Article By Lesia Dubenko
“While we knew Huobi Prime’s inaugural launch of TOP would be popular, even we were amazed by the overwhelming response. We were thrilled to hold our opening launch with our great partners at TOP Network and we are humbled and honoured by how many people wanted to take part.”
IEO replacing ICO?
The fact that Huobi managed to raise $3.4 million during IEO is certainly impressive. However, it also indicates that a new model of raising funds might soon replace ICOs. The main problem with ICOs is that they are often carried out by fraudsters. As a result, investors fall prey to malign intentions and lose money. There is a myriad of examples of such scams, which is why it is important to look out for these details.
However, there are downsides as well. The biggest one is that following IEOs a high percentage of coins end up in the hands of the few. This means that it will be easier to manipulate market price.
To find out more about different types of initial offerings, make sure to check out this article.