Initial coin offerings have been an evolutionary follow-up to crowdfunding. However, both fintech and blockchain rarely stay static for long. A new form of token issuance has emerged alongside ICOs, and it relies on the direct usage of an exchange as a launchpad.
Initial exchange offerings (IEOs) are a great means for projects to reach out to investors while making the funding process extremely easy and secure. The traditional ICO communicates through its Telegram and, on a sudden date, releases a smart contract address for token purchases. This form of fundraising has led to an incredible amount of scams as investors are duped into clicking wrong websites, accepting proposals from fake community admins, tricked into purchasing wrong tokens, etc.
ICOs are a great way to raise capital for blockchain projects but scammers exploit the existing ICO infrastructure. Additionally, the cryptocurrency space is quite new and many interested investors are used to broker-based investment services. Thus, an exchange-enabled token offering provides a more secure and familiar means of investing in new token offerings.
ProBit’s low fees on IEOs ensure that almost all the money investors intended to provide a project with is certainly provided to the project, while still enjoying the convenience, security, and access provided by a ProBit IEO.
Teams benefit beyond just low fees as ProBit’s large and constantly growing community and user base are able to note the projects being listed for an IEO on ProBit. This is a direct market that most other projects would otherwise never be able to access. On top of this, ProBit regularly engages with investors in the South Korean Crypto community; projects will have co-marketing opportunities. Thus, ProBit’s IEOs offering an all-round beneficial service for both investors and project leads.
One key issue that could be raised is that IEOs create an opportunity for hackers to walk off with investor funds allocated to project’s token offerings.
ProBit’s delivery of IEOs makes token sales not only secure for investors by making sure there’s no room for scammers to dupe new members of the Crypto space, but the exchange also leverages one of the most advanced security developments. As the vast portion of funds are held in cold storage, the assets remain out of the hands of any hackers. Moreover, the exchange utilizes world-class security infrastructure ensuring any breach attempts are easily crushed.
Some projects that initially declare a soft cap and fail to hit it often keep investor funds and pursue a project they clearly lack the funds to complete. This leads to a complete loss of invested capital. Initial exchange offerings on ProBit ensure that such scenarios never take place. If a project is unable to keep to its promised terms, investors will be protected and their capital will be returned.
ProBit’s entry into the IEO space disrupts the new form of fundraising by bringing highly competitive pricing to the market, despite the exchange’s ability to outdo the security of most other digital asset exchanges.
SPIN Protocol, a revolutionary e-commerce system, will be hosting its IEO on ProBit from February 11th. SPIN will benefit from ProBit’s existing reach, while providing its community a secure and easy means to participate in the token sale.
While ProBit has just launched its IEOs, the demand is high due to our ability to provide strong liquidity, community reach, and security. There are 5 other IEO candidates for just February.
ProBit aims to maintain the most competitive IEO pricing in the industry, just as it has done with its incredibly low trading fees.
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