In the first quarter of 2019, the deserted currency circle seemed to be filled with high-profile praises of "Binance leading out of the bear market", but in fact it seemed to have some meaning.
With Binance restarting Binance Launchpad in January, two popular projects BTT and FET were launched one after another. During this period, with the extremely strong rise of the platform currency BNB, it became the focus of the currency circle for a while. Since then, the concept of IEO has also been completely launched.
This is also after the short-lived madness of trading mining concepts in 18 years, "cryptocurrency exchanges" have once again found a point of momentum that can make waves in the bear market. But this time it seems to be a little different.
Some people view it positively, thinking that it will be an outpost to detonate the bull market.
Some people treat it pessimistically, it seems that they just change the name (ICO) and make nothing.
Although it is currently impossible to distinguish which attitude is correct, one thing is undeniable that the insiders have finally been awakened by the popularity of IEO, which has been silent for a long time, and began to stir up.
1. Top exchanges break through
It is said that in the bear market of the currency circle, the most feared thing is not the decline, but the endless sideways trading with no end in sight.
This is not only true for project parties, Token Funds, and retail investors, but also for cryptocurrency exchanges, one of the most important links in the entire currency ecosystem chain.
In the bleak bear market, small exchanges collapsed in groups. The project parties either made a fortune and left, or lacked money to do "market value management". Many Token Funds are also empty shells, and retail investors are even more trapped. , "Winter" froze a large area to death, and the status quo of funds in the entire currency circle dried up.
The chain reaction of the lack of money has caused the K-line of the exchange's currency price to form a straight line most of the time. Without the effect of making money, the exchange has become even more neglected. Even the top exchanges such as Binance, Huobi, and OK, except for contract leverage and strategy quantification, the number of real trading users who speculate in spot trading is really small.
During the bull market, trading platforms rely on transaction revenue fees, project party listing fees and other main sources of income to thrive naturally. But now, the exchanges who are living on their laurels can only continue to try to explore other directions of drainage and gold absorption.
OK started a small business of "raising pigs";
Huobi wants to do everything and started the business of contract trading;
Binance, on the other hand, found another way to break through. Taking advantage of overseas advantages, it restarted Binance Launchpad and took the lead in starting the IEO journey.
Facts have also proved that Binance has become the most successful one in this wave of attempts, not only earning enough attention, but also taking away users from other companies.
In the past two days, several major platforms have been eager to keep up. OKEx CEO JayHao announced the IEO brand of "OK Jumpstar" on Weibo. Huobi also announced that it will be Huobi Prime. It also said to open the IEO mode at the first time.
The influx of leading platforms, followed by smaller platforms, completely ignited the flames of IEO.
It’s just that behind the popularity of IEO, the review mechanism that uses the platform as a reviewer to screen projects also seems to have doubts.
2. IEO under the money-making effect
When we talk about the IEO model, the first thing we think about is the money-making effect it brings. Apart from this, everything else is empty talk.
Therefore, the success of IEO is actually due to the successful launch of Binance’s first project, BitTorrent (BTT). A huge hot spot.
It’s just that this can’t help but make people speculate. If the prestigious Binance launches its own crowdfunding platform, if it can’t be a hit, it will naturally be ignored in the bear market and end up “died”. Do this kind of useless work.
On the other hand, behind BTT is Sun Yuchen, who is recognized as the number one in marketing ability in the currency circle, and is the main pusher. So far, the miracle of Tron’s hundred times in a single month is still vivid. Two strong players in their respective fields choose to cooperate. In fact, the answer to BTT is already there before it goes online, or the success of the first IEO is imperative.
Fetch, an AI project launched later, also encountered many doubts before it went online. Some evaluation agencies said: FETCH’s technical implementation and final landing are facing major obstacles. There are many doubts and contradictions in the white paper, and there are many uncertainties. sex.
However, the currency circle is still a world dominated by capital games. As long as there is enthusiasm and potential to make money, it will be chased by funds. At this time, the high-quality authenticity of the project seems to have been left behind.
On the eve of the launch of the FETCH project, there were also Internet cafes, and some stayed up late to wait. It was very lively. In the end, it opened with a 5-fold increase, but it has fallen all the way since then, and it has attracted many retail investors who want to buy.
In the currency circle, it seems that the brainless stud gene has always been there. In the fantasy of skyrocketing, retail investors still cannot make rational investment choices after doing objective research projects.
Recently, Bitmax, which is invested by Bitmain, is about to launch its own IEO project - DOS. At present, the price of over-the-counter transactions has reached 5 times that of private placements. At first glance, one can't help but feel like returning to 2017. The illusion of ICO madness.
3. From ICO in the bull market to IEO in the bear market
The last round of bull market was prospered by ICO and died by ICO.
The root of the demise lies in the period of madness, the market has entered a state of disorder, investors have lost their rationality, various shell sub-projects broke after misappropriating money, and incidents of agent investors running away, all kinds of ghosts and snakes have jumped out.
If there is any difference between IEO and ICO, there is a certain guarantee for filtering the most basic empty shell (or pyramid scheme) projects and avoiding primary market losses caused by not getting coins.
The emergence of STO before, to a large extent, was brought up to discuss the possibility of development many times because of the intermediate audit institutions as endorsement trust. However, due to the influence of traditional institutions and traditional markets, the wide circulation of tokens Sexuality is difficult to achieve after all, and this is where IEO differs from STO.
However, where there are people, there must be selfishness. The current large trading platforms are also controlled by people, so there is always a question mark in judging the true pros and cons of a project.
Because the centralized platform acts as an intermediate reviewer, it is equivalent to the project party adding the endorsement of the platform. As an ordinary investor, what we believe is the platform, not the approval of the project.
From another perspective, this is also equivalent to giving them the right to lie to us. Ordinary investors can only passively believe that all project choices made by the trading platform are real.
Counting the history of the past two years, in fact, the consequences of infatuation with similar centralized authority endorsements are mostly not good. If the trend of project fundraising is concentrated in the hands of exchanges, whether they can maintain integrity for a long time, whether there will be black-box operations, or what kind of small calculations are behind them, these are all potential risks.
Therefore, how to solve this problem in a more objective way may also be something that the exchange needs to think about.
4. The opportunity to detonate the bull market?
Of course, everything has two sides. During the bear market, some low-key blockchain entrepreneurs will enter the market, but the difficulty of financing has become a hurdle in front of them. If the trading platform can provide them with Financing channels have been opened, and a demand point has indeed been solved.
In addition, if multiple IEO projects can maintain an optimistic increase in currency prices after they go online, the money-making effect will naturally attract more funds to enter the market, and it is possible to reproduce the previous reincarnation.
It is undeniable that the financial nature of the currency circle is destined to be realistic in this circle. Now under the cold winter, the lack of funds in the venue has actually caused the problem of the poor operation of the entire ecology. If the popularity of IEO can solve this dilemma, it will be beneficial to all the friends in the venue.
