South Korea's IEO fundraising report
I. Introduction
I. Introduction
1. In January 2019, Binance restarted Launchpad. On January 28, the BTT project acquired by Justin Sun landed on Launchpad and was quickly sold out. The price of BTT skyrocketed to 10 times in Binance.
2. After the launch of the sale on February 25th, the second project Fetch.AI (FET) on Binance Launchpad was released within 22 seconds, and a total of 69.2 million FETs were snapped up. FET, which was launched on the 28th, doubled five times at the opening of the market, and investors reveled.
3. On March 7, Huobi was revealed by the media to launch a product similar to LaunchPad"Huobi Prime", innovated in schema and compliance. Huobi’s official response: The full name of Prime is Huobi’s preferred currency listing channel, and it will provide an innovative, fast, and compliant comprehensive currency listing service for global high-quality projects around HT.
4. On March 8, CoinW announced its strategic investment in Leek. Leek is a well-known crowdfunding platform with more than 100,000 users. More than 80 projects have successfully raised funds on the platform, with millions of The user's Biying.com will assist Leek in transforming from a centralized fundraising method to a multi-centralized and decentralized fundraising method. High-quality projects will be directly selected into the Biying LaunchPad.
5. On March 9, BitMax announced the pre-sale of tokens. The decentralized oracle network DOS Network will pre-sell 5 million DOS tokens through BitMax.
6. On March 11, Bittrex International, a subsidiary of Bittrex, an established international exchange, announced that it will soon launch the first IEO project RAID. KYC-verified users will be able to purchase XRD tokens with Bitcoin directly on Bittrex International.
7. On March 11, KuCoin CEO Michael confirmed on Twitter: "We will launch a project called Spotlight in the near future, aiming to provide a release platform for blockchain projects with real value and potential."
8. On March 12, OKEx CEO Jay Hao revealed on Weibo that OKEx will soon launch the utility token sales platform "OK Jumpstart" product, which will be used to foster truly high-quality projects and early entrepreneurs.
9. According to news from Brock Technology, ZBG Exchange, a subsidiary of ZB, launched the ZBG Launchpad and launched the KAM project on March 25.
10、…………
Recently, IEO seems to be very popular, which makes many friends feel a little baffled. In fact, in July 2017, Binance launched Launchpad, an asset issuance platform, hoping to help high-quality blockchain projects raise digital currency. At that time, two projects, Gifto and Bread Wallet, were launched. However, on September 4, 2017, the central bank and other seven ministries and commissions jointly issued a document to stop the collection of digital currency, and the affected Launchpad gradually faded out of the market.
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2. Overview of Korean IEO
In November 2018, KBSA (Korea Blockchain Entrepreneurship Association), Korea Blockchain Industry Promotion Association and Korea University Cryptocurrency Research Center jointly announced the IEO guidelines. The guidelines consist of dozens of project reviews in five aspects including buyer protection, development planning, technical information, legal compliance, and security, with a total score of 1,000 points. A blockchain project with a score below 700 can get a sales quota of up to 1.5 billion won (about 9 million yuan), while there is no limit for a score above 700. On March 4th, Ted Koo, vice president of KBSA, participated in the community interview of the Coinin program "Blockchain in Korea" and mentioned that the IEO Guideline will be updated every three months based on actual cases.
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3. Opinions of various parties on IEO in South Korea
1. Exchange:
Representative of PROBIT Exchange Do: In 2019, more projects will be financed in the form of IEO. Although the current market is not good, under such circumstances, the project party will show its own ability to prove itself value. The emergence of more and more excellent projects will bring better development to the entire blockchain market, and good development will lead to more excellent projects. Under such a virtuous cycle, the entire blockchain market will have More and more good development and prospects.
Representative Kim of IDCM KOREA: During the period of digital currency raising, most of the fundraising was done through intermediaries. During the IEO period, exchanges replaced the role of middlemen in the period of digital currency raising. During the digital currency raising period, the price of the project’s online currency will increase by 5-10 times, which is completely unreasonable, and it is also because of this increase that there will be an upsurge in digital currency raising. Although most of the exchanges that do IEO are in South Korea, the IEO model not only in Korea but also overseas will get better and better in the future, and corresponding laws and regulations will also appear in the legal aspect. If the formalization of IEO is a good model.
