Exchanges doing IEO now are breaking securities law?

(Mao Mao) #1

Just a thought… all those exchanges doing IEO now arent approved by SEC.

These exchanges are merely just choosing projects to do IEO based on their internal analysis without legal reviews imo.

Will that mean that these exchanges will have a harder time to get “compliance” licenses approved or even smoother approval for future applications?

How will it affect the future of those exchanges?

What are your thoughts?

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(Oldsport) #2

I’m still trying to figure out what exactly is an IEO. Initial Exchange Offering, sure, but what does it mean?

Is it when an exchange creates a token to raise funds? But for instance Gate[dot]io also seemed to propose existing ICO tokens for their first listing. Does this mean Bitfinex will do the same?

Gotta say I’m a bit lost. Only thing I can say is Nash feels like the only exchange not trying to screw its users!

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(Agile) #3

If I understand correctly an IEO is no different from an ICO, except it’s run by an exchange. E.g. Binance’s Launchpad.

(Oldsport) #4

That’s not my understanding. For instance, Ocean Protocol had its own ICO, then did an IEO on Bittrex. Here’s someone saying how it ended up being a disaster for ICO investors:
Gateio is doing the same with other ICOs. Now I hear Bitfinex wants to do IEO…?

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(Mao Mao) #5

From my understanding, its just a platform for “investors” (who trust the exchange) to “participate” in the IEO that they have “trust” in that exchange, instead of doing the Ethereum smart contract way that scammers can just create a sleek looking website with promises then ask for funds.

The exchange that did their “analysis” on the IEO projects doesnt mean the projects arent scams or won’t fail… the exchanges are a business that look for profit, so i would add in the fact that exchanges would allow scammers to conduct their “IEO” on their exchange in return for money.

But the concern here is, are the exchanges regulated or certified or verified by regulators enough to conduct “IEO” on their exchange??

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(Winterfell) #6

I don’t know why people focus on SEC all the time, SEC has no legal authority outside of USA.