Bitpanda Launches BEST IEO
July 20, 2019 by Jack Anderson
Vienna-based company Bitpanda is currently launching its own Initial Exchange Offering (IEO). While many know what an Initial Coin Offering is (ICO), the IEO concept may need to be explained.
An IEO is a fundraising event that is administered by an exchange. In contrast to an ICO, where the project team themselves conduct the fundraising, an Initial Exchange Offering means that the fundraising will be conducted on a well-known exchange’s fundraising platform, where users can purchase tokens with funds directly from their own exchange wallet.
The ICO fever in 2017 proved to be a very high-risk environment for individuals wanting to participate in new blockchain project token releases, from accidentally sending funds to the wrong wallet, or some project teams absconding with funds.
For a user, an IEO is easy to participate in as they don’t need to manage on-chain transactions with different wallets on different blockchains. Instead, a user only needs an account on the exchange and some funds in their account and can participate completely through the trusted Website’s interface. Additionally, the exchange is staking its reputation behind the projects on its platform, offering a higher degree of trust behind the project.
For a project looking to raise funds, an IEO offers the promise of an immediate userbase that can see their product, and depending on the size of the exchange’s audience, could mean that the project can reduce their outside marketing funnels for fundraising, allowing them to focus only on the development of their product.
Named BEST for Bitpanda Ecosystem Token, the token is being launched in multiple phases. In the first one, which started on July 9, Bitpanda verified users were able to purchase BEST tokens for 0.09 EUR. That phase ended on July 16, in which the token price raised to 0.095 EUR. Starting July 23, the token price will once again increase to 0.1 EUR, and staying there until August 8 – day of the official release of the new Bitpanda Global Exchange and the release of BEST to the public.
So far, the Austrian company was able to raise more than 25 million euros.
Later on, Bitpanda will offer some additional tokens to its members through various Airdrops, a system where users get more tokens for free. Inside sources told us while preparing this article that it could reach at least one percent of each initial member's BEST portfolio.
500,000,000 tokens are available through the IEO, until which the token will have a liquidity of 1 billion tokens. Over time, users will be able to use their BEST tokens to get discounts on Bitpanda products. When that happens, 25% of the tokens will be burned. At the end of the process, 500,000,000 tokens will be destroyed, possibly increasing the price of the token by reducing its supply over time.
Will BEST become one of the BEST tokens on the crypto market? Only time will tell.