What is an IEO? Initial Exchange Offering Explained.
So far, 2019 hasn’t provided a second wind for the ICO model, which was already losing steam throughout 2018. While "traditional" ICOs are struggling to get backers, new approaches to token sales are starting to gain popularity. One such model is the security token offering (STO), in which token issuers are focusing on regulatory compliance and granting certain rights and protections to participants in token sales.
Initial exchange offering (IEO)
Another is the initial exchange offering (IEO), which is seeing support from some of the biggest names in the cryptocurrency space, such as binance cryptocurrency exchange
and Bittrex. IEOs are token sales that are backed by a cryptocurrency exchange, and are only available to the exchange’s registered users. In many ways, IEOs function just like ICOs – a set amount of tokens is available for sale at a fixed price, কেন বাইনান্স নিচে আছে
and there are usually minimum and binance cryptocurrency exchange
kev kawm soj ntsuam maximum contribution limits set in place per user.
Benefits of IEOs.
In some ways, exchanges are putting their reputation at stake by deciding to host a token sale for a project – if the project turns out to be dishonest or unable to deliver on its promises, the reputation of the exchange could take a substantial hit.
Because of this, exchanges are incentivized to do their due diligence on the projects they are hosting, although it must be stressed that this isn’t a guarantee that tokens sold through IEOs are always necessarily issued by legitimate projects. As always, you should do your own research before deciding to purchase any tokens.
For token issuers, there are multiple benefits of the IEO model. First, they get access to an exchange’s existing userbase and binance account review notice reddit marketing capabilities. Secondly, the exchange handles the necessary KYC/AML processes. This is also beneficial for the users, as they don’t have to pass additional KYC/AML checks if they are already a verified user on the exchange.
Last but not least, a token that has been sold through an IEO is usually listed on the exchange shortly after the conclusion of the token sale, providing liquidity and easy access.
The IEO space is getting crowded.
Currently, Binance is spearheading the IEO space with their binance cryptocurrency exchange
Launchpad platform. It already hosted the token sales for and , binance u.s. lesitalaina and both were met with considerable demand.
OKEx is also getting into the game, recently announcing their OK Jumpstart IEO platform.