Initial Exchange Offering is a fundraising program that is launched by a crypto exchange in favor of a startup. This emerging technology of coin offering involves the creation/use of new crypto coins that can be sold to raise funds for a new project. IEOs are similar to ICOs (Initial Coin Offering) in many ways. Both act as the medium for projects trading in cryptocurrency to collect funds. Yet, IEO is more secure & reliable than ICO.
ADVANTAGES OF IEO
Earlier, ICOs were widely used for fundraising worldwide. The reasons to shift from ICO to IEO is that IEOs have numerous advantages, say additional standards & regulations, over ICOs. Let’s learn about the advantages of IEO.
In IEO development, tokens are endorsed by a third party and so it’s a huge relief for both the investor and the startup offering the idea. The primary play of an exchange is to source quality projects.
The crypto exchanges are designed with two main goals. One is to bring in a profit and the other is to guarantee the value of the investments. But actually, exchanges put in their efforts to render a bit more certainty for IEO tokens by acting as caretakers and fixing higher industry standards for IEO participation.
So, it is evident that the exchange organizers consider IEOs as a more hands-on approach to ICOs. In addition, investors will directly deal with the exchange without the involvement of the token provider because of the fact that platforms provide wallet service for the tokens and ease trading.
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