find out the crypto exchange platforms conducting the IEO launch for the token.

Next, an investor is supposed to sign up and verify their details. An AML or KYC authentication has become necessary to use a crypto exchange. Once the registration is complete, a user needs to deposit funds in their wallet. Now, the money in the wallet can be used in the crowd sale to invest in an IEO of their choice.

 

Can IEOs Lead to Next Boom in Fundraising?

In 2017 and 2018, ICOs resulted in a fundraising boom. But many investors were defrauded in these times as the tokens were mostly developed and launched by scammers. It didn’t prove to be efficient or secure and this is the primary reason why many countries have now banned ICO launches for crypto assets.

On the contrary, IEOs are more trustworthy and reliable than ICOs, both to the customer, and developer. It’s safer and more cost-efficient too. The crypto exchanges are responsible for carrying out a successful IEO launch. The IEO model proves to be more efficient and it has the potential to create another fundraising boom for developers and the crypto industry in the next couple of years.

Top Iranian Security Body Backs MPs’ Legislation Aimed at Lifting Sanctions

By
IFP Editorial Staff
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In a statement on Saturday, the SNSC said the Strategic Action to Lift Sanctions Motion was returned to the Parliament after corrections were made to it.

“The SNSC incorporated some considerations into some aspects of the issue, approved them and they were finally communicated to the Parliament as an SNSC decision,” read the statement.

It added the SNSC only made some corrections to the plan and was not involved in its adoption in the Parliament.

“Different phases of the plan from drawing up until receiving final approval were all conducted based on the modus operandi and legal procedures of Parliament, and the SNSC was not involved in it,” it added.

The statement underlined the SNSC believes the legislation will not harm the country’s national interests; rather, the bickering over the law is a cause for concern.

“It is this wrangling which has harmed the status of the country’s legal bodies (Parliament) and affect national unity and solidarity,” it said.

“Undoubtedly, the viewpoints and behaviour we saw in recent days have compromised national interests for the sake of partisan interests, and they will not benefit the country and will only send the wrong message to enemies,” it said.

The statement warned that the council will allow national interests turn into a plaything in the hands of politicos.

Gorgeous Tamaddon Alley in Downtown Tehran

By
Photo of the Day
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Photo by Mohsen Danak, Tehran Picture Agency

Gorgeous Tamaddon Alley in Downtown Tehran

Second Dead Whale Washes Up on Kish Island’s Beach

By
IFP Editorial Staff
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It is not yet clear why the 14-metre-long Bryde’s whale has died.

Dead Whale Washed Ashore on Iran’s Kish Island

 

Iran’s President Hopes for Closer Ties with Thailand

By
IFP Editorial Staff
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President Rouhani on Saturday sent a letter to Prime Minister of the Kingdom of Thailand Prayut Chan-o-cha to congratulate the Thai people and government on the Southeast Asian country’s National Day.

In the congratulatory message, President Rouhani expressed hope for the promotion of relations between Iran and Thailand in light of their age-old friendship and the mutual determination of the two countries’ authorities, and also for the expansion of bilateral ties in all fields.

The president also wished the Thai prime minister, people, and government health, success and prosperity.

Thailand marks its National Day, also the National Father’s Day, on December 5, commemorating the birth of late King Bhumibol Adulyadej in 1927.

Iran Overturns Death Sentences of Three Convicts Involved in 2019 Fuel Protests

By
IFP Editorial Staff
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Upon a decree by the head of the Supreme Court, the three convicts, Amir-Hossein Moradi, Mohammad Rajabi, and Saeed Tamjidi will be tried again in another court branch.

They had been found guilty of involvement in unrest and riots in the country in late 2019, and sentenced to death.

The Supreme Court had earlier upheld their sentences and they were awaiting execution.
Retrial is an extraordinary proceeding which can take place only with the approval of the Supreme Court.

COVID-19 Vaccine Rollout Shouldn’t Keep People from Observing Protocols: Rouhani

By
IFP Editorial Staff
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President Hassan Rouhani said compliance with health measures should not decrease at any rate.

“Abidance by health protocols should not decrease in the hope that a vaccine may be developed, and we know that no vaccine is 100% effective,” he said.

Rouhani noted relevant measures are enforced depending on how affected an area is.
“Any place which is declared as a red, orange or yellow area, we will act in accordance with protocols again,” he said.

“The restrictions have had positive effects, and this trend (drop in infections) will continue only if people keep wearing masks, do not hold gatherings and minimize travel,” he added.

The president underlined the number of COVID-19 tests will soon reach 100,000 per day.

He said those ordered to remain in quarantine must do so or they will have to pay fines.

“If it becomes evident to us that someone has violated quarantine instructions, they will be fined,” he noted.