2. Investors:
Director Zhao of SEED Venture Capital: I personally think that an undifferentiated IEO will lead to an undifferentiated exchange. First build a good exchange, and then conduct IEO on the exchange, which is good for a virtuous circle, but if not, you can only die together. Before the blockchain IEO financing method was born, only a white paper was needed to raise funds. At this stage, financing through IEO needs to pass a series of reviews by the exchange before proceeding. Although the exchange cannot fully identify the prospects of the project, each exchange will carefully review the project before conducting an IEO to reduce certain risks for its own users, but the risk is still high and investors still need to invest rationally.
3. Project party:
(Anonymous) Compared with the era when only white papers could be used to raise funds, the current IEO form is a better era for projects with real technology, landing capabilities, and application scenarios. At least a certain threshold for the financing process can be a good start for a really good project.
4. KOL and media community:
(1) Representative of BlockchainToday: IEO was born more as an alternative to digital currency raising. IEO can only be a temporary solution in the down market and cannot be the best way to completely solve the current down market. If you want to expand the market size, you need new users to invest in the market. So far, there are still many investors who have been trapped in the decline after the big rise in 2017. In terms of the number and amount of current investors, it is necessary to expand the market size. impossible. If the sto route does not work, it is possible that the offline digital currency fundraising model may be opened again.
(2) Representative of USEB Gold: I think it is difficult to attract successful investment only by the exchange selling potential projects through IEO. It must be backed by the strength of the team and a solid business model. Moreover, I think that compared with the stage of receiving investment, a value preservation policy for ex-post investors should be introduced at the same time.
(3) Dolidoli: As long as the exchange is of conscience, IEO will be better than digital currency raising.
(4) THE BITWIN Global Founder Emille Kwon: There is still a big gap between IPO and IEO:
l Investment verification and responsibility: General financial public offerings require the certification of securities companies, and fundraising through HTS (with certain responsibilities), but it is uncertain whether the exchange will seriously review when conducting IEOs (no responsibility)
l Supervision limit: In the general public offering, it needs to be supervised, and in the case of IEO, fundraising can be carried out without supervision
l Scope of participants: In the case of general public offerings, not only members in charge of securities companies, ordinary people can also apply online, and can be limited to their own users when conducting IEO
Based on the above three points, IEO is not yet comprehensive in terms of stability, fairness and expansion. Personally, I feel that when individual investors participate in IEO, they first need to verify the exchange and then verify whether the TOKEN is worth investing in. For a better IEO model, the trust in the exchange must first be restored. Investors should be provided with an open and transparent IEO process and a verification process for TOKEN.
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4. Korean IEO channels and methods
South Korea’s IEO, to a certain extent, is based on the idea of Token Sales, that is, to sell the tokens issued by the project, mainly on exchanges, and at the same time have a certain amount of traffic and endorsement channels, and IEO is also going on. It mainly includes three types: exchanges, communities, and communities:
1. Exchange Token Sales method
l The project party needs to provide: white paper, official website link, team information, company/project profile, local community situation, local publicity situation, project progress, etc.
l The exchange conducts a preliminary review
l Meeting between the exchange and the project team
l Comprehensive review
l Carry out IEO
2. Community Token Sales
South Korea’s well-known blockchain communities Cobak and Tokenbank are also launching IEO-like platforms, which raise funds in the form of project Token discount sales. It is also a fundraising channel.
3. Community Token Sales method
Driven by the upsurge of exchange IEOs, some large Korean communities have also begun to conduct Token Sales, which is somewhat similar to the previous ICO proxy investment method.
exchange
exchange
1）Bitsonic
Official website: https://bitsonic.co.kr
2）Probit
Official website: https://www.probit.kr/ko-kr
3）Ventasbit
Official website: https://www.ventasbit.com
4）BTCC Korea
Official website: https://btcckorea.com/home
5）IDAX
Official website: https://www.idax.pro
(IEO coming soon)
6）Coinbene
Official website: https://www.coinbene.com
7）Trebit
Official website: https://www.trebit.com
8）Coinzest
Official website: https://www.coinzest.co.kr
9）Nexybit
Official website: https://nexybit.com
10）Cashierest
Official website: https://www.cashierest.com
11）Coinrail
Official website: https://coinrail.co.kr/intro
12）Upxide
Official website: https://www.upxide.com
13）IDCM
Official website: https://www.idcmkorea.io
Community:
1）Cobak
Official website: https://cobak.co.kr
2）Tokenbank
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community
Community Token Sales channel, at the request of the other party, will not make any public leaks for the time being.
