Matic becomes one of the few coins to survive the early stages of IEO

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Initial Coin Offerings (ICOs) are a unique investment platform for the cryptocurrency industry, however they have many flaws and there is no real way to determine if an ICO is an exit scam. Recently, a new form of initial offering has emerged that looks more attractive than its predecessor: Initial Exchange Offering (IEO).

Essentially, this is a more regulated form of an ICO. The tokens are first placed on an exchange, which verifies the validity of the tokens, and then sold like an ICO. Since most exchanges place limits on the number of tokens sold and only allow small purchases, IEOs appear to offer a more regulated platform.

Although the risk is lower than that of ICO, most IEOs fail to launch and the price drops below the initial price. A typical example is BitTorrent Token. BTT was one of the first IEOs offered on Binance, but after the initial price of 33 Satoshi, it quickly fell to less than 4 Satoshi, and the trading volume is still decreasing.

Another typical example is Fetch.AI. The token was initially traded at $0.42, but soon fell by about 90%. Even after the mainnet launch, the FET price continued to fall and fell a further 8% last week. It is now sold for a pitiful $0.04.

There are always exceptions. Matic Token (MATIC) is one of those rare examples that has managed to maintain its value and expand in value. The asset initially started trading at around 71 Satoshi and experienced several peaks. Currently, the price of MATIC is around 225 Satoshi, which is a huge increase in terms of BTC and USD prices. The important thing to note is that this price was achieved after a massive hype and scalping event.

While improved, IEOs are not perfect. One key factor behind the poor performance of IEO tokens is very low liquidity. In a year where exchanges have been keen to delist a large number of smaller tokens, these new assets generally fail to achieve any success. ICO tokens crashing and burning in slightly more spectacular fashion are still fresh in the minds of most investors.

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