The cryptocurrency industry gets older but does it get any wiser? Green candles have begun popping off across the board for the first time in a long time and suddenly it feels very 2017, complete with all the greed, FOMO, and manipulation that was synonymous with that era of excess. Never is this more evident than in the realm of initial exchange offerings (IEOs), where people are taking drastic measures to gain crowdsale admittance.
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10 Seconds Is the New 10 Minutes
In 2017, selling out your crowdsale in 10 minutes was grounds for bragging rights. In 2019, the benchmark is 10 seconds. Thatâs how long it took on Wednesday for Veriblockâs IEO to sell out. A video showing an Asian trading group competing to enter the Veriblock sale the moment it went live has gone viral. Getting into the hottest IEOs this month is an achievement on a par with gaining entry to the Telegram ICO. In American Psycho terms, initial exchange offerings are Dorsia: the hippest new restaurant where everyoneâs trying to get a table.
So I was still wiping my ass while competing with these group for the Veriblock sale on Bittrex
— Lord Catoshi (@LordCatoshi) April 2, 2019
The parallels between two years ago and now are overwhelming. Just as in 2017, people bought into ICOs on FOMO and fundamentals, todayâs IEOs are all about the platform issuer rather than the project. If itâs on Binance, Okex, Kucoin, Huobi, Bitmax, or Bittrex, itâs guaranteed to sell out in seconds and to pump when it reaches the main exchange. Who cares about the tokenâs utility when thereâs instant liquidity? As one trader lamented after failing to get into the Veriblock IEO, if you linger long enough to read the terms and conditions, you donât get in.
Itâs All About the Games
2017âs peak ICOs were subject to gas wars, in which whales would push through enormous transaction fees to ensure they were first in line for ERC20 tokens. This year, the games take place offchain, with aspiring participants contributing within the walled garden of centralized exchanges. Gas wars are no longer a thing, but that doesnât mean there arenât those willing to game the system.
âWTB script for kucoin-multivac, money goes to escrow if i get in,â read one post shared in a Telegram channel this week. âEscrow transfers. PM with offers #multivac #kucoin #script.â Assuming that individual was unsuccessful in their request, itâs unlikely they got into the Kucoin IEO through organic means: todayâs Multivac IEO sold out in seven seconds. The musicâs got to stop at some point, but for now, initial exchange offerings can do no wrong.
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