Binance, OKEx and KuCoin Are Using IEOs to Command the Spotlight
Token sales haven’t stopped since the 2017 boom. They’ve just changed names.
Initial exchange offerings (IEOs) – where a cryptocurrency exchange offers a direct listing and launch campaign for a new startup token – are earning blockchain companies millions in 2019.
Two sources, who both requested anonymity to avoid alienating exchange partners, told CoinDesk that some exchanges declined to list their tokens unless their startups paid hefty fees, in various formats depending on the exchange. These fees, the sources said, ranged from 10 percent of the startup’s equity, plus a percentage of the token’s global market cap, to over $1 million for “marketing.”
One such anonymous source said that exchanges are looking to compete with ethereum, which has been primarily used thus far for creating new assets.