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4. How to do a good job in Korean IEO
How to do a good job in IEO is also a question that many project parties want to know. On the whole, firstly, the Korean compliance of the project; secondly: project fundamentals + Korean brand awareness + Korean community activity, and the in-depth cooperation and issuance of exchanges are also essential links.
1. IEO is actually a way of public financing. When it comes to financing, investors are needed, and the place with the most investors is the community and the community. Whether it is the upsurge of digital currency fundraising in 2017 or the IEO in 2019, The community and community users of the project itself are essential.
2. It is essential to have a large number of users that the brand building and practicality, implementation, technology, team members, product models, etc. of your own project need to be communicated to users through the Internet, so publicity is also not possible during IEO missing step.
3. There are many other ways to increase the amount of financing and obtain more users. In addition to the technology of the project itself, there are also investment institutions, partners, development routes, technical teams, exchanges for IEO, etc.
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5. IEO Precautions
In a sense, IEO is a game of "only success, no failure" - at least in the initial stage of the project's online transaction, the token price cannot fall below the issue price. Otherwise, not only the confidence of investors in the public offering stage will be damaged, but also investors who are waiting and watching will leave the market. If market confidence is shaken, IEO may face a collapse. IEO does not solve the core problems of the current industry: good projects, landing, and more of the exchange's endorsement review and issuance (it is said that the financial field, the exchange itself has financing and circulation functions), an innovative way of raising funds, so Whether it is the participating exchanges, project parties, project parties, investors, etc., they all need to stay sober. But innovation itself is worth exploring.
1. Compliance: Consider IEO regional regulations
2. Exchange endorsement: The exchange plays a major role in IEO. On the one hand, it will be responsible for its own brand; at the same time, individual cheating is not ruled out
3. Overvaluation: The number of high-quality exchanges is limited. Driven by speculative psychology, it will bring users FOMO. At this time, the valuation of the project may be raised in disguise, and users may suffer losses in the future
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6. The latest developments of IEO
1. Coinin and BlockGlobal will initiate the selection of global excellent projects. For high-quality projects that meet the IEO conditions, they will cooperate with multiple exchanges in China and South Korea to build in-depth; at the same time, they will refer to Chinese and Korean regulations and jointly formulate a set of IEO project review and rating standards. ;
Participate in the selection of excellent IEO projects:
http://coininkorea.mikecrm.com/ZcjpMzW
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7. Currency Listing Strategy on Korean Exchanges
Finally, I will give a brief explanation of the Korean exchanges Bithumb, UPbit, Cashierest, etc. that many friends have consulted recently. Listing on Korean exchanges requires strict requirements on project information and Korean brand communities, and sufficient preparations in the early stage can save a lot of communication time and costs. The following is a brief list:
1. English or Korean
2. Company Profile
3. Project white paper
4. Project official website
5. Utility token lawyer documents (preferably from Hong Kong, Singapore, and the United States)
6. Currently listed on the exchange (it can be best displayed on Coinmarketcap)
7. Project disclosure information (preferably both domestic and foreign media) report link
It is suggested that if you want to list currency or IEO on the Korean exchange, you can prepare the materials according to the above, and then communicate with Coinin or related partners. Finally, welcome innovation, welcome doubts, and hope that the industry will develop healthily and sustainably. BlockGlobal and Coinin will continue to deliver more industry trends and promote them together with friends in the same industry.
The above is only a partial summary, and Chinese and Korean investors are welcome to contact us
Coinin WeChat customer service: CoininKorea, supplementary update
——Special thanks to the following organizations——
Initiator:
Block Global、Coinin
Co-organizer:
Block Technology, Block Capital, blocktimes, BeeCast, Huopin Online
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Source: Block Technology
This article is published by the author of Bullock's column, and does not represent the views of Bullock, and the copyright belongs to the author
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