Investing in altcoins has always been a hot topic in our coming altcoin news section. If you bought a ton of Binance Coin (BNB) when it was first offered, for example, you could have earned a lot on it and get a great return on investment.
The same can be said for the upcoming IEOs which are viral at this period (just like ICOs were during the boom). Functionally, the only difference between IEOs and ICOs is the backing of the exchanges themselves which implicates them as much as it credits them.
Described as leaner and meaner ICOs, IEOs are basically Initial Exchange Offerings which are gaining popularity among investors. So, when a popular cryptocurrency exchange forms its token, investing in altcoins suddenly becomes interesting and everyone wants to buy it.
In a way, the initial exchange offering (IEO) brings a unique benefit that previous ICO waves did not have – which is the fact that traders know what the first exchange to list a given asset is going to be. They will be direct rivals in terms of the prices and will control the supply with higher and lower prices, making the bulk of the initial trading fees on the new tokens.
As the altcoin news now show, the Binance Coin (BNB) is a great example of how investing in altcoins like these can be profitable. Aside from the plain investing, volume is where the exchanges earn money too – and everyone gets rich.
However, the only way for it to continue to happen consistently is if there exists a variety of assets to choose from. If they weed through the masses of poor projects, investing in altcoins may be profitable.
At the end of the day, exchanges need new tokens to increase volume of IEOs. Unlike a lot of ICOs which ran in 2017, exchanges have their business to keep in mind. This new offering model brings an insight in the market which shows that the model lends some credibility to certain projects.
A lot of best cryptocurrency news sites report the rise of the IEOs. Do you think that investing in altcoins like these is profitable?
Share your views in the comments!
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