Before we discuss this topic, it is very important for us to understand the basic terms first.
What is and IEO?
IEO stands for Initial Exchange Offering. It is like an ICO run through an exchange. In ICO, instead of shares, utility crypto tokens are sold at a discount in return of cryptocurrencies to fund the project. Here the tokens are sold via a crypto exchange. It is more reliable than an ICO as it is regulated and listed. Instead of an ICO where only two parties are involved, IEO involves three parties, i.e. Projects – Exchanges – Investors.
Why IEOsare currently trending?
- Trustworthy: As it is listed on crypto exchanges, the chance of fraud is very slim. The exchange’s reputation is on the line, so they study each project very carefully before listing.
- Open to all exchange users: It is open to all the investors on the exchange as there are no eligibility criteria.
- Security: The exchange makes sure there are no frauds like hacking and theft. It is more secure than ICO, as it is regulated.
- Regulation: The exchange conduct KYC for its users to make sure it is genuine. The issuing company does not need to conduct its own regulation, as it is done by exchanges.
- Token liquidity: After the IEO ends the investor can easily sell their tokens through exchanges to liquidate the money. It is one of the major factors which makes IEO much better than ICO.
- Not restricted: It is not restricted in many countries like ICO. China and many other countries have restricted cryptocurrency trading and ICOs. IEOs doesn’t face this problem.
- Reward programs: It includes distribution of airdrops and bounties for the investors. Exchanges are airdrop friendly, and it encourages more investors to invest in the project.
- The benefit to exchanges: The exchanges receive listing fees from the issuing company. They also benefit from new users.
- IEO development: There are many IEO development and marketing companies which help the users to develop and market tokens. They provide IEO development services for a new project from scratch as well as an existing project. An IEO development company, thus is extremely beneficial for investors looking for one point solution.
- IEO solutions: There are marketing companies which provide IEO solutions to its users. If at any point, you need to start an IEO project, you can simply approach an IEO solutions company.
These are all the factors which makes IEO so much better than ICO and still trending despite all the odds.
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