IEO is the fuse of the market Xiaoyangchun? No, it’s a buryer.

If the blockchain differs from other digital technologies such as the Internet of Things and big data, then digital currency is a very unique existence. The new financial market formed by it determines the most lonely time. There will also be a large number of people paying attention to the blockchain field, and finally attracting the attention of the society to the top of the market when the market rebounds, which in turn will serve as a spark for the future. The recent performance of the currency market is a testament to this view. After the end of last year, some elites issued multiple death notices, the blockchain concept is highly optimistic in the mainstream society, with the spring digital currency of 2019. The heat of the market has once again attracted the attention of the outside world. Unlike the previous round of bull market dominated by "ICO", in this round of Xiaoyangchun, the IEO, which is an auditing intermediary of the exchange, seems to have taken the lead in replacing it. So, can IEO really open a new bull market? How long can it continue to heat up?

Figure: Bitcoin and blockchain have been in the field of technology for many years.

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IEO: Is the bull market marker or the terminator?

To answer this question, we must first understand the reasons for the rise of IEO. On the surface, the rising price of the IEO project seems to be due to the careful selection and strict control of the project by the mainstream exchanges. In fact, in addition to the high-profile control that everyone is unaware of, the IEO is still hot. Can not be separated from a big background: that is, the current digital currency market has also entered a small spring. Strictly speaking: Leading the current "Xiaoyangchun" is not the sky-high curve of the IEO project, but the mainstream currencies such as Bitcoin, Ethereum, and Litecoin have steadily increased. Although the specific reasons for the rebound of the mainstream currency are still controversial, such as "half of the Wright currency", "the admission of quantitative funds", "the mining of hot water during the flood season", "the admission of mysterious forces on Wall Street", etc. But what is certain is that the rise of these mainstream currency prices has given many investors a potential expectation: that is, the bear market in the digital currency market has bottomed out, and the market will continue to rise in the long run for a long time. In fact, they are one of the deep reasons why they dare to invest their money in IEO, and after the latter rises, they have not made a long-term sell-off, making the price of these projects out of a relatively beautiful curve. For this, people can imagine: the same thing happened in the big bear market in the second half of last year, IEO's project price is not said to be quickly worn, it is difficult to get out of today's stable curve, because everyone feels The decline will continue, so I just want to cash out and leave.

From this point of view, the popularity of IEO is actually a very delicate thing, because its key is not in the IEO project itself, but in the mainstream currency that gives investors potential confidence, and the problem is: IEO's new project Currently sucking blood from mainstream currencies, and the intensity of blood-sucking is growing stronger with the spread of IEO on various exchanges. Although the funds in the two fronts of the new project and the mainstream currency are still barely enough to support their respective market capitalization levels, if the IEO continues to expand and causes too much blood loss in the mainstream currency, the market value of the latter will eventually be limited or even fall back. The bull market of the entire market is expected to decrease or disappear, and the impulse of IEO investors and even the project parties themselves will begin to become strong. Under such circumstances, the scene of the “first-line break” in the primary market last year is likely to reappear, and the popularity of the IEO will drop sharply. But this may not be because the quality of the project itself is not good enough. In the final analysis, the first dominoes that fell, in fact, the bull market caused by the blood loss of the mainstream currency is expected to disappear.

Decentralized financing: costly social experiment

From this point of view, IEO actually plays a role in delaying the arrival of the real bull market. In particular, some of the projects involved in IEO are actually some of the players who failed to go to the top of the ICO wave last year. Bottles of old wine are not too much. And the expansion effect it played is basically a replica of the flood of projects in the first half of last year. So why are there still many industry celebrities still supporting this model? In addition to some interest factors that lead to attitude tilt (for example, the exchange can benefit from increased trading volume), another reason is that whether it is ICO or IEO, it actually represents an idealism: That is the financing of the startup and the decentralization of the investment rights of the startup.

As is known to all, in the traditional venture capital field, if a startup wants to have financing rights, it often has a certain “gateway”. If investors want to invest in related companies, they often have to meet certain conditions. That is to say, the financing rights in the venture capital field and the investment rights in the primary market are all in the hands of the top-level centralization institutions. The blockchain financing platform based on Ethereum has realized the de-intermediation of the audit, which has reduced the right of project financing to every team interested in starting a business, and the right to invest in the primary market has sunk to C. The retail of the end there. In this way, the sinking of investment-related power and the decentralization and de-intermediation of the entire industry have been realized.

Figure: Compared with ICO, the role of IEO is mainly to reduce the degree of decentralization of financing projects by setting up intermediaries.

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But the question is, like IPO, ICO, the potential of such financing and investment can be infinitely sinking, and ultimately distributed to the hands of each individual? The answer is no, any reasonable use of power requires people with power to have good professionalism and ethics. In the past year, we have clearly seen that in the absence of a reliable auditing intermediary, if the financing rights are decentralized to the extreme and all the way to the irresponsible ordinary people, then a large number of air coins will be cut For the ordinary people, the amaranth is not wanting to live. It can be said that "the peasants turned over and they were more jealous than the landlords." Since then, people have reached a consensus: "Financing rights and investment rights must not sink to the hands of every individual. Only those projects with certain conditions are eligible to use the blockchain for financing." But this "condition" What is it? To which level or depth should the project's financing rights sink? Nobody knows. Now that the exchange is the IEO model of the project platform, it has played a role in exploring the above-mentioned unknown problem. If the IEO can really hatch some valuable projects, it means that the financing right of the project can be I sink to the level of “Exchange Site Research” and there is also the possibility of further sinking in the future. However, if this wave of IEO is defeated, it means that the exchange is unable to guarantee the quality of the project. The financing rights of the startup can no longer sink to the level they are at, but should be more professional. The organization to conduct research, packaging and distribution. But regardless of the outcome, this matter has a positive effect on the industry, because it allows people to know where the bottom line of the sinking of financing rights is.

However, although the financing model such as ICO and IEO and the sharing economy such as accommodation and transportation mentioned by the author are both decentralized economies caused by power sinking, its trial and error costs are much higher than The latter two: You have chosen an unreliable homestay, at most, it is a one-night loss of travel experience, but if you choose an unreliable financing party, the loss is likely to be a large investment. Needless to say this, the tears of ICO investors last year have profoundly explained everything. It is only from the changes in many times in history that this situation is hard to avoid. Just as every mature medical therapy is often followed by the pains of countless patients, a mature decentralized financing model is likely to leave unfortunate memories for the whirlpool. From this point of view, the first thing for retail investors in the blockchain wave is not to make money, but to hedge – that is, how to raise the slogan of the times when the big buddies who have realized the freedom of wealth Avoid making yourself the price they pay for when they are pursuing progress. After all, as long as you stay in the car honestly, you will definitely reach the end, but if you are caught under the wheel because of the difficult movements, you may not even have the chance to stand up again.