In 2019, the hottest keyword in the currency market was IEO.
20 seconds to grab the light, 10 times skyrocketing… Behind these well-packaged "wealth myths", more IEO projects have been broken, zeroed, and even suspected of running.
“IEO is by no means an upgrade of ICO, but a retrogression,” said one investor. “This is the 'combiner' that the exchange and the project side have created together.”
- IEO’s embarrassment, the era of “receiving wages” may be gone forever.
- April cryptocurrency financing monthly report: IEO replaced ICO as the main mode but the total amount still dropped by 70%
- Malaysia: Regulators publish IEO regulatory guidelines to take effect later in 2020
- Private placement is smooth, opening is deserted, why is LEO not as expected?
- IEO re-burns the ring of rich dreams, how long can the dozens of income myths go?
- SEC: IEO may be unregistered securities, the relevant exchange may need to apply for a stock exchange
After a lot of madness, the wave of IEO will eventually dissipate. It may be ridiculous to leave it to people after that.
The wave of IEO is still going on, but the first IEO project to run may have appeared.
In just three months, an IEO project called Yescoin (YES) completed the entire process from coin-issuing, harvesting to suspected running . And until today, there are still people who do not believe that this project has been zeroed.
“I saw the advertisement of Yescoin on the website of a well-known currency media.” YES investor Lu Wei told a blockchain reporter.
What attracted him the most was Yescoin's "unique auction model."
It means that investors can exchange platform points through USDT and use platform points to participate in digital currency auctions.
The Yescoin white paper shows that the Yescoin platform has a “unique auction model” that allows investors to obtain mainstream digital currencies such as BTC and ETH at prices below 80%-90% below market price. And Yescoin can also get 10%-15% of platform revenue.
The mainstream currency auction price displayed on the official website of Yescoin is indeed far below its market price.
"Actually, this model is not magical at all." Lu Wei said, "To participate in the auction, you need to use the USDT for the points and bid for the points. The auction is not successful, but the points are not refundable. The auction price of the successful bidders seems to be very low. But the points he paid for this are far more than the price."
In his view, Yescoin's so-called "unique auction mode" is actually the same as the "one yuan to win the treasure" and other routines. “It seems to be able to 'small and big,' but the real cost paid by the players is extremely high.” Lu Wei said, “The so-called 'low-cost buying coins' is just a scorpion, and fewer people are playing auctions in Yescoin. ”
Yescoin's “platform currency” YES may be more attractive to investors than a slightly sloppy auction model. Similar to many platform coins, Yescoin also has the function of “holding dividends”. The Yescoin white paper claims that 95% of the platform's revenue will be returned to the YES holder.
In order to drive YES, Yescoin has opened three rounds of "IEO" – buy the auction points and send the platform coins. Subsequently, YES opens the transaction. According to public information, YES has risen by more than 10 times.
But then, YES began to expose the face of its "harvester." On April 14, Yescoin's YES/USDT transaction pair closed quickly after a short period of time, and users could not withdraw it. "Even the daily dividend data is no longer updated." Lu Wei recalled.
“Yescoin claimed that the reason for the closure of the transaction was the need to fix the bug, and investors soon questioned it. Yescoin claims to be the Firecoin Cloud Exchange, sharing the back end with the Firecoin. But why is the Firecoin safe and sound, and Yescoin is 'pull the cable'?” Lv Wei said, "Subsequently, Yescoin officially responded that the platform had applied for docking with the Firecoin Cloud in January, but the docking was unsuccessful and no cooperation with Firecoin was carried out."
"Until then, everyone found out that they were cheated." Lu Wei said.
Soon, angry investors discovered more "black materials" from Yescoin. The team members in the Yescoin white paper were exposed to fraud, and the CEO's "GWThomson" avatar came from a web image. “The project party also gave him a funny pair of glasses.” Lu Wei snarled.
Compared to online photos, the CEO of Yescoin has only one pair of glasses.
Yescoin's official response to this is “a lot of CEO international cooperation projects”, and urged investors to “remember people to cloud” – “cutting” was labeled as “remember”.
