Acknowledging the rapid development of IEOs, OKEx faces a dilemma when it comes to listing IEO projects: despite its ability to bring liquidity to the market, IEOs often lack of support and is highly uncertain at the early development stage of blockchain technology; OKEx, on the other hand, as the leading crypto exchange, needs to respond to users’ needs and assist with the project growth.
The crypto space not only needs to attract enthusiastic entrepreneurs and investors, but also a responsible trading platform. “I believe that IEO is only a small chapter in blockchain history. The blockchain sector is set to grow at a fast pace, and we should take an objective attitude towards the shift”, said Jay Hao, CEO of OKEx.
In April 2019, Jay Hao said that “the market is pushing OKEx to make decisions” in his open letter. The market and users both play an important role in IEO development. After careful considerations, we decided to launch an IEO project listing platform, OKEx Jumpstart.
Figure 1: Development timeline of OKEx Jumpstart
We focus on maximizing exposure for quality IEO projects through promotions on various social channels. We also strengthen the communications between investors and project teams through our transparent platform and reviewing system.
Yet we noticed that the biggest obstacle OKEx Jumpstart faces is the risks of speculation in the secondary market, instead of user protection, project selection or market transparency.
The current IEO model needs to be changed
For most IEO investors, whether or not to invest in a project does not simply depend on the project’s outlook or values, but the expected profits they could make once the project is listed on the platform — for they know that projects listed on OKEx could generate significant gains.
Notwithstanding the rosy prospect of our growth, investors are keen on securing a share of token offering, instead of the long-term development of crypto project communities. Unfortunately, this is a structural issue that we see at present. The IEO market, therefore, lies in a clear risk of secondary market speculation and is harmful to the community in the long run.
Speculation is definitely bad for IEOs.
In fact, crypto speculators create a knock-on effect on the market. If IEO investors are merely in for short-term profits, these projects would fail to create a sustainable community and IEO financing would lose its meaning.
The revolutionary nature of OKEx IEO
How to develop a sustainable system while the industry is taking off? How can project teams and communities achieve a synergy effect at the development stage? How does the exchange serve as a third-party market platform and a driver of growth for projects and investors? These are the questions we need to address.
Over the last six months, OKEx has transformed OKEx Jumpstart into a powerful listing platform after numerous trial and error. We have implemented six major updates on the rules to curb speculation and frauds, so that investors can focus on project and community development.
Figure 2: The New OKEx Jumpstart Rules
Driven by a sense of empowerment and responsibility, OKEx Jumpstart serves as an unflinching third party between investors and project teams to facilitate win-win cooperation. We wish to tackle the current pain points in the industry through implementing updates on OKEx Jumpstart, to foster a better environment for investors.
As a bridge between quality projects and investors, OKEx Jumpstart is set to offer outstanding services to serve the needs of both parties. We wish to empower projects by leveraging OKEx’s influence in the industry, and to further develop use cases and grow with the community.