How Do You Use an IEO Platform? A Practical Example

10 Oct 2019

Initial exchange offerings (IEO) have taken the limelight in 2019, picking up where initial coin offerings (ICO) left off; with a slight shift in the paradigm. 

One of the most significant variances of this new trend is the peace of mind it offers. In contrast to its ICO predecessors, tokens sold under and IEO are almost always guaranteed a listing; something which often couldn't be secured with an ICO. Moreover, the exchange offering the sale sees enough potential in tokens' longevity and success, that it chooses to stake its reputation on it.

In regard to safety, IEO's often represent a more reliable vehicle for investment as they negate the need for a smart contract, as per ICO's. Instead, within the IEO model, the investor only needs to submit to a simple registration and exchange of funds.

With the growth of this neoteric form of crowdfunding, the market is becoming saturated with IEO platforms. However, selection depends heavily on which token sale you wish to partake in. Various tokens, each with unique use cases are issued through a plethora of exchanges.

99Ex, is one such platform run by crypto market professionals, boasting one of the first nodes of the leading cryptocurrency exchange, OKEx, on its website. As such, 99Ex utilizes many of the features of OKEx, sharing in the transaction depth and liquidity of the renowned platform, as well as harnessing its 24/7 customer service for financial and tech support.

Several months ago 99Ex expanded upon these features to include a token sale platform, dubbed, as well as an exchange token, known as 99B. Since then, it has hosted successful exchange offerings.

How Do You Use an IEO Platform?

Participation in an IEO on 99Ex is relatively straightforward; once registered, users must complete know-your-customer (KYC) Level 2 certification, which requires the upload of a photo ID. After certification, users may choose the token sale they wish to participate in.

After selecting which IEO to join, users choose how many tokens they wish to purchase using denominations of Tether´s USDT.

To keep things fair and avoid the issues associated with a first-come-first-served model, SpaceStation operates on a lottery-based system. In this model, token allocation is based on how many of the exchange token, 99B, a participant is holding. In order to qualify for the sale, user accounts must maintain a minimum of 5,000 99B.

99Ex SpaceStation’s Model

To increase the chances of winning, investors are encouraged to hold more 99B. Every day a snapshot of user funds will be taken to ensure that holders both have the required amount of 99B, and have held it for the expected 3-day period. Daily snapshots of user funds will determine the participant's chances of token allocation. 

Chances of winning are calculated by how much 99B a user holds, and how long they have kept it in their account. For example, participants who hold 20,000 99B for three consecutive days, have the highest chance of securing their desired token allocation; approximately five times higher than those containing the required minimum of 5,000 99B.

Each token sale lasts 30 minutes. Once the results are announced, the tokens will be issued directly to the user's account wallet; with a corresponding amount of USDT deducted. The remaining USDT will then be released from escrow and refunded.

IEOs look set to proliferate in the coming years, replacing the relatively antiquated ICO model. Head over to 99Ex’s website to find out more about the exchange and the company’s IEO platform.

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