Does Binance Apply Price Strategy on Its Launchpad IEO Platform?
While the ‘traditional’ ICO (initial coin offering) fundraising model seems to lose steam throughout 2018, the new approaches to token sales, for example, the security token offering (STO), and the initial exchange offering (IEO), are starting to gain popularity.
Currently, major crypto exchange Binance is spearheading the IEO space with their Binance Launchpad platform. As of press time, it has successfully hosted tokens for BitTorrent Token (BBT) and Fetch.AI (FET), which were both exceed market expectations.
Yesterday, He Yi, the co-founder and Chief Marketing Officer of Binance discussed this hot top on Weibo.
“IEO becomes the catchword in the crypto world, although I don’t even know what’s the ‘E’ stands for. I would like to clarify that, the projects on Binance get so popular because of their high quality and low prices. But once a project gets launched, its price will be determined by the global crypto market, and time will tell us which project is good.”
In an interview with blockchain media BlockBeats, Binance CEO Changpeng Zhao (CZ) also indicated that the ups and downs of token price are determined by autonomous market behavior, and would never be manipulated by Binance.
The exchange would suggest the project team to set a lower initial price to attract users and in the long term, the quality of their products, technology, and services would be the key factors to the token price.
When CZ was asked about if Binance is using the price strategy for those blockchain projects listed on the Launchpad, he firmly denied.
“We just ask the project team to give a fair price which would be accepted by the market. Raising the mass of funds may not be a completely good thing to the development team. This is because the current funding model is not aiming to raise money, you have to ‘raise’ users, fame and credit.”