The president then said the capital, Tehran, is in an “orange” state, but that it is on the verge of turning “red.”

“Seven cities are in an “ultra-red” state which is getting worse,” he said.
“We will re-impose the restrictions in any place which is in a red state,” he noted.

IAEA Duty-Bound to Ensure Confidentiality of Safeguards Information: Envoy

By
IFP Media Wire
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Kazem Gharibabadi made the remarks in a post on his twitter account on Friday as the confidential IAEA report obtained by Reuters said the Islamic Republic plans to install three more cascades, or clusters, of advanced IR-2m centrifuges in the enrichment plant in the central city of Natanz.

“In a letter dated 2 December 2020, Iran informed the Agency that the operator of the Fuel Enrichment Plant (FEP) at Natanz ‘intends to start installation of three cascades of IR-2m centrifuge machines’ at FEP,” the IAEA’s report to its member states said.

Gharibabadi wrote, “@iaeaorg confidential report, based on Iran’s confidential letter, appeared in Media immediately even before the BoG Members could track it down,” referring to the IAEA Board of Governors.

“Agency is not merely responsible to update the development, but shall ensure confidentiality of safeguards information,” he added.

“If neither the Agency nor its Member States are to be blamed for this crack in confidentiality, @iaeaorg should revise its confidentiality mechanisms including regarding using GovAtom as the safe and confidential means for communications.”

GovAtom is a service provided by the IAEA to its Member State representatives. It provides them with online documentation on the work of the Board of Governors and its Committees.

Additionally on Friday, Russia’s Permanent Representative to International Organizations in Vienna Mikhail Ulyanov criticized the leaking of the confidential IAEA report on Iran.

“Yet another confidential #IAEA report on #Iran was leaked to mass media immediately upon its circulation in Board of Governors. The Ambassador of Iran in his Twitter account has already reacted by suggesting to strengthen mechanisms of confidentiality. Good idea but will it help?” he asked.

Iran showed to the world the peaceful nature of its nuclear program by signing the Joint Comprehensive Plan of Action (JCPOA) with six world states — namely the US, Germany, France, Britain, Russia and China — in 2015. The nuclear deal was also ratified in the form of a UN Security Council Resolution 2231.

However, Washington’s exit in May 2018 and the subsequent reimposition of unilateral sanctions against Tehran left the future of the historic agreement in limbo.

Tehran remained fully compliant with the JCPOA for an entire year, waiting for the co-signatories to fulfill their end of the bargain by offsetting the impacts of Washington’s bans on the Iranian economy.

As the European parties failed to do so, Tehran moved in May 2019 to suspend its JCPOA commitments under Articles 26 and 36 of the agreement covering Tehran’s legal rights.

Iran Urges UNESCO to Condemn Assassination of Fakhrizadeh

By
IFP Editorial Staff
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Iran’s Ambassador to UNESCO Ahmad Jalali asked the organization not to seal its lips in the face of such terror acts.

“You are all aware that terrorists assassinated the fifth Iranian top scientist six days ago … Today, not as an Iranian, nor as an academic, but as an individual, who has spent 20 years of his life in this house, I urge UNESCO not to remain silent, but to condemn it,” he said.

“It hurts the human conscience, let’s find a solution together,” the official added.

“Terrorism must be condemned, no matter who it targets, scientists, teachers, journalists or anyone else,” he said.

“For many years, hundreds of scientists from developing countries have been killed and we are doing nothing,” he said.

“Dear colleagues, if there is only one world organization to address this serious issue, it is UNESCO,” said Iran’s ambassador.

US Sanctions Targeting Iran’s Medical Sector amid COVID-19 Pandemic: Minister

By
IFP Editorial Staff
-

Speaking at a virtual meeting of the UN, Saeed Namaki described Washington’s sanctions as economic terrorism.

“The unilateral coercive measures imposed by the United States will have a negative impact on the trend of fighting the [coronavirus] pandemic in my country,” said the minister.

“Illegal unilateral actions impede people’s easy access to basic medial items and needs, and hence, jeopardizes Iranian citizens’ health,” he added.

“This pandemic reminds us of how much honesty, solidarity and cooperation we need at local, regional and global levels,” he said.

He said the COVID-19 pandemic has swept the world and has offered numerous lessons to learn for all, which shows the international community lacks enough preparedness to counter the disease.
“Global readiness and emergency reaction should top the agenda of governments and international agencies for the decades to come,” said Namaki.

“Leadership, solidarity, cooperation among different sectors, intervention based on evidence and coordination between countries are the necessary tools to manage the COVID-19 pandemic,” he highlighted.

“Moreover, we should reinforce the information technology infrastructure to provide more reliable medical data and virtual education in the new era,” he added.

“I urged international financial institutions to offer considerable financial support to member states regardless of political impediments,” the minister said.

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