Recently, I've seen a lot of positive press regarding IEOs. After all, Binance is already successfully running them, giving ICO projects a chance to shine and many other exchanges are following suit.
My personal opinion is that IEOs should be discouraged. Firstly, it gives more and more power to these centralised exchanges, who are able to charge higher, more ridiculous listing fees for coins as well as extremely large payments to hold IEOs. Their vested interests in this way mean they are less likely to care about vetting projects that may be untrustworthy, leading to even more irresponsible behaviour.
Exchanges are already making far too much from listing fees, so IEOs on top are completely unnecessary. While they are good promotion for coins, such practices cannot be good in the long-term.
Instead, the focus should be easy-to-use decentralised exchanges which don't require intrusive KYC/AML and are much less likely to be corrupt/ill-willed if some DAO-like structure is in place. While blockchain technology has made the storage of data much safer, what is the point if thousands of crypto exchanges hold endless amounts of data on the customers in the same way banks do? The only thing changing is who owns the data, so privacy has not improved. And as crypto adoption increases, so will regulation of exchanges.
We don't want to end up in a situation where to trade any meaningful amount of crypto you have to send your name, address, ID, and bank account details to some exchange which can do whatever it likes with your data.
Your thoughts?
My personal opinion is that IEOs should be discouraged. Firstly, it gives more and more power to these centralised exchanges, who are able to charge higher, more ridiculous listing fees for coins as well as extremely large payments to hold IEOs. Their vested interests in this way mean they are less likely to care about vetting projects that may be untrustworthy, leading to even more irresponsible behaviour.
Exchanges are already making far too much from listing fees, so IEOs on top are completely unnecessary. While they are good promotion for coins, such practices cannot be good in the long-term.
Instead, the focus should be easy-to-use decentralised exchanges which don't require intrusive KYC/AML and are much less likely to be corrupt/ill-willed if some DAO-like structure is in place. While blockchain technology has made the storage of data much safer, what is the point if thousands of crypto exchanges hold endless amounts of data on the customers in the same way banks do? The only thing changing is who owns the data, so privacy has not improved. And as crypto adoption increases, so will regulation of exchanges.
We don't want to end up in a situation where to trade any meaningful amount of crypto you have to send your name, address, ID, and bank account details to some exchange which can do whatever it likes with your data.
Your thoughts?
Well, the whole idea of a centralized exchange is against the true vision of satoshi Nakamoto of creating a decentralized financial system for the entire world where no single server is in the control of the money flow amd other financial processes but then again, the invention of IEO created a viable means for project startups to easily raise fund for project development as the use of ico for raising fund was gradually dying.
The thing is, not only the startups projects are happy about IEO invention, even the investors are happy, as the two party is majorly concerned with making profit rathan than providing real life solutions which this project promises in their whitepaper.
I think IEO'S should not be discouraged because its re-image cryptocurrency investment giving hope to the crypto community after the great downfall of every coins and alts in the market that profits can still be make. The bottom line is, investors are bagging profits from investing on ieos, projects onwers are raising missions and the exchanges are gaining huge profits too.
Everyone is happy
