What is IEO (Initial Exchange Offering)?

Due to the large number of scams and increased control of regulators, the once popular process of primaryCoin offerings (ICOs) have been replaced by Initial Exchange Offerings (IEOs).

An Initial Exchange Offering (IEO) is the process of selling tokens through a partner exchange rather than directly to investors.Thus, an IEO is managed by a crypto platform on behalf of a startup that is trying to raise funds by selling its tokens.

Any investor can participate in a public ICO, but tokens can participate in an IEOTo become a retail investor, it is enough to register an accountSince we have already discussed the main differences between ICO andIEO, in this article we will try to solve why exchange coin offeringsso dramatically gained popularity.

Advantages of IEO:

Investor Safety

Conducting an ICO of coins through a crypto platform requires mandatory expert assessment (due diligence), the exchange carries reputational risks.

During IEO, the exchange conducts a mandatory audit of KYC and AML, which adds an additional layer of investor protection and makes it difficult for illegal investors to participate.

Security for startup projects

Startups enjoy a reputation and customer base.platforms. Coin issuers are exempt from listing fees and a percentage of the placement of tokens on the platform, which significantly reduces the marketing budget.

Coin liquidity

The exchange automatically includes the tokens offered for sale in its listing, providing the possibility of selling coins later.

Ease of buying coins

Participating in IEO is easier than participating in an ICO. Instead of going through certain stages of each individual ICO, it is enough to follow the standard procedure for buying and storing tokens on the exchange. In many ways, the platform standardizes the process from offer to offer, and establishes the terms of purchase.

IEO technically remains a form of ICO, but the main difference is on which platform the coin is offered.The world's largest exchanges have already launched their IEO platforms: