What is IEO – Initial Exchange Offering?
A lot of us are quite familiar with ICO. However, we are yet to familiarize with IEO, that stands for Initial Exchange Offering. Even if you have heard it, there still is confusion if it is similar to ICO or if that really has anything to do with ICO at all. If this is where you are standing, (may be a bit vague) this blog will clearly walk you through what is what in an IEO and primarily what an IEO exactly is.
You must be aware that ICO enables the crypto projects or the relevant tokens to launch independently without having to undergo the traditional venture capital methods. In IEO, the teams that aim to gain capital can launch the tokens on the exchange platforms. Though this might seems like a lengthy process, Initial Exchange Offering has its own benefits.
Now, before we further step onto the benefits, let’s dive a little deeper into what IEO is.
- IEO is the same token sale but held on a cryptocurrency exchange platform.
- The exchanges establish a space where the developers can earn a good sum and the investors can buy the projects.
However, prior to the token sale event, the exchange platform and the token developers come to an agreement. The exchange platform verifies the authenticity of the token developers and finally allows them to conduct the IEO on their platform. However, there will be certain rules and regulations that the token developers will have to agree with before finally launching their IEO.
Here is how to participate in an IEO
- Participating in an IEO is easy if you have an account in the exchange platform.
- However, you are required to complete the Know Your Customer screening.
- You may not be eligible if you are from any of the restricted companies.
- Once you are done with all these procedures you can participate in IEO.
What are the benefits of doing an IEO on an exchange platform?
- The token developers can take full advantage of the existing user-base that the exchange offers them while signing up.
- Many people can take part in the crowdfunding process by using the power of exchanges.
- This paves the way to eliminate the scams that are a major drawback in ICO.
- Since the crowdfunding takes place on the exchange platforms, there are lesser chances of investors losing their money to scammers.
The benefits are a lot more compared to ICO.
If you are looking for an IEO development company, then you’re already in the right place.