IEOs Intro: “What, Why and How” Are We Going to Learn About IEOs?
IEOs: Initial Exchange Offering (IEOs)
In simple terms, it is a token sale supervised by a cryptocurrency exchange. They are only exclusively available for the exchange’s users. Some of them may take place in several exchanges. Like ICOs, they allow you as a new investor to get cryptocurrencies or tokens while raising capital for promising projects.
Exchange backed ICOs have been a thing for a while now but IEOs only gained traction after Binance Launchpad was introduced. There have been about 50 IEOs at the time of writing this and they have raised about $159 million collectively.
Where ICOs may not have much to back up the claims of the people asking you to invest, IEOs put the exchange’s credibility as the stake. The vetting process here is more serious. Not every idea gets backed by the exchange.
IEOs Intro: “What, Why and How” Are We Going to Learn About IEOs?
We are going to learn about IEOs because of how stringent they are when compared to ICOs. They have a more rigorous process which makes it easy for people who want to invest, to get information about what they are investing in.
The token sale team in this one is less likely to face repercussions that may be caused by the checks done by KYC/AML for exchanges that deal with this kind of thing. They too have a limited number of tokens or coins offered at a fixed price. Unlike ICOs, the IEOs have already minted coins before selling to the crowd.
Normally, they hot exchanges several days or weeks after the IEO and that makes it easy for you as an investor to attaining instant liquidity. They have an intermediary (IEO platform) to handle the funds. This is something that raises investor confidence and ICOs do not have much of that.
