Initial exchange offering (IEO)
Initial Exchange Offering (IEO) is a fundraising model in which a cryptocurrency exchange platform acts as the intermediary between investors and a new blockchain project. The IEO involves the exchange vetting and selecting a project to be launched through its platform, conducting due diligence, marketing the project to potential investors, and facilitating the sale of tokens.
IEO ensures that the tokens being sold by the project are listed on the exchange, providing liquidity to investors. It also helps to mitigate risks associated with scams and ensures transparency and authenticity of a project.
IEOs have gained popularity as a new method of fundraising for crypto projects, as it simplifies the overall process of buying tokens. Investors can participate in an IEO using the funds they already have on the exchange.
Overall, IEOs streamline the fundraising process for blockchain projects, provide investors with greater protection and access to liquidity, and benefit exchanges by attracting new users to their platform.