Bittrex, an exchange that used to be one of the most popular exchanges in the crypto ecosystem, has followed in the footsteps of competitor Binance by announcing that it is to begin operating token sales on its platform. This is set to start with the RAID project this Friday. Malta-based Bittrex, which launched back in 2013, will host its first Initial Exchange Offering (IEO), where investors will be vying for their share of XRD tokens, the cryptocurrency associated with the RAID project. The announcement reflects another step in the changing nature of crypto project startups, from unregulated free-for-alls to KYC/AML restricted platform-based launchpads.
ICO vs IEO
Exchange-based token sales, such as Binance’s Launchpad platform and Bittrex’s forthcoming IEO, differ from standard ICOs, where investors buy directly from the project. With exchange-based token sales, the exchange serves as the counterparty to the sale, receiving the tokens from the project and in turn selling them to the public at an agreed price. This way the exchange receives a gaggle of new subscribers and the projects gain bigger exposure.
What is RAID?
RAID aims to give data ownership back to gamers using blockchain technology and token economy, decentralizing the game data ecosystem where data can be freely exchanged amongst users in exchange for tokens. By leveraging the game data ecosystem, RAID are also planning to promote and develop new businesses such as advanced game marketing, game data analysis and game distribution platform. Bittrex have been allocated 17 billion tokens to sell from the 100 billion total supply, with each token priced at 0.00000010 BTC ($0.00038) at current prices.
Muted Market Response
Reaction to the news was not entirely positive, with some wondering if a Bittrex token sale would generate the same amount of interest as Binance’s ones have to date, while others reinforced the idea that Bittrex was something of a forgotten platform:
do any of you know my bittrex password
— t0kes (@pt0kes) March 12, 2019
Sooo Initial Exchange Offering is a thing now, cool cool ..
This is a very smart way of bringing back the hype of ICOs, rebranding it to IEOs 🤯 — but serious talk, will there be the same level of #fomo?#binance #bittrex #ico #ieo #crypto $xrd pic.twitter.com/Mr6mG8SvAQ
— cryptobenks (@cryptobenks) March 12, 2019
Let us Know Your Thoughts
What do you think? Will Bittrex’s IEO enjoy the same success as Binance’s Launchpad platform? Does this represent a permanent shift away from the existing ICO model? Share your thoughts below.