Initial coin offering (ICO) has been discussed in the city in the last few years. However, this is slowly losing its appeal, thanks to how startup or companies move their fundraising process.
Initial coin offering (ICOs) are not new. The first ICO was taken by the Mastercoin in 2013. It got popularity during the Cryptocurrency Boom in 2017 when startups or organizations tried to raise money for their own ICOs. Some ICOs are immediate hits, while others struggle to raise enough money. One of the largest ICOs is EOS ICO, which raised $ 4 billion in 1 year.
But, it became very fast old. Meet Initial exchange offering (IEO). So, what is an IEO? Please have a look on below article:-
What is an IEO (Initial Exchange Offering)?
Initial exchange offering (IEO) is a step by ICO. The main difference is the method of distribution. The IEO uses the Exchange (S) as part of their token delivery model. The first process involving the token placement and then distributing them in the exchanges. Again, there is an agreement between developers and IEO which is similar to the agreement developed in ICO.
The agreement ensures that the distribution is done in a controlled manner. For example, developers can set a limit on how much a token can get or the initial price of the token.
The IEO provides more flexibility because it allows the contributor to be in greater control over its expenditure. In ICO, the Contributor needs to send Ethereum to a smart contract, whereas in the IEO, a Contributor needs to create an account in an Exchange and make purchases there. It gives better control to the contributor and ensures greater confidence in the whole process.
The use of IEO (Initial exchange offering) means that countries like China are also making contributors available for fundraising. Chinese exchange, CoinBene is doing its first Initial exchange offering (IEO) Temco. Temco is a logistics and supply chain project.
Another project that is catching up with their IEO is NuMoney Exchange, which is raising funds to improve liquidity on its exchange.
If you want to list your IEO (Initial Exchange Offering) in our IEO Initial exchange offering calendar page then Click Here
Advantages of IEO (Initial exchange offering)?
IEO has many advantages. First of all, only good tokens are delivered through an exchange because it is directly or indirectly related to the reputation of the exchange. This is a better token listing.
Exchanges also benefit from complete setup, as well as creating a trustworthy relationship between exchanges and developers. In addition, it is easy to implement IEO as assuming that there is a large difference distribution method. The IEO is also more stable and secure than IOC, which is open for fraud and scandal.
To a successful IEO, the Exchange needs to do the right things. They also gain access to exclusive market access, power of conversation and so on. Exchanges also provide better liquidity than conventional ICO, where after the fixed period the tokens are listed in the exchanges. The exchange also offers better user interaction for a user-friendly interface. It enables new users to interact with IEO and contribute to the project of their choice.
Disadvantages of IEO (Initial exchange offering)?
Initial exchange offering(IEO) is not free of flaws. It comes with damage. For example, buyers need to bear the expenses related to exchange, i.e. exchange fees and other associated fees. Apart from this, the organization of the IEO has to deposit the exact amount of listing fees in order to bear all the expenses made by the exchange.
Another disadvantage is that marketing costs have to be borne by the issuers of the token, which make huge increases in overall costs. The estimated number indicates that the token listing fee should be at least 20 BTC, while the marketing cost can be between $ 80K to $ 150K, despite the popularity or quality of the exchange.
How to participate in IEO (Initial Exchange Offering)?
As a contributor, you have to follow a specific set to participate in the initial exchange offering. They are as follows.
- Check whether your favorite project is bearing IEO or not. Many projects do both IEO and ICO, and as a contributor, participating through IEOs is always a safe bet.
- Learn what IEO’s exchange is about to happen. Also, make sure that you understand the KYC requirements of the exchange that you are going to use to participate in the IEO.
- Before starting IEO, properly set up your exchange account and complete the KYC process.
- Know which cryptocurrency or Fiat is accepted to invest in IEO. For example, any project using Ethereum blockchain will accept only ether as payment currency.
- Always be active and be ready with all the necessary tools, funds or information to successfully participate in the initial exchange offering.
At the end, the Main point:-
Change is a better market path. This is for the cryptocurrency market where the IEO is on the path to change ICO. It is good to ignore the benefits of IEO, and with both exchanges and developers interested in the IEO idea, we are going to see more initial exchange offering in the future. So, what do you think about the initial exchange offering and their impact on the market? Comment below and let us know. we are listening.