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Do you remember the first days of cryptography? It was like Wild West, especially when the new projects tried to raise money. This was the time of the ICO, or the initial offer of coins, where anyone could launch a project, and it was difficult to distinguish the good of the bad.
Outside this chaos, a newer and more safe way to launch a cryptographic project was born. It is called an IEO. This guide will give a clear and simple answer to the big question: “What is an IEO (initial exchange offer)?”. We will see how it works, its benefits and how you can join one.
What exactly is an IEO?
So what is an IEO? Think about it as a cryptographic fund collector who has an referee. An IEO is a sale of tokens administered and housed by an exchange of cryptocurrencies.
The most important thing to know is that the exchange is deeply involved. Not only do they provide a place for sale; They act as an intermediary. The exchange verifies the quality of the project, manages the technical side of the sale and ensures that investors obtain their tokens. This adds a large layer of trust and security.
How does an IEO work? A step by step process
The IEO process is quite simple. Usually, follow four simple steps, from the first verification to the final token list. We are going to break it down.
1. The due diligence of the exchange
Before listening to an IEO, the exchange does many tasks. The project team has to apply for exchange, and the exchange takes them through a difficult review process.
They look at everything: the project plan (called technical document), if the product really works, the team experience and if the project follows legal rules. Only projects that pass this test have an IEO.
2. The announcement and participation rules
Once a project is approved, the exchange announces the IEO on its website, usually on a special page called “Launchpad”. This announcement includes all important details.
It will also list the rules on how it can join. Often, you must prove your identity (a process called KYC) and maintain some of the native exchange currencies, such as Binance’s BNB. Sometimes, there are so many interested people that the exchange uses a lottery system to give everyone a fair opportunity.
3. Tokens sales event
This is the exciting part! During a specific time window, users who met the rules can buy the tokens of the new project. You can do this well on the exchange platform.
Usually, use other popular cryptocurrencies such as USDT, BTC or ETH to make the purchase. The process is designed to be simple and safe, as well as to trade any other currency in the exchange.
4. Tokens distribution and immediate list
After the sale period ends, the event is over. The new tokens are sent directly to the wallets of all the investors who participated.
And here there are one of the best parts: almost immediately after sale, the exchange lists the new token for trade. This means that you can start buying or selling the Token immediately, which gives it instant value and liquidity.
IEO vs. ICO vs. Gone
The world of Crypto’s fundraising has some different terms that may sound confused. IEO, ICO and IDO are the three main ones. Let’s make it super simple see how they are different.
IEO (initial exchange offer)
An IEO is housed in a great exchange of centralized cryptography. The project is carefully verified by the exchange, which makes it safer. In general, you must provide your identification to participate, and the Token appears on the list to operate just after sale.
ICO (Initial Coins Offer)
An ICO is led by the project team on its own website. This means that there is no great exchange verifying his work, which makes it more risky for investors. Despite the risk, many excellent projects began with Initial Early Coins Offers (ICO)since this was Crowdfund’s original form.
Gone (initial offer of Dex)
A gone is similar to an IEO, but it happens in a Decentralized exchange (DEX). This means that there is not a single company in charge. Like an IEO, Token can be negotiated immediately, but trust comes more from the community and automated rules than by the review of a company.
The pros and cons of an IEO
Like anything in investment, IEOs have bad sides and sides. It is important to understand both before deciding to participate.
Advantages for investors
For investors, the benefits are clear. First, there is much more confidence and security because an exchange of good reputation has already verified the project. Second, it is very easy to participate, since everything happens on a family platform. Finally, you get a guaranteed liquidity, which means that you will not get stuck with a file that you cannot sell.
Advantages for projects
The projects also love the IEO. Being accepted by an important exchange gives them instant credibility and seems like an approval seal. They also obtain mass marketing and exposure to the millions of users of the exchange. In addition, the exchange manages the difficult technical parts of the sale, so that the project team can focus on construction.
Potential risks and disadvantages
However, IEOs are not a guaranteed path to wealth. Even with exchange checks, a project can still fail. The cryptographic market is very volatile, and the price of Token could fall after IEO. In addition, because they are very popular, it can be very difficult to get a place, since thousands of people compete for a limited number of tokens. Understanding these risks is a key part of the answer “What is an IEO (initial exchange offer)?” For any serious investor.
How to find and participate in the best IEO
So, you are interested in ieos and want to know where to find them. This is how you can start and prepare for success.
Directly monitoring the launch exchange
The most direct way is to monitor the official “launchpad” sections of the main exchanges. Places such as Binance Launchpad, Kucoin Spotlight and Bybit Launchpad are where these events are announced and organized. Visit them regularly so that an ad is lost.
Use a dedicated presale listing platform
Verifying each exchange one can be a lot of work. A much easier and more efficient way is to use Dedicated presale listing platforms. These websites gather all the next IEO and other cryptographic pressures of the entire market and place them in a convenient place for you to discover and investigate.
Prepare your exchange account
Once you find an IEO you want, you must be ready. Make sure your exchange account is fully configured by completing the Kyc identity verification (your client) in advance. If IEO requires that you keep the exchange token, buy it in advance. To make the smartest decisions, always verify the Latest cryptography prices of the market before investing.
Conclusion: Is the appropriate investment for you?
To conclude everything, IEOs are a great step ahead of the risky days of the ICO. They offer more security, easier access and better experience for investors. By having an important exchange involved, both the project and the investor obtain a much safer environment.
However, always remember to do your own research (Dyor). Do not trust the exchange. A deep and clear understanding of “What is an IEO (initial exchange offer)?” It is the first step.
This knowledge helps him move through the exciting world of cryptographic funds with more confidence and security. If you ever have specific questions about a project that you see on the list, it is always a good idea communicate with more information of platforms that specialize in this field.
