What is Initial Exchange Offering (IEO)?
The initial exchange offer is a token sale that is held at the exchange.
The key difference between IEO and traditional ICO is the emergence of the exchange as an intermediary of the process. The exchange team conducts a due diligence and technical verification of the project and tokens, assesses the investment attractiveness and potential of the project, and then announces the start of the token sale on the exchange. Those who want to purchase tokens do not need to send funds to a smart contract (as it was in ICO), but register on the exchange and buy coins immediately from their personal account.
Why projects are interested?
The main advantage of this tool for projects is a large number of existing customers of the exchange, who automatically become potential investors.
What are advantages for investors?
A key advantage for investors (in addition to have an exchange as a safe intermediary), is simultaneous listing on the exchange, as the exchange is a key partner in organizing the sale of tokens.
How is the distribution of coins?
Coin distribution follows the same principles as in ICO. Depending on the project, conditions may be adjusted. For example, developers may require a fixed price to sell tokens during the entire IEO process or set limits on the amount of tokens for each investor.
How to participate in IEO?
on EXMO, go through the verification procedure
, find out in which currency the funds will be received, exchange them on the exchange or immediately deposit the necessary currency on your account and wait for the start of the tokensale.
How are projects being picked?
When choosing the project, EXMO takes into account 4 main criteria:
1. Evaluation of the project in terms of the work done - (how interesting and promising the idea is).
2. Evaluation of the project from the point of view of the community: what is the general information field around the project, how are branches held in specialized forums.
3. Evaluation of the team: who drives the project, the amount of successful projects in the professional history of the team.
4. Evaluation of the project in terms of market value - whether a business is really necessary and valuable for the market.
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You can find useful information about cryptocurrencies and exchange trading on EXMO’s YouTube
channel and in EXMO Blog.
Thank you for staying with us!
Best regards, EXMO team