Initial Exchange Offering (IEO)

What Is An IEO?

In order to acquire money for a new business, an Initial Exchange Offering (IEO) makes use of a cryptocurrency exchange. These platforms are commonly used to exchange assets, but typically only after creators have gathered funds to get their initiatives off the ground.

An IEO allows investors to acquire these assets before they are made available to the general public. Registered individuals who gave their KYC information to the exchange handling the token sale will be able to purchase tokens before they go on open market trading.

Due to the fact that IEOs are organized by an exchange, the startups who choose this route must have an established strategy. The participating exchange typically conducts a thorough evaluation of the IEO proposal. To some extent, any IEO that the exchanges choose to offer puts their reputation on the line.