ZB LaunchPad’s First Token Sale Sold Out in 12 Seconds, Will the IEO Craze Continue
ZB.Com Launchpad has completed its first token sale on Mar.27. The initial offering of 21 million VSYS was allegedly sold out in just 12 seconds, becoming another sensation in the crypto community after Huobi Prime’s first token sale project net $3.4 million in 19 seconds a night before.
Cheer! ZB First LaunchPad @VSYSCoin token sale is finished in 12 seconds.🚀🚀🚀
Stay tuned! VSYS/QC, VSYS/BTC and VSYS/ZB trading will be available at 2019/03/28 16:00 (UTC+8).#ZB #Cryptoexchange #Cryptocurrency pic.twitter.com/EtkHQKsfRu
— Zb.com (@ZbTalk) March 27, 2019
In view of crypto investors’ overwhelming interest, ZB.com, the world’s 5th largest crypto exchange by trade volume, has raised the bar for participant – entry into the VSYS sale required users to hold 1,000 ZB (token of the platform) at least on the account and users’ ZB were then traded for VSYS. The 21 million VSYS tokens, amounting to 0.402% of the total supply, have been snapped up in seconds’ time. Its price peaked at over $0.5 after the VSYS/ZB trading pair was available, currently it’s traded at $0.3, still a 10-fold increase from the initial offering price ($0.0265).
The night before on March 26, its counterpart Huobi Prime sold out a total of 1.5 billion TOP Network (TOP) with $3.4 million raised in 19 seconds. The price of TOP is currently over $0.01, spiking almost 6 times from the initial offering price. According to Huobi, only 3,764 people got a piece among the over 130,000 participants, with the successful purchase rate low as 2%. To set the bar higher, the exchange said participants for the next project are required to hold 500 HT for 30 consecutive days before the sale.
Amidst the so-called crypto winter, the current trending phenomenon in crypto exchanges has caused quite a stir in this form of initial exchange offering (IEO), an alternative for ICO fundraising started by crypto exchange Binance on its Binance LaunchPad earlier this year.
As Binance’s initiative turned out to be a huge success with its first three sales of BitTorrent (BTT), Fetch.AI (FET) and Celer Network(CELR) being massive hit, a plurality of major crypto exchanges have followed suit opting for the IEO model, including BitMax, Huobi, Bittrex, OKEx, Exmo, Cobinhood, Coinbene, Probit, ZB.com and KuCoin.
Though proponents see the IEO model as an effective way of ensuring the quality of projects since exchanges act as an intermediator and guarantor for the crypto projects, while in most avid crypto traders’ eye, it is simply another money-grabbing opportunity. What the project is doing does not seem topical to them, rather, they see it a good chance to play the pump-and-dump game and pocket money in the prolonged winter.
Scarcity breeds demand. Projects offered on these platforms have fared a similar frenzy as their counterparts. That may explains why the craze is keeping on. While as traders’ complaint doubting the real share they could get mounts, together with regulation issues, it remains to be seen whether the model is sustainable.