- Justin Sun, founder of TRON shared on twitter that IEO’s launched on Poloniex’s LaunchBase platform will have to raise funds in TRX (Tron).
- Following the statement made by Justin Sun, Vitalik Buterin, co-founder of Ethereum, tweeted his opinion.
- Vitalik mentioned that IEO’s are dumb and instead we should consider DAO crowdfunding.
Earlier on April 6, Justin Sun, founder of TRON (world’s top 10 crypto network) shared on twitter that IEO’s launched on Poloniex’s LaunchBase platform will have to raise funds in TRX (Tron), a cryptocurrency of the Tron network. Tron, founded in September, is a blockchain decentralized platform aiming to build a global digital content entertainment system with distributed storage technology and for the allowance of easy and cost-effective digital content sharing.
What is IEO and how it works?
An Initial Exchange Offering, conducted on the platform of a cryptocurrency exchange is administered by a crypto exchange on behalf of the startup so as to seek the raising of funds with the newly issued tokens. Token issuers are supposed to pay a listing fee along with a percentage of the tokens that were being sold in the IEO.
This follows with the tokens of the crypto startups being sold on the exchange’s platform and their coins being listed after the IEO is over. The percentage of the tokens sold by the startup that is taken by the cryptocurrency exchange is meant to encourage the token issuer’s marketing operations. The strategy IEO participants have to follow is that they have to create an account on the exchange’s platform where the IEO is being organized. The contributors use coins to fund their exchange wallets and to buy the fundraising company’s tokens.
Justin Sun Vs Vitalik Buterin Once Again
Following the statement made by Justin Sun, Vitalik Buterin, co-founder of Ethereum, tweeted his opinion that IEO’s are dumb and instead we should consider DAO crowdfunding.
Eh I think IEOs are dumb and we should be looking into DAO crowdfunding anyway.
No interest in replicating the Sun dictatorship on its own terms.
— vitalik.eth (@VitalikButerin) April 6, 2020
The DAO, a digital decentralized autonomous organization launched in the year 2016 after a crowdfunding campaign has open-source code and was being instantiated on the Ethereum blockchain. Its objectives are the provision of the decentralised business model for the organization of both commercial and non-profit enterprises. He further added that he finds no interest in the replication of Sun dictatorship in the tweet.
IEO & DAO crowdfunding both bring lots of values in their own way. One is not more superior than the other. IEO provides value for investors because it has a dedicated selection team that provides excellent evaluation of the project itself.
— Justin Sun (@justinsuntron) April 6, 2020
Justin Sun believed that both IEO and DAO crowdfunding brings a lot of values in their own ways. He stated neither of them owned more superiority than the other asserting that IEO provides value for investors as it maintains a dedicated selection team that aims to provide an excellent evaluation of the project itself.