Initial Coin Offering

ICO’s and IEO’s

After going through all of that, this is what we can summarize. The key benefits of IEO’s is within the fact that they are carried out through the help of a third party, in this case, that the third party is a crypto exchange platform.

This in turn allows the platform to screen every project that seeks to launch an IEO on its site, and exchanges that want to maintain a reputation among the community have to choose them carefully. This is how you can eliminate scams or scammers from getting access to any of the funds if the exchange does its due diligence.

This leads us to the conclusion that IEO’s are secure and easy to use. This is due to the fact that a startup that is looking to issue tokens has the ability to take advantage of the processes exchange platforms have for launching any IEO’s. This makes the entire offering a lot more straightforward than doing an ICO on its own.

The downside here, they have to pay fees for listing, and a percentage for the tokens. This in turn makes it expensive, and the exchanges themselves tend to be strict.

Now, the key benefits of ICOs are extensive. This is due to the fact that anyone can buy tokens, the tokens can be sold globally, and they have impressive decentralization, with instant buy-ins and without the need for any middleman.

This leads us to the conclusion that IEO’s are far less likely to fail than ICOs, but do not let this fool you, as even though they are safer, they could still be at risk. Make sure to always take careful consideration when investing in an IEO.

This is due to the fact that, even if you take into consideration the fact that it has been backed by an exchange platform, vetted, and hosted, nothing is ever 100% bulletproof. Always ensure that you research the project, check the team carefully, and look into the track record to figure out if there is a place in the market for the project. Most of all, ensure that it has realistic use cases.

To summarize all of this up, initial exchange offerings are typically a lot similar to the initial coin offerings, however, the coins and the tokens themselves are offered through an exchange rather than directly to investors, and this is what makes them unique.

Exchanges need to do research and partner up with the team before listing the tokens, and this, in turn, makes it a lot less risky to invest in them, and the convenience of the exchange makes the barrier of entry almost non-existent.

The tokens and coins need to be immediately tradable on the exchange after the IEO, and this is something you always need to look for. No matter how you choose to invest, always do your background checks, review the team in question, the white paper, the use case, the goals, and roadmap, and assess its use on the market.