Crypto Exchange Gate.io’s First IEO Sale Attracts $3 Billion Worth Of Orders For Its Token
Gate.io, among the largest crypto exchanges in the world, has recorded orders of about $3 billion in the first phase of its seven-day exchange token sale.
The firm announced this in a blog post, confirming that the sale was an initial success.
Gate.io offers a crypto-only platform and currently wants to raise funds towards additional projects via the sale of its Gatechain Tokens (GT). As per the exchange, token holders will utilize the acquired tokens to pay for trading fees.
The first phase of the in-house sale rolled out on April 8 and ended on April 14.
The GT tokens aren’t created yet, but the exchange is giving out its “Gate.io POINTs,” which buyers will be able to exchange for GT at 2.5 points to 1.
Unconfirmed figures quoted by crypto publication Coindesk claimed that the platform’s phase one trading fees amounted to $64 million. The new exchange crypto GT will make up Gate.io’s blockchain project dubbed Gatechain.
The ecosystem is planned for release in the fourth quarter of this year.
The system works similarly to that offered by Binance called Binance Chain and is offered as an initial exchange offering (IEO).
The project has attracted a great deal of interest from enthusiasts and continues so despite there the lack of tokens or capacity for users to validate the existing progress.
According to the company, the distribution of GT’s is “entirely public and transparent.” As such, there is nothing like an initial coin offering or private sale. There are also no tokens distributed to the exchange’s team or offered in a pre-order.
Likewise, there are no tokens reserved for institutional investors.
The IEO is now in its second POINTs sale stage, with the focus being on individual buyer groups. The sale’s entry currency is Tether (USDT), has seen a surge in interest since the public sale began. The huge demand then forced token seekers to part with top money to lay their hands on the tokens.
The sale has thus elicited a lot of interest in places like China where users are willing to pay premium money to get the USDT token as the POINT sale entry. The result is a rise in the over-the-counter (OTC) sales of the token.
A similar IEO attempt failed to attract interest from the public, with the Bgogo exchange being criticized for trying to offer users access to tokens by blockchain platform Algorand. The attempt was reportedly being offered without the express authorization of the Algorand team.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.