An IEO is a fundraising event administered by a cryptocurrency exchange on behalf of a token issuer. Token issuers tend to be new blockchain startups that are seeking to raise capital. They typically pay the exchange a listing fee and percentage of the tokens sold through the IEO.
In return, the exchange is obliged to sell the newly-issued tokens and later list the token on the exchange after the fundraising event’s conclusion. This arrangement incentivizes the exchange to market the token and may also gain it exposure as the project markets their IEO being run on their exchange.
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