Ninjastic
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Board Altcoin Discussion
Re: IEOs are more safe. But there are still problems that must be solved.
by
ramsdaj28
on 21/07/2019, 00:48:55 UTC
Quote from: Rozita on July 20, 2019, 02:58:30 PM
Buying the tokens on exchanges seems to be more safe than buying them on ICOs websites.
But there are still some problems:
1. Using IEOs instead of ICOs, we are adding a 3rd party than can control what we buy. This is in contradiction with the main purpose of cryotocurrencies which is centralization (edit: decentralization)
2. The big bonuses that big investors are still giving buying the tokens directly from the team and cause big price decrease
3. KYC that is still implementing. The only thing that has changed is that we are giving our documents to the exchange instead of the team ( In my opinion KYC should be completely eliminated or a new safe method which I have no idea about that should be implemented)
4. Exchanges might get money and do not pay attention to healthy of the project like what they do for listing the tokens

What do you guys think?
What should be done to have safer fundraising? Assume that you are making some rules. Just try to preserve the decentralization as much as possible.  

I don't think so. IEOs are new style of advertising and promoting a certain project. First of all, this does not guarantee that the project is legit. Also, your thread title is being opposed by your explanation (you are more of explaining IEO as an unsafe way than as a safe way).

IEO is the reason why I think there's only a few signature campaigns right now in the forum. Another thing, IEO is more of an UNSAFE way to join a crypto project. Buying tokens through exchanges during IEO stage will give an immediate impact to the price of the token, which is not good for small investors.

And yes, KYC is not a great thing on the part of investors. Honestly, KYC processes of these crypto projects are being done in the wrong way. As an investor, you should not disclose your personal info to people who you don't personally know. Once you give your personal info (especially your ID) to a certain project devs, the danger is already there. You should not give your trust to anyone considering that most crypto projects nowadays are exit scams. They might use your personal info for another BAD plans.