The IEO is really HOT and very HOT in recent times when people have discussed it and struggled to line up to buy, which reminds me of the time when ICO was still HOT, it was almost like like that. But our grandparents had said, small boats - small waves, big boats - big waves. The higher the interest rate, the more risk it will have. Today, I will analyze the risks associated with your investment in IEO.
You should know that the IEO is very similar to ICO, It is a form of capital mobilization through public openings, only in one place is ICO open on their home page, and the IEO is open to sell through exchanges. So what is the risk here?
Price Risk:
According to our own observations, as well as experience, the IEO nature is also a project like ICO, which also mobilizes capital, as a company, so also has a specific roadmap, a development path, and so on. Not sure if the project is successful? It depends on the ability of the Project Leadership Board. You may hear that the price of the IEO after going to the floor will increase by five or ten times, but it is likely that the project will succeed so that the price continues to increase.
Risk of Exchange:
Currently there are few exchanges to release IEO, currently only Binance and Huobi. But it is quite certain that there will be hundreds of different trading floors joining this aromatic market in the near future. You should know this is an aromatic tribe for investors but if compared to the floor, it is not fragrant. If an IEO is successfully sold, the exchanges will charge a huge fee along with marketing costs and even own some IEO tokens.
But when too much, it is very difficult to choose, the easiest is to always choose the big and reputable exchanges, the small ones will be judged by the situation and consider, I think the big ones will be easier to xxx and other small floors, the possibility of x3 x5 may not be available, the wrong choice can be quickly divided into accounts.
Risk of exchange Token prices used to purchase IEO:
As you know, the IEO on Binance recently, the one who cried and laughed, who bought it was happy, the rest were crying. And these IEOs must mostly be purchased with the token of that exchange: For example, the IEO on Binance uses Binance Coin (BNB), the IEO on Huobi Prime uses HT token, ...
According to my observation, before the IEO, the price of tokens on the floor will increase due to increasing demand, investors must buy token to buy an IEO, After the IEO ends, a large number of investors will not buy being able to sell tokens exchange will reduce the price. For example, token BNB in IEO Con Celer, there are 39,000 people, each preparing 96 BNB to buy, calculated to be about $ 59 million ready, but only $ 4 million sold successfully, then the rest what will I do? Some will sell, some will keep waiting for the next IEO.
Bad IEO Risks:
Like the risk of exchange, once there are too many exchanges joining the IEO, there will be a lot of IEOs, good IEOs, and very bad ones. . Some exchanges will be profitable but forget to review the project carefully, the result is .... This, I am not sure but I think there will be bad guys appear when this trend continues to flourish. Buying a bad one will be divided into accounts instead of X accounts.
Summary:
Calm, confident, non-negative, avoid investing in wrong exchange, wrong projects. Upgrade skills as well as knowledge before investing, as well as regularly updating your knowledge as well as projects. Good luck!