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WHAT’S NEXT IN CRYPTOCURRENCIES

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Introduction

Cryptocurrencies are digital currencies that are widely popular nowadays due to their versatile nature and decentralized framework that offers high security. The decentralized framework of cryptocurrencies is considered decentralized finance (Defi) which permits the user to purchase, borrow trade cryptocurrencies on a multi-layered architecture made from composable building blocks. More particularly, the decentralized finance (Defi) is a system where all the products related to finance are present on a public blockchain decentralized network that helps the user to purchase or sell, or conduct any activity relating to cryptocurrencies without any middle layer such as banks.

Several platforms promote cryptocurrencies by guiding people interested in how to invest in cryptocurrencies. With the rapid development in technology, what is the next phase of cryptocurrencies, till date it has been observed that when the price of cryptocurrencies decline, one use to buy the cryptocurrencies and when the price increase, people sell the cryptocurrencies which outcomes in high return price? According to some experts, cryptocurrencies are future money or currency, so one who invests in cryptocurrencies needs to know that’s the future of cryptocurrencies.

The initial exchange offering process is the next advancement in the domain of cryptocurrencies. According to the technical definition of initial exchange offering, it is defined as the processing of raising capital of an organization by selling some utility tokens on an exchange. Moreover, the exchange process in cryptocurrencies is conducted with conscientiousness for safeguarding the customer and their respective reputations due to to which the initial exchange offering is considered as much less risky investments. The companies conduct the initial exchange offering process by organizing a fundraising event on a widely popular fundraising platform that is specifically directed by an exchange wherein the person interested buys the utility tokens with funds directly from the exchange wallet.

The issuers of the utility tokens have to pay a charge for conducting the event of an initial exchange offering on the fundraising platform. Moreover, the issuers of the utility tokens also have to some percentage of sales during the event of initial exchange offering that helps the startup of cryptocurrencies to sell their token on the widely popular fundraising platform

Advantages of the initial exchange offering

Easy participation:

The participation in initial exchange offering is easy for the user because there is no need to handle the chain transactions with numerous wallets on different block-chains. The user only needs to create an account on the exchange with some amount of funds to participate in the initial exchange offering through a web platform that is highly trusted and ensures security. After purchasing the utility tokens, the initial exchange offering delivers a user base that is termed as “immediate userbase” from the user is able to see their product.

Reduced risk:

The initial exchange offering is considered as high belief value as these events are conducted on high-security platforms with much security, due to which there are fewer chances of fraud or any other risks.

Streamlined process:

The initial exchange offering is a streamlined process which step-by-step and regulations made by a third party that helps in smooth follow-up. Moreover, there is no extensive work in the initial exchange offering as these events are conducted by startups.

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