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News from the Crypto Valley: Polkadot launches “Initial Futures Offering”

July 16, 2019 at 2:15 PM | By Jit Sutradhar News

Polkadot, a startup from the Crypto Valley in Zug, which is under the wing of the Web3 Foundation, announces a so-called Initial Future Offering (IFO). What is hidden behind the term and what role CoinFLEX plays.

The image damage that ICOs have done for the sale of utility tokens is irreparable. About 80 percent of the projects can simply be described as fraud. The topic ICO is therefore passé. If you look closely, you would have to recognize that the new edition of this capital vehicle, the so-called Initial Exchange Offerings (IEOs), the old concept, although a new coat of paint, the basic problem but have not changed.

And as if there are not yet enough unregulated ways to get his tokens to the man or the woman, comes the crypto option exchange CoinFLEX with a new concept. Introducing: Initial Futures Offering (IFO).

This is nothing more than a token sale for crypto-tokens that does not exist yet. Hence the “Futures” in Initial Futures Offering.

Polkadot as First Mover

CoinFLEX already has a first project in the pipeline; we’re talking about Polkadot’s DOT token. And so CoinFLEX hosts a heavyweight in blockchain. After all, Polkadot is the first project of the Web3 Foundation, a Swiss foundation that focuses on the promotion of a decentralized Web 3.0. At the center is none other than Ethereum ex-CTO Gavin Wood. The honor of the First Movers deserves this once again a start-up from the atmosphere of the Zug “Crypto Valley”

Polkadots IFO will then start tomorrow, Wednesday 17 July. If you have already participated in the FLEX Token Sale in advance (FLEX is the BNB equivalent on CoinFLEX), then you are very happy. Because exactly 300 FLEX-Hodlern grants CoinFLEX a discount of 25 percent on DOT. A unit of the native Polkadot token costs therefore “only” 75 US dollars.

However, to reach the ambitious goal of a $ 1.2 billion valuation, DOT’s price would subsequently have to rise to at least $ 100.

IFO, IEO, ICO, STO, please what?

CoinFLEX is a US start-up in which well-known investors such as Roger Ver and the venture capital group Polychain Capital have invested. In January, we reported on the race between CoinFLEX and Bakkt to be the first to launch physical Bitcoin futures. According to CoinFLEX, these are currently tradable on the platform.

But you have to say it very clearly: CoinFLEX does not reinvent the wheel with Initial Futures Offerings. Like IEOs, IFOs are unregulated financial products. While Security Token Offerings (STOs) must provide securities prospectuses, investors are exposed to the risks of IFOs without any protection.

“We build futures on coins that do not exist yet,” CoinFLEX CEO Mark Lamb praises his project on Youtube . It sounds more like warning than advertising.

image via Shutterstock

 

Article Source: https://www.btc-echo.de

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