Initial Exchange Offerings – Igniting Exchange Coins

March 26, 2019

 

In recent weeks 3 exchange coins, in particular, have seen spectacular gains and the good news is – this might be just the beginning.

 

 

Binance 3 Month Chart – up 232%

 

 https://coinmarketcap.com/currencies/binance-coin/


 

 

Huobi 3 Month Chart – up 115%

https://coinmarketcap.com/currencies/huobi-token/

 

 

KuCoin – 3 Month Chart – up 163%

 https://coinmarketcap.com/currencies/kucoin-shares/

 

The theme that binds these three coins beyond being exchanges is the recent issuing of exchange offerings. These Initial Exchange Offerings (IEOs) function very like an Initial Coin Offering (ICO) and have generated a lot of enthusiasm for the exchanges hosting them. Critically, IEOs offer a use case for the exchange token beyond simple speculative exchange volume trading. The exchange could stagnate in terms of coin pairs and volume but the exchange token could continue to accrue or hold value as a medium for IEOs (think Ethereum 2017).


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A quick comparison of project fund-raising would seem to favour the exchange model.

 

 Source: TIMM

 

More in-depth information on IEOs can be found here.


 

Caveats


This may well be a bubble and fizzle away as launched projects fail to deliver promised products.

The IEOs themselves have not proven good investments post-launch – only pre-sale investors have seen positive returns.

 

Investment Thesis


All three exchange coins are a buy on a dip recommendation. The market is currently poised with BTC set to move significantly in either direction in the coming weeks.

I already hold these coins but I’m looking to add more on a dip.

 

                       Entry / Target / Stop  (BTC values)
Binance – 0.00381 / 0.0099 / 0.0024

KuCoin – 0.0003 / 0.00049 / 0.00018

Huobi – 0.00051 / 0.00078 / 0.00029

 

I’m not being ambitious here and may review my exit points in the coming weeks.

I’ve left loose stops to account fo pending market volatility. If I do get stopped out – I’ll likely be looking to buy back in if the fundamentals of IEOs remain supportive.

If I were to choose only one, it would be BNB as the coin has more supportive fundamentals than the other two exchange coins.


Remember this is just my subjective opinion. Verify, don't trust. Research is the best defense of your capital and future investment success.

 

Also posted on TIMM.

 

 

 

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