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IEOs are essential for raising funds for new crypto projects, says co-founder of harmonyprotocol

Biraajmaan Tamuly



IEO's are an evolution of ICO's; essential for raising funds for new crypto projects, says Co-founder of harmonyprotocol
Source: Pixabay

Back in 2017, when Bitcoin raised its value up to to $20,000 due to the massive surge, ICOs were majorly trending as it garnered the interest of all traders and investors. Altcoins were booming as the cryptocurrency ecosystem received enormous attention.

The virtual asset industry currently witnessed another major hike even as the crypto space finally stepped out of the long crypto winter of 2018; in a similar fashion to 2017, IEOs have been replicating the hype of ICOs from 2017.

Recently harmonyprotocol’s ONE IEO was launched on Binance and the token witnessed a decent amount of success following the launch. However, many crypto enthusiasts and investors are skeptical about the concept of IEOs after witnessing the fail of ICOs back in 2017.

Nick White, Co-founder of harmonyprotocol, recently shed light on the whole scenario encapsulating IEOs and indicated that IEOs can be both a ‘black box or a golden goose’.

White suggested that the concept behind IEOs was considerable and it was an evolution of ICOs which was substantially important in terms of raising capital for crypto projects and endeavors, but White admittedly said that “it was not a perfect system.”

He indicated that a little centralization was essential in this case since IEOs were prominently centralized around the exchanges. White also emphasized on the fact that for an IEO, the traction of users and track record of the exchange made the overall impact. He said that Binance was the best exchange in that regard.

Last White said,

” And with cz_binance’s leadership, who knows, we may see binance decentralize itself in the future. Imagine if they were able to decentralize the IEO process too. Unstoppable crowd fundraising to build the future we all envision.”

Recently, Stephen Tse, the Founder of Harmony, announced that the ONE token accounted for 99.19% of the total volume on Binance DEX, making it the largest token being traded on the largest decentralized exchange in the world.

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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.


Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report




Ampleforth could help create next gen synthetic commodities for diversification of portfolios claims new Blockfyre report
Source: Unsplash

Ampleforth was the first token to successfully complete an IEO on Bitfinex. This IEO caught the attention of a lot of users in the cryptospace, as the $5 million hard cap was sold out within the first 11 seconds. A new report by Blockfyre details how Ampleforth could pave the way for a new asset class for portfolio diversification in the future.

The report also highlighted a feature of Ampleforth that allows a flexible supply that adjusts to the market demand, while price simultaneously finds equilibrium. The token also aims to tackle the strong correlation that most cryptocurrencies share with Bitcoin.

Synthetic Commodity

Ampleforth project has the ability to create synthetic commodities that are disconnected when it comes to price fluctuations due to correlations, which is a common problem faced by both cryptocurrencies and traditional asset classes. Although Bitcoin was created to tackle problems that fiat currency inherently has, it still has some correlation issues.

In a world where traditional assets are widely affected by macroeconomic and global political scenarios, Ampleforth aims to create a new asset class, Synthetic Commodity, to tackle this problem.

The report stated,

“BTC as a synthetic commodity doesn’t show correlation to traditional markets such as stock stocks and bonds. Thus it reflects a potential good investment for portfolio diversification, in order to tackle macro-economic recession”

Although BTC is an uncorrelated asset, other cryptocurrencies are widely correlated to it. Ampleforth’s protocol introduces synthetic assets that “will always find a price-supply equilibrium by adjusting the price due to demand.” The report added,

“It needs to be emphasized, that these price-supply information will always be distributed amongst all token holders, so the supply of all token holders will decrease / increase. As a result, the overall cut of the total supply for each person will always remains the same.”

The report further said that if successful, Ampleforth will directly compete with Bitcoin’s $145 billion market cap and also against traditional asset market-based in fiat.

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