What is an Initial Exchange Offering (IEO)?

An IEO mainly takes place once a new cryptocurrency project wants to launch its cryptocurrency or blockchain product, and needs relevant investment capital to do so.

Difference between ICO and IEO

IEO differs from an Initial Coin Offering (ICO) in that it is facilitated by a cryptocurrency exchange such as Binance. Projects can raise funds from the exchange’s clientele and start their token business shortly thereafter.

There are or remain in developing a huge number of cryptocurrency and blockchain projects.

Attempting to raise funds from venture capital (VC) organizations can take a long time, with little or no results. Furthermore, it is feasible to produce pieces of a plan before launch, something called “pre-finished,” and keeping them in the box, however, commonly creates criticism from society.

Why an IEO?

Generally, opting for an IEO could be an eye-catching alternative, continually that the inventor has a strategy for action and is committed to achieving the plan’s prospect.

As the name indicates, an initial barter offering (IEO) involves utilizing a cryptocurrency exchange to raise funds for a new plan. It is quite common to exchange assets on such platforms, however, this mainly only happens after developers have raised funds to launch their projects.

Conclusion:

With the support of an exchange that enables the trading offer, registered users who have provided their KYC information are going to be able to get the background tokens to start trading on the open market.

Once developers of a cryptocurrency scheme decide that they want to host an IEO, they have to go through a complex process before they can raise the first dollar.

However, they have to establish whether their initial barter offering is going to have a “higher cap” or a “soft cap.” A “soft cap” institutes an initial target to be achieved, but makes it possible to integrate more shares thereafter.