An IEO (Initial Exchange offer) is still technically a form of ICO, but the main difference lies in where the coin or token is offered. As you can guess from the name, an IEO offers tokens through a joint exchange, not directly to investors. Instead of giving the developers money to a crypto exchange that works with them, instead of the project team giving you some tokens directly, you get them from the crypto exchange platform.
Since the token sale is done on the exchange platform, token providers have to pay a listing fee along with a percentage of the tokens sold during the IEO. In contrast, crypto startups sell tokens on exchange platforms and list the coins after the IEO ends. As the cryptocurrency exchange receives a percentage of the tokens sold by the startup, the exchange is encouraged to aid the marketing operations of the issuer.
What are the advantages of IEO?
One of the biggest advantages of IEOs is trust. The audience scans any project that wants to launch an IEO on the counterparty website while running on a cryptocurrency exchange platform. Exchanges do this to protect their good reputation by carefully scrutinizing the token issuers.
Hence, IEOs can save scams and questionable projects from raising money through cryptocurrency exchange platforms, and it becomes much more difficult to defraud with IEOs.
In some cases, buying to an IEO may actually be easier than an ICO. Instead of going through the specific steps of each ICO, simply follow the standard procedure for purchasing and storing tokens from the given exchange. In many ways, the exchange standardizes the process from offer to offer, as it sets the terms of purchase.
WHAT ARE THE DIFFERENCES BETWEEN ICO and IEO?
IEO is an exchange platform, while the ICO acts as the website for token issuers.
-ICO may differ between different projects. IEO directs exchange users according to AML (Risk Management) and KYC (Customer Recognition).
While personal sales are provided by the developers in the project in the ICO, these transactions can only be provided through crypto money exchanges in IEO.
-ICO has to raise money by attracting the attention of users through high projects to meet the market needs of companies. IEO, on the other hand, can only earn direct profit from stock exchange sites.
– For my personal after-sale token list transaction, the ICO must reach the exchange itself; IEO can be accessed from every stock market site on which it is listed.