If there is a distrust
in a particular product or process, the succeeding legitimate advancements will
face hindrances. This is the case of IEO!
IEO has gained
popularity over the years. But, still, many crypto investors have chaos on
whether to invest in IEO fundraising projects due to the
fraudulent activities that happened with ICO campaigners. The crypto investors'
opinion on IEO must be revamped with a clear vision, to make them beneficiary
for the digital space.
In this blog post,
let's have a quick overview of what is all about IEO, how it differs from ICO,
its advantages, and limitations!
What is IEO(Initial Exchange Offering)?
Initial Exchange
Offering(IEO) is the fundraising technique that is hosted by renowned exchange
platforms. Crypto investors can invest in IEO tokens only through the exchange
channels, and they are restricted from being sold directly from token
issuers.
Both the token issuers
and investors have a bunch of benefits by picking the IEO crowdfunding
technique. The token issuer must submit their KYC/ AML and other project
details to the exchange platforms. The exchanges possess a set of regulatory
norms that needs to be followed on the IEO development process. If the token
issuer and their IEO project deviate from the terms of exchange, they are
liable to be unlisted.
Here we go with the
advantages of the IEO fundraising technique!
What are the advantages of IEO crowdfunding?
The successful IEO
project is a profitable deal for the entire wheel of community peers involved.
Fundraiser saves a lot of expenses that are spent on marketing the IEO
crowdfunding campaign by listing them in exchanges. However, exchanges charge
some fee to register the IEO tokens, but it is entirely beneficial to the
fundraisers as they can acquire a broad investor base right from the start.
From the investor's
end, IEO is the only fundraising technique that can be trusted with assurance.
Many exchanges have invaded the IEO listing in recent times, which broadens the
options for investors and fundraisers. Countries that have banned ICO and other
crypto projects have encouraged IEO listing on exchanges with regulatory norms,
which makes it more trusted.
What are the limitations of IEO?
The big bang that is
faced by IEO is that it is compared and misled with ICO token sale. Many
investors and countries are stuck with the spamming of ICO's. South Korea,
Japan, and America encourage IEO token sale with some licensing
agreements.
IEO token sale has
some limitations for public and private sale that is framed by exchanges. So,
developing an IEO without abiding the norms of exchange and underlying
federation would be a waste of effort and time. Consult a professional IEO development company to have a clear vision of the regulations
framed!
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