2017 & 2018 being the year of ICO, has come up with huge benefits in the crypto industry. But the truth is people have started pacing towards a new strategy named as Initial Exchange Offering. Crypto Enthusiasts across the globe suggest this neoteric alternative for ICO since it is feature-packed with boosted-benefits.
The ICO model allows the project to bootstrap themselves without the need of going through traditional venture capital without funding. While on the other hand, IEO enable crypto projects to fundraise directly on digital exchanges!
One of the most hyped news of recent times is one of the AI projects has raised around $5.5 million in just 22 seconds on Binance with IEO!
The next five minutes will make you clear of all your queries regarding this platform!
What is IEO Initial Exchange Offering?
An Initial Exchange Offering is a token sale hold on an exchange. IEO works on different cryptocurrency exchanges depending on how it gets planned. The exchanges create a platform where the pool of developers can mint and sell the projects to crypto enthusiasts and investors!
Before the token sale gets conducted on the IEO exchange platform, both the exchange team and the project team will deal with an agreement. The exchange platform will do a thorough review of the project using certain conditions to make sure the project is worthy authentic.
Once the exchange platform is comfortable with the project, it will unveil the date for token sale along with the fixed price per token. If in case the exchange has its own token, then the contributors have to purchase the units of tokens before they can participate in Initial Exchange Offering.
IEO Vs ICO! What would be the difference between IEO and ICO?
If you are planning launch IEO as your platform you will definitely have this question circulating in your mind!
Here are the primary difference between both!
So, How to launch IEO?
You can invest in IEO’s by just having an account on a participation exchange. However, you need to pass their Know Your Customers screening and should not be from the restricted country. Once you complete all these, you can initiate investing in IEO.
Additionally, IEO’s are more user-friendly than ICO’s. All you do to partake in IEO’s is just to create an account on the exchange which supports the token sales, funds your wallet and purchases the token when it goes live.
Why Initial Exchange Offering is preferred?
Huge advantages for Crypto Investors has been the major reason why IEO’s are preferred and an alternative for ICO. Apart from being able to trust the crypto exchange to be as safe intermediary is the simultaneous listing of coins since the exchange acts a kind of partner organization.
If you aren’t sure of which people to invest, anyone can invest rather than it is restricted in the country. As discussed, once you complete all the formalities which are stated above, you will be given access to the sale.
However, countries such as the United States, China, Venezuela, New Zealand, North Korea, and many other countries are barred from participating. One more thing is, the rules and regulations may change from one exchange to another but the basic steps for the users will remain the same.
Advantages/ Benefits of IEO:
By hiring the right IEO developers you can avail the appreciable benefits from their end.
Change is the path to a better market. IEO benefits are too good to be ignored by increasing the level of trust among cryptocurrency projects.
Developing an IEO is not going to be a tedious process. But the truth is only few Blockchain Development Companies have ventured into IEO development. The reason behind this is there is a limited knowledge spread on this to the crypto people.
It is still in the growing phase and can be a reap of profit for the traders in the future!
If you ask me whether IEO is the alternative for ICO? Absolutely yes! IEO will be the future in the crypto industry which cannot be denied!
Please share your thoughts in comment section!
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