By CCN: It’s unpopular to say this in some sectors, but it can be brilliant to invest in altcoins. If you’d bought up a ton of Binance Coin when it was first offered, for example, you’d have made your investment back plus many hundreds of percent by now. This can be the same for upcoming IEOs as it was during the ICO boom. Functionally, the only difference is the backing of the exchanges themselves, which implicates them as much as it credits them.

IEOs are gaining popularity among investors. | Source: Twitter

IEO: ICO With Perks?

The initial exchange offering brings a benefit that previous ICO waves didn’t have: traders will know what the first exchange to list a given asset is going to be. Other exchanges will be able to support IEO tokens relatively fast – once they’re live – but those doing the listing will be setting the basement market price. From here, other prices will emerge; whether higher or lower, the first exchange will make the bulk of the initial trading fees on the new tokens.

That, of course, would make a lot of sense. But the reality of the scheme is that exchanges have to provide a massive list of cryptos to earn serious fees. Whether they charge the fees in the currencies themselves or charge them based on the bitcoin price, exchanges need volume to make money.

It’s not just a matter of appearing more attractive: volume is where they earn significant fees. If billions flow through an exchange, then they’ve made hundreds of thousands or millions.

If this happens every day, they can become rich.

The only way for it to continue to happen consistently is for there to continue to be a variety of assets to choose from. If exchanges weed through the masses of poor projects and laser in on projects that might provide some value to their investor, the next wave of token sales might make a lot more sense. New token allegiances will have some new nuance: you may not like a particular token because you didn’t have an account on the exchange that launched it, for example.

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