A blockchain reporter found that other team members' avatars from Yescoin can also retrieve the original images on the major commercial gallery websites.
In the end, the most news of investors panic appeared. Some users broke the news that more than 90% of the private equity funds on the Yesconin platform were transferred to other exchanges – the Yescoin team suspected of running.
Yescoin denied running on April 16th, saying that "the team has been doing real things." However, Lu Wei said that the official Yeescoin has banned the Telegram group, "the early transaction records were also emptied."
A blockchain reporter found that the current official website of Yescoin can only query transaction data after April 19. On that day, the highest price for YES was 0.085USDT. Since then, YES has continued to fall, and yesterday set the lowest price of 0.0001USDT.
After April 19, YES's currency price trend
To this day, investors at Yescoin are still in the discussion group, arguing over whether the Yescoin platform is running.
"Now on the Yescomin, there are robots that scan small transactions at a rate of two or three minutes, but the real trading volume is close to zero." Lu Wei said, "There are people in the group who often say: 'This list is his hanging, That is what I hang."
"Yes is really a hundred times of money, and it has fallen more than 100 times." Lu Wei said with self-deprecating, "It is a shame in the IEO community."
Yescoin's "running" has made many people realize the crisis of IEO for the first time.
In 2019, the currency security restarted the token publishing platform "Coin's Launchpad", which opened the prelude of IEO.
The IEO allows the project side to skip the traditional currency fundraising links such as ICO and directly log on to the exchange. Driven by the exchange and the project side, it quickly became a new model for sweeping the currency circle.
Major exchanges such as Firecoin and OKEx have entered the IEO. In January, the first IEO project, BTT, was launched, and the first share was sold out in 13 minutes. Two months later, the first IEO project on the hotline was launched, and the total cost of the three rounds was only 19 seconds.
Not only the head exchange, but also many small and medium-sized exchanges have begun to enter the IEO market.
LongHash data from the blockchain data platform shows that in March alone, 28 IEO projects were born around the world, with an average of 0.9 per day, involving a total of 12 exchanges.
The two most representative exchanges are Coineal and Probit.
Coineal is also known as "coin". According to its official introduction, it is a “global digital currency exchange” jointly created by the teams of China and South Korea.
In March, the Coineal Exchange launched a total of six IEO projects. As of April 22, all six projects have been open for trading.
They all broke, and the biggest daily decline was over 90%.
Take the IEO project XPV on Coineal as an example. On the first day of trading (March 28), XPV's decline reached an astonishing 99.999%, and then did not rebound.
"Working hard to grab the share, the result is not a single buy, directly return to zero." Wang Hao, an investor involved in the XPV project IEO, said.
Another Korean small exchange "ProBit" is more radical than Coineal. As of April 22, ProBit has launched 22 IEO projects, of which 2 are still under subscription.
However, until today, none of these IEO projects have been open for trading.
In this wave of IEO, there are also some exchanges that have launched their own platform coins and joined the ranks of IEO.
Gate.io and the currency city BISS are two of them.
On April 1st, Gate.io announced that it will launch the platform coin "GT" and will open the IEO channel "Startup" on April 17.
The announcement shows that the first IEO project on the platform is CNNS.
Another exchange currency, BISS and Gate.io, launched its own platform coin "BISS" and the IEO channel "BISS UP". Its first IEO project will be released on April 25.
According to the official announcement of the currency market, the number of online users at the currency exchange has hit a record high, driven by the hot platform currency and IEO, reaching as many as 40,000. At the same time, the currency city official also said that BISS's rushing activities, there are also a large number of plug-ins, scripts and other tools, affecting the fairness of snapping up.
But the chaos that IEO brings is not limited to this.
On April 23, IEO ushered in a new round of climax.
Gate.io's first IEO project, CNNS, completed the subscription. At the same time, Bibox announced that it will temporarily take off SKR in the four first IEO projects.
According to Bibox, this is because the project's off-site quotas have “a lot of scatters” – this will lead to early investors who can quickly enter the market after the IEO opens.
