The past few months have seen many positive steps for the cryptocurrency industry in general, such as the further development of the Bitcoin Lightning Network and even a new movie based upon cryptocurrency.
However one development which is been plagued with issues, while simultaneously showing promise, are the introduction of Initial Exchange Offerings, or IEO’s.
Following a controversial first bite at the apple, Bittrex has decided to give Initial Exchange Offerings another try. The announcement came following the cancellation of the RAID IEO a few weeks ago.
The new funding model involves projects launching Initial Coin Offering on the prominent exchanges, giving investors a sense of security since a reputable intermediary is involved.
There were a couple of successful IEOs to date, such as Fetch.ai project which raised 6 million USD in 22 seconds and BitTorrent with 7.12 million USD raised in 15 minutes with the help of Binance Launchpad.
Bittrex stated that this is their last attempt of bringing IEO to life. VeriBlock (VBK) will be the first project to have a coin sale on Bittrex.
The exchange decided to cancel the RAID IEO due to significant changes in the business status of RAID. Specifically, the OP.GG, a company specialized in gaming analytics, terminated its strategic partnership with RAID. Considering how vital for success this partnership has been, Bittrex International has decided that it would not be in the best interest of their customers to move forward with IEO.
VeriBlock sale is set to take place on April 2, 16:00 UTC. The VBK project is aiming to “secure the world’s blockchains with bitcoin,” with its Proof-of-Proof consensus protocol that enables any blockchain to inherit Bitcoin’s unparalleled Proof-of-Work security in a completely Decentralized, Transparent, Trustless, and Permissionless manner.
The project has the support of many prominent figures in the industry. Currently, VeriBlock has received strategic investments from Bittrex CEO Bill Shihara, Ethereum co-founder Anthony Di Lorio, Bloq co-founder Matthew Roszak, and Fenbushu Capital general partner Bo Shen.
Bittrex clearly noted that its CEO Bill Shihara is an advisor to VeriBlock and that their company will benefit from the successful completion of the IEO.
The coin sale allocation is 70 million VBK coins, and the goal is 7 million USD. VBK coins will be offered at 0.10 USD per coin, with minimum purchase being 20 USD and a maximum capped at 20,000 USD. Orders above that amount would have to be submitted to the Bittrex OTC desk and are subjects to rules that apply for OTC trades.
Those that participate in the coin sale will receive coins on April 5, after the end of the Initial Exchange Offering.
If Bittrex succeeds in this endeavor, it will add its name to the growing list of exchanges that support a new, healthier model of fundraising. After the ICO boom which caused many to lose their investment, the IEO model could help restore the trust of investors and push the industry forward.