Most startups, as well as seasoned companies, fear that ICOs/IEOs could end up not raising enough money as hoped. However, with the current trend in ICOs/IEOs, companies are finding it easier to raise sufficient funds through ICOs and IEOs, which can be attributed to the fact that investors have found it to be a promising way to invest their money.
In Mid-May, Bitfinex, a prominent crypto exchange platform, announced through its project CTO, Paolo Ardoino, that they had raised over $1 Billion both in soft and had commitments. This goes a long way to prove that no amount of money is too much for an ICO/IEO.
Bitfinex IEO token sale involved its own LEO tokens, which have already been listed in a number of exchanges like ZB.COM, a Chinese based crypto exchange, and Delta-Exchange among many others.
The $1 billion funds will go a long way in financing the company as it faces a legal battle concerning the missing $850 million.
According to Ardoino, the investments mainly came from private companies who contributed over $100 million each and Users who invested over $1 million each.
Originally, Bitfinex had planned to do a discretionary public phase of the IEO in case the funds raised within the 10-day private token purchase window did not raise enough funds. But as it stands, this ended up being a record-breaking IEO which pretty much seems it will not go to the public face after raising such a huge amount of money in the private face.
This shows how effective ICOs and IEOs can be when it comes to collecting funds for Silicon Valley startups and companies.