What is IEO(initial exchange offering) and how its different from ICO(Initial Coin Offering)

IEO-

IEO (Initial Exchange Offering) is a process in which a coin/token is for sale which is administered/Sold by a digital currency exchange on behalf of developers. IEO is just another way of crowd fundraising and launching cryptocurrency. IEO is essentially based on the same concept of ICO, but there are few differences in the way which increase the credibility of the offering. IEO is done by Cryptocurrency Exchange, one or more. These digital currency exchanges helps startups in raising funds, promoting, advertising, marketing and handling such processes for startups, helping them to totally focus on the project than these complex fields they have no experience of, which is professionally handled by crypto exchanges. These cryptocurrency exchanges have reputation and skills which brings stability and a little regulation in the business. The coin offering becomes more credible and reliable.

A user can easily participate in an IEO by opening an account on the exchange, and after funding they can participate in IEO through Exchange platform.

How IEO (Initial Exchange Offering) and ICO (Initial Currency Offering)differs

IEO and ICO are built on the same concept, but there are many differences in their basic structure and functions. These differences are given below:

• IEO are handled by cryptocurrency exchanges, on the other hand handler of ICO are the developer of the coin. Cryptocurrency exchanges have good name and reputation, which makes the coin offering more accountable, credible and reliable. It is believed that the coin offering and the work is being processed in a professional way.

• The launch process relied upon the developers in ICO offerings, whereas in IEO launch processes depend upon the exchanges. Exchanges are quite professional, which is why professionalism, proficiency, excellence and efficiency is brought into the coin offering.

• Prior to starting of any IEO, developers and cryptocurrency exchanges decide upon the price of the coins – this can be either fixed or variable. After reaching an agreement upon the pricing of the coins, developers and digital currency exchanges conduct research in which feasibility report of the project is prepared and put for consideration. This feasibility report decides whether the project should proceed or not. None of this is done in the ICO.

• Any person can participate in the ICO. However, in IEO, only members of an exchange can participate. This increases confidence and reputation.

• There have been numerous cases in which fraudery and criminal deception has been committed. So, ICOs booming trend had been disadvantageous for many in the business. This worsened the situation in many countries, and countries, like China and South Korea, banned ICO right away to rescue their people from fraud and deception. But IEO is safer and conducted by cryptocurrency exchanges. So project teams do not conduct fundraising, instead fundraising is conducted on the reputable and credible exchange platform. This saves from fraudery and trickery to some extent.

Finally

IEO and ICO are essentially same. Only difference, as it is evident from their name is that in IEO coins/Tokens are offered through a partnering exchange while in ICO coins/Tokens are offered by ICO website. IEO is a better option because it provides better benefits.