However, SKR has given another version: it has not received any Bibox official inquiry about its off-site quota.
Since then, SKR has voiced through several media, saying that Bibox temporarily announced the suspension of SKR on the line because the two parties failed to reach an agreement on the amount of "margin".
According to SKR, in order to qualify for Bibox's IEO launch, SKR has paid a $200,000 USD "margin" to Bibox. Since then, Bibox has asked for a $1.25 million "marketing gold" and a "guarantee" of $300,000.
Bibox responded that this is SKR "trying to smear Bibox." However, Bibox did not give an explanation of the details such as "margin".
The two sides have since fallen into a Rashomon. The unspoken rules of the industry, such as the IEO currency fees, which Luoshengmen is involved in, are also receiving attention from the outside world.
"The so-called 'guarantee' is actually the legendary 'on-coin fee'." A trader practitioner Mao Pu told a blockchain reporter that "the market-making gold" is the same, and now the project side will make market value. Management, pull-up also costs."
But in his view, the biggest problem in Bisheng and SKR's Rashomon is that the amount of "margin" and "marketing money" is too large. “The cost of the coin is too ridiculous, and the head exchange in the bull market is not the same.” Mao Pu said.
"For exchanges such as Bibox, the currency fee + the market-making cost at the beginning of the project is relatively reasonable," said Mapu. "Even if there is an IEO starting premium, the cost should not reach 10 million."
In his view, the high cost of the coin only means one result – IEO became the "exchange site for the exchange, the project side swallowed, and then cut the leeks with the exchange."
This view has also been recognized by the digital currency researcher Uncle: "Now some small exchanges engage in IEO, not so much as 'self-help', but rather to circle money."
Today, the head exchange basically monopolizes 90% of the digital currency trading volume. If a small exchange wants to survive, it must attract funds to enter. And IEO is the best way to attract money at the moment.
“IEO will give investors an illusion – as long as they can grab the share, they will be able to make money.” Uncle said, “The off-site funds will be attracted to them. When they come, the project party and the exchange can Make money."
In his view, IEO and ICO still adhere to the same routine: "circle money, pull high, attract leek to take over, ship, and finally a bunch of locks."
However, with the help of IEO, some small exchanges can cut the leek more unscrupulously. Some IEO projects break open on the opening, and even go directly to zero.
Mr. Ran revealed that some project parties have been in the same league as the exchange: “The exchange promised to raise the price of the project by 5 times. The project party will trade the exchange, and the exchange will pass the cost of the pull to the project side.”
"The current IEO market has entered the stage of group wolves." Uncle said, "When all exchanges are engaged in IEO, IEO is not far from the end."
In his view, the tide of IEO will end in this quarter.
"After the currency circle will be a desolate. Just like the ICO field, the cut is cut, and the zero return is zero. The platform coins of the major exchanges also have to be sold a lot. Risk," he said.
Some keen investors have also begun to notice the risks of IEO.
“IEO is by no means an upgrade of ICO, but a retrogression. For the ICO project, some conscience exchanges can still fulfill their censorship obligations. But now IEO is out, the exchange and the project side have become 'combined harvesters'. Specially cut our leeks." A coin investor wrote on the forum.
But in the face of huge wealth effects, not everyone agrees with this view. In the above post, another investor replied: "The new leeks that ILO brought to the exchange are actually coming to pick us up. It’s good to see if you break it."
Maybe, before the moment the sickle is swung, no one will think that he will be a leek.
The disk, plug-in, shady… The IEO that was born soon has caused many questions.
On March 21, the Beijing Internet Finance Association issued a document calling for prevention of IEO financing risks:
"At present, some media, social platforms, and research groups have taken the 'financial innovation' as a gimmick, taking the opportunity to speculate on the blockchain concept, seriously disrupting the normal financial economic order and bringing social risks."
The myth of wealth is shattered, chaos continues to breed, and where will IEO finally go?
* Some of the respondents in the text are pseudonyms.
Text | Ratchet Pizza