WHAT IS IEO?
An Initial Exchange Offering, commonly referred to as an IEO, is a fundraising event that is administered by an exchange. In contrast to an Initial Coin Offering (ICO) where the project team themselves conduct the fundraising, an Initial Exchange Offering means that the fundraising will be conducted on a well-known exchange’s fundraising platform, such as Binance Launchpad, where users can purchase tokens with funds directly from their own exchange wallet.
The ICO fever in 2017 proved to be a very high-risk environment for individuals wanting to participate in new blockchain project token releases, from accidentally sending funds to the wrong wallet, or some project teams absconding with funds.
Advantages of IEO
- Limit scam projects: Each exchange has a team specializing in analyzing projects that want IEO before putting it on the token offering floor of that project, so projects with signs of a scam are difficult to get a chance.
- Take advantage of the exchange’s users: Binance as an example, this exchange currently has about 10 million users, with this huge number of users, the IEO project will reach a huge set of customers.
- Take advantage of the prestige of the exchange: for example, with Binance, which is a leading cryptocurrency exchange, any project implementing IEO on Binance has more prestige assurance from this exchange, increasing the confidence of investors in the project.
- 99% of tokens will be listed: This is almost certain. All IEO projects will be supported by the token listing support exchange to trade, which helps to increase the value of tokens, trading volume, at least in the short term.
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