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WazirX, the latest IEO token to be released via the Binance launchpad has exploded in value during its first day of trading on the crypto exchange.
The shiny new crypto asset has now tripled in value in mere moments after trading went live on the platform. What does this mean for the future of the new IEO token, or will it fall to the same fate of the rest of the pack?
IEO Revival Hits Binance, Altcoin Triples in Value In First Day Trading After Launch
After the initial coin offering boom fizzled out due to red tape and risk imposed by regulators like the United States Securities and Exchange Commission, a void was left in the crypto market for investors who were eager to get in on the ground floor of a new altcoin project.
To fill this void and serve crypto market demand, Binance and many other crypto exchanges have launched initial exchange offering platforms designed to bring new coins to the market with additional backing.
Related Reading | Exchange-Related Tokens Dominate Crypto ROI Last Year
The idea is that because the new IEO altcoin has added support from a big name exchange, investors are less at risk for exit scams, and other issues arising from less savory founders and operations.
During 2019, IEO tokens exploded onto the scene with much hype, and even caused the native exchange tokens for each platform launching new tokens into the market, to increase in value due to rising demand.
Exchange tokens are required to be held for traders to gain access to these new token launches.
But while exchange tokens shined last year, the IEO tokens that were released are almost at complete losses now.
A former SEC chief even called IEO tokens “unregulated crypto-casino fundraising mutations,” which could have taken the momentum out of the crypto market initiative.
However, today’s launch of the WazirX token shows that IEOs may not be down for the count just yet.
What is WazirX and Why Are Crypto Investors FOMOing Into the Asset?
After the successful launch of the WazirX token, the asset tripled in value in the moments after trading opened for the shiny new altcoin.
Interestingly, although the token is built on Binance’s blockchain, the WazirX token is an exchange token itself, native to the WazirX platform – who call themselves India’s most-trusted Bitcoin exchange, according the to platform’s website.
Related Reading | Former SEC Chief Calls IEOs “Unregulated Crypto-Casino Fundraising Mutations”
The token will be used to “reward” the platform’s community for helping to contribute to its ongoing growth. Rewards include trading fee discounts, voting privileges, access to airdrops and much more.
Featured image from Shutterstock
