ICO (Initial Coin Offering) is a funding mechanism that is trending in developing business entities, but IEO (Initial Exchange Offering) is positioned as the successor to ICO. An IEO is also a token sale, like an ICO, but is fully moderated by a crypto exchange.
IEO, how to buy it, investors have to be a part of the exchange and can buy or sell using a registered account, whereas ICO, you can directly buy and pay to owners via their wallet address, IEO basically serves as a secure medium between crypto projects and investors, IEO has many benefits.
Investor Confidence |
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- IEO is the trust of users or Investors, the cryptocurrency exchange platform carefully analyzes each project before listing their tokens on the market or exchange, lowers the risk of fraud and dubious projects on each exchange, which ensures credibility and reliability for investors and helps them safely process business.
Security |
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On the one hand, it is in the interests of investors that the IEO protects to ensure that no malicious companies are listed, on the other hand, because the exchange handles the KYC/AML process, companies can rest assured that their tokens are only purchased by real investors.
And IEO comes with required regulations and KYC or AML verification, which provides top-class security for verified users.
Reduce risk |
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Token-issuing startups would benefit from an easier, streamlined and flawless, relatively straightforward process of launching IEO on an exchange platform than the classic ICO model where they have to do everything themselves, possibly to the detriment of fundraising organizations they have paid to exchange.
However because the exchange can market it for them, the marketing budget is relatively lower, and because the exchange already has an existing customer base, they don't have to start from scratch on day one, so there is no chance of fraud. happen, unlike ICOs.
Strategy |
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ICO companies have to go through the task of listing their tokens on an exchange, when it comes to IEO, the exchange itself manages the coin listing after the crowdsale ends.
There are instances where the registration fee is 20 bitcoins and the exchange has asked for a 10% discount on the tokens, in all of this, the relative ease of the whole process won a lot of profit points in the strategy for IEO, IEO opened increasing market exposure, credibility and encouraging more users to the project by gaining trust and interest.
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@dani0661
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Beautifully differentiated ICO's from IEO's love how details you have provided in this article, great content. Keep sharing quality content 👍.
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Thank's
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Such a great content about ICO vs IEO. Definitely many important information you have shared to learn....
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Thank's
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