If there is anything which has generated attention and rage other than Bitcoin, then it is Initial Exchange Offering, better known as IEO. During past years, ICO or Initial Coin Offerings were the chosen funding method; ICOs being few these days, IEO emerged to be trending a lot in the cryptocurrency world. Now it definitely must have generated a curiosity to know about IEO and what makes it common so much. So let us end this curiosity by telling you all about IEO and know its importance in trading.
All About IEO
IEO or Initial Exchange offering is all about raising funds for the cryptocurrency projects. To have a much better understanding of it, let us briefly tell you about ICO in which investors give money to the project team in exchange for certain crypto coins on a blockchain. But it didn’t show good results and became much problematic due to constant failed projects and scams too. But in comparison to it, IEO works differently. As the name implies, it includes crypto exchange platform representing as the middleman. Here, you don’t need to give money to developers, rather to the crypto exchange connected to them. So in exchange, you won’t be awarded tokens directly by the project team; instead, you get it from a crypto exchange platform.
While knowing all about IEO, you need to know its advantages, which brings many benefits to investors. One of the reasons is that when the crypto exchange site is combined with the crypto project, the reputation of the exchange is vulnerable to adverse results. It is possible to happen when the developers fail to achieve the stated goals which result in fall down of the project; then it is the exchange which faces the blow mostly. So crypto exchange sites take much care before accepting the projects into its EIO offering. It involves thorough checking of white paper and the members and ensuring about the targeted goals.
It is possible to expect exchange sites to turn back from IEO whenever it seems something shady or doubtful. It has happened earlier and is likely to occur in future too, mainly with reputed exchanges. So in comparison to ICO, investors can experience a big reduction in risks to be taken. Sometimes, there is no involvement of human error, as some unforeseen circumstances like market shifts and unpredictable overheads can also be the reason behind the project failure.
If you have been keeping abreast of the upcoming initial exchange offering listing, then you will know about the latest upcoming IEOs which include Brikcoin, GLB coin, Next.exchange, Vcoin and Kauri to name a few.
Why Prefer IEO Over ICO?
After knowing much concise information about IEO, now you need to understand why you must prefer IEO over ICO. Here are some valid reasons to know about: Technology inovation
Are you irritated by the multiple KYC processes of ICO project? Then here’s the solution. If you have a KYC profile on Tokenize Xchange, then you don’t have to face problems like ICO with multiple KYC processes in comparison to each IEO is launched by Tokenize Xchange.
IEO Is Accessible
One of the major problems with ICO is it’s closing down, which is not the case with IEO because you will have your invested tokens in your exchange wallet.
So this was all about IEO or what you say Initial Exchange Offerings. It is a must to know about IEO as it comes as a better alternative to the ICO. It was all because due to some drawbacks of ICO, IEO managed to supersede it, and became much preferable to the former. There are many reasons which state the IEO advantages over ICO; one such example is that it is simple enough and doesn’t involve multiple KYC processes like it is expected in ICO. Another valid reason is its accessibility which makes the users have their invested coin in their exchange wallets.