What is IEO in Crypto? How Does an IEO Work?

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Before we look at how IEOs was created and where to find the latest IEOs in the not too distant past, we have to look quickly. These were the days of the nascent crypto market, which was still very early.

Recall when all the excitement was in the ICOs? It only happened a day when news of a blockchain project that launched its own ICO or Initial Coin Offering did not pass. Sure, some of these were quite successful and profitable. But some people came to spoil the fun, as with all the good things.

Seeing the chance to make a bank, several companies have created ICOs for what they said was the next big thing. For many, that seemed to be all they needed to hear before investing their hard-earned money. The team behind the ICO project had already run away in what is known as the exit scam before they knew it. It happened enough often to make people suspicious of every ICO.

What Is An IEO?

Now that the scene has been set, we can now see how the IEO happened. An IEO or Initial Exchange Offering introduces the idea of an ICO. An offer is made through a cryptocurrency exchange, rather than by a random crypto/blockchain team, as the name implies.

Why would anyone have faith in an IEO after the ICO failure? Because an IEO leverages the exchange’s prestige. Neither exchange would like to tarnish their credibility for keeping an IEO on scam ventures, because it is not an easy task to create and run a half-decent exchange. As such, people usually feel safer to engage in an IEO.

Don’t believe the exchanges do it out of their good, you know. I should imagine that there would be some kind of deal that has any money changing hands. You will also receive a new listing of a new token not otherwise available.

Which Exchanges Offer IEOs?

Let’s move on to this article’s main topic: where is the IEO? The answer is, of course, on cryptocurrency exchanges. All exchanges, however, do not have the resources or reputation to hold an IEO. Here are a few prominent examples of some IEOs on their platform.

Binance

https://i.imgur.com/QX5gIa9.png

By considering the biggest and most popular exchange, I can’t talk about IEOs. Binance was one of the first to have a good IEO at the beginning of 2019. This observed the great success of BitTorrent and Fetch. AI. Many of these early projects have indeed been successfully launched and earned huge ROI from those involved.

But now many people want to invest in this and make a share of the profits. However, Binance is one of the biggest names in the game and you have an IEO strategy that sells out in seconds. Great for the exchange and project, but not for those who want to participate. Otherwise, you can participate with the confidence of success in Binance Launchpad.

KuCoin

https://i.imgur.com/iXNt8s7.png

KuCoin is no stranger to the IEO game that launched its KuCoin Spotlight platform. They had some interesting projects to achieve great results. Just about 5 projects have been carried out through KuCoin Spotlight and the last IEO has been a couple of months.

As another major player on the market, tokens are also sold out in a matter of seconds. I suppose this is predicted and is evidence of the involvement of the IEOs. With a wealth of cryptography from KuCoin, including altcoins, these new tokens should feel right at home among others. KuCoin is another highly rated alternative and a great choice for anyone who wants to engage.

NEXT

https://i.imgur.com/wjsEqYh.png

It’s an interesting one now. NEXT.exchange is a relatively new competitor on the cryptocurrency market, with the distinction of being a centered/decentralized hybrid exchange. As I spoke earlier when I looked at this kind of exchange, decentralization is the name of the game in the blockchain world, so I was fascinated if I heard from their own IEO launchpad named NEXT.genesis.

They have only one IEO under their belt so far. In reality, it is still ongoing. Another interesting point is that the IEO has been established to sell its NEXT token. Next, they work together with P2PB2B exchange for the IEO, where users can buy the tokens from either site.

If you want to see it for yourself, see their IEO information page. This is one to watch.

OKEx

https://i.imgur.com/FRXE9ZB.png

Now, let’s look at the IEO platform of OKEx. So far, OKEx Jumpstart has provided IEOs for approximately nine programs. Naturally, these have proved popular. One thing of which OKEx appears especially cautious is the fair and open method. To this end, it made some significant changes to the rules of engagement and took part in one of the most active forums.

One of OKEx’s new and most important updates to its Jumpstart program has seen a shift in who is allowed to participate. The exchange will now reserve the allotment of tokens for sale to’ OKBelivers,’ essentially a subscription service, requiring users to trad some native tokens.

There is also the OKTraders Privilege Allotment, which can also be sold. I assume those who are actively involved in OKEx deserve some kind of compensation for their contribution. Remember this if you are involved in any IEO that begins with OKEx Jumpstart.

Is it safe to take part in IEO?

The initial offer of exchange could sound a little more stable because it addresses one key problem that troubled many of an ICO; the prospect of selling the tokens at a later time.

Coins were often sold via an ICO and only planned to be available on exchanges later on. In some cases, ICO tokens were never included in exchanges.

When you buy tokens via an IEO, you know that the exchange has carried out due diligence and released a coin you think has a future. After all, it is in the best interest of an exchange not to ruin its client base with dodgy tokens.

That said, you should always be vigilant about the exchange from which you purchase, and the possible justification for listing the IEO. Especially because in the past some exchanges were accused of accepting money to list those tokens.

Moreover, you will probably be subject to know-how (KYC) and anti-money-laundering (AML) checks, depending on the exchange you subscribe to. Which should provide additional investor protection if properly implemented and make it harder for illegal investors to participate.

Should you be interested in an IEO?

This is also far from an exhaustive list, but I believe it includes the main players on the market. A significant part of the IEO market is taken up between Binance, KuCoin, and OKEx. I have applied to the fascinating NEXT.exchange scenario, which I think gives a new insight into the future.

If you are interested in participating in an IEO at any point, just ensure that you do your research and think carefully before you get involved. You don’t have too much chance with the pace at which some of these sell out.

Dustin

Since 2011, Dustin has been an active member of the community of cryptocurrencies. Dustin is a Washington-based financial-tech reporter. He's passionate about bitcoin, open source code, and decentralized apps. Dustin wrote thousands of articles about the innovative protocols.

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