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A blockchain project founder says a crypto exchange swindled him, and it points to a broader problem in the IEO market
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Quick Take
- Cryptocurrency exchange Coineal recently canceled an IEO for blockchain security company CYBR, whose founder now claims that Coineal faked IEO sales volumes and scammed them out of listing fees
- Companies seeking an IEO are regarding it more and more as a marketing opportunity rather than fundraising venue, as some exchanges charge high listing fees and use the funds raised from IEOs for marketing campaigns
- IEOs replace ICOs as the latter have lost steam amidst pervasive frauds and scams. However, exchanges that conduct IEOs may still expose investors to risks as they reportedly pump token sales volumes to attract investors
On day two of his company’s initial exchange offering (IEO) on the cryptocurrency exchange Coineal, founder Shawn Key felt incredibly optimistic. He had paid Coineal 11.5 BTC (around $76,590) for his little-known token, CYBR, to be listed, and a large order just suddenly bumped the sales to around $2.1 million, or approximately 40% of the […]
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