Bittrex crypto exchange launches an initial exchange offering (IEO) on behalf of RAID signifying an upturn in the rather dwindling cryptocurrency market while fostering global adoption.
The effects of the crypto winter are still biting ruthlessly. Amid these hostile conditions, cryptocurrency exchanges and blockchain companies keep coming up with new methods of raising money and awareness. Bittrex is one of these crypto exchanges that have shifted to walking on a new trend of launching an Initial Exchange Offering (IEO).
The Exchange will launch its first IEO on behalf of RAID, a blockchain project. As announced on March 11, 2019, Bittrex will host RAID (XRD) token Sale on its platform in a new concept known as Initial Exchange Offering. According to the announcement, Bittrex will launch IEO of RAID project. The new project is a blockchain-powered gaming data start-up originating from South Korea.
For that reason, RAID already delivered its 17 billion XRD tokens to Bittrex exchange targeting to raise $5.95 million. The exchange plans to offer 1 XRD at the cost of 10 Satoshi. They have set a minimum purchase of $10 and a maximum of $20,000. The IEO of RAID’s XRD token will start on March 15, 2019, at 10.00 AM KST time.
Bill Shihara, Bittrex CEO elaborated about the latest development and the RAID blockchain platform saying:
“We are committed to increasing adoption and moving the blockchain revolution forward. The ability for projects like RAID to innovate, advance, and promote the gaming industry on our platform is a game changer for all involved and not just for RAID and our team.”
On the other hand, RAID co-founder Taesung Kim referred to the IEO as a ‘tremendous honor.’ He also believes that Bittrex’s choice was a ‘vote of confidence’ for the project’s vision. He said:
“This IEO will be crucial to making a more transparent gaming data ecosystem, and the businesses needed to achieve it, a reality.”
Initial Exchange Offering (IEO) Debunked
The IEO is a concept beyond ICO token sale. Unlike ICO where the prices may encounter less security level, experienced manipulation, and may reach sudden sell-off initially, IEOtakese place on registered crypto exchanges. In IEO, exchanges host token sales on behalf of the project rather than the project itself.
Through that process, the exchange offers higher security level while simultaneously avoiding price manipulation. Therefore, IEO is simply an advanced method of hosting a token sale and raising capital through a cryptocurrency exchange.
Is it a Binance LaunchPad’s Competitor?
Although IEO takes a similar approach to that of Binance’s launchpad, it is not a direct competitor to Binance. Bittrex will act as the counter-party to the upcoming sale. Changpeng Zhao (CZ), the CEO of Binance Exchange, believes that crypto will eventually gain global adoption. He is thrilled to see RAID joining the ‘club.’ He said:
“The race to see who lists first is overrated, and short term focused. Exchange users are very liquid. They move around all the time. We just focus on improving our products and services for the long run.”
Bittrex’s founder, Bill Shihara, is confident of the exchange’s security level. He said that his company is committed to increasing adoption rates and supporting the blockchain revolution. He also believes that the ability of projects like RAID to advance, innovate, and promote the gaming industry on Bittrex is beneficial for all participants.
Potential buyers need to set up a Bittrex account, a process expected to bring new traders to the platform. The exchange’s location lets investors from all over the world to participate in regulated token sales.
The new developments may signify an upturn in the crypto industry. Although the crypto world looks better than months ago, trading volumes are still down. This being said, Bittrex might hope the IEO will enable it to catch up to its largest rival.