What is more Secure Offering, ICO or IEO?

In this article, we will discuss which is more secure offering either ICO or IEO?

I will simply give an explanation for both and examine them. I would advise you to read about them elaborately and figure out for yourself.

What is more secure offering, ICO or IEO?
What is a more secure offering, ICO or IEO?

Let's start:

Initial Exchange Offering (IEO)

IEOs are very similar in nature to ICOs, in the experience that they nonetheless offer their investors cryptographic tokens in return for their help and the technique of fundraising is founded around crowdfunding.

The key difference is the reality that alternatively than the blockchain challenge setting up the sale and appealing to plausible investors without delay during the sale, the IEO will have a middleman (generally a crypto exchange) who will assist to behavior the sale.



The expand in the wide variety of initiatives that are launching thru IEOs has led to many exchanges creating “launchpads” on which to catapult blockchain tasks to better success.

This has allowed a variety of crypto tokens to be presented to customers in a more uniform and trendy manner.

Because of the way the procedure is carried out, IEOs are a form of settlement between the alternate itself and the cryptocurrency project. This increased degree of accountability that stems from a trade now not wanting to be related to scam projects helps to increase the reliability of IEOs.

Exchanges will also audit IEOs before officially permitting them to launch. This will involve analysis of the platform’s technology and reports based totally on the attainable of the project, they will additionally completely manipulate the sale on the exchange.

An instance of a scam ICO can be found in the case of Modern Technology, a Vietnamese startup that raised over $660 Million from over 32,000 men and women at some stage in their ICO.

Shortly after receiving this stage of funding, they fled the united states of America and their offices, leaving a number of unhappy, out of pocket buyers in their wake.

The exchanges primarily advantage from these preparations thru the deriding of record charges and the IEOs of popular tasks can drive a massive amount of visitors to the internet site of the exchange, leading to more universal use.

Furthermore, they can also be in a position to generate long-term custom via humans who are supportive of IEOs or had been in reality impressed by way of the massive range of offerings the change is providing.

There are additional advantages for the traders and the blockchain projects themselves. Firstly, the tasks themselves can feel impervious in the expertise that they are less likely to be seen as a rip-off operation, due to the reality that they are being backed via an exchange who will have introduced their due diligence on the listing.

The tasks also benefit, because some exchanges have a very high quantity of users who will view their IEO, leaving a large achievable market to appeal to. This makes steeply-priced advertising campaigns nearly redundant.

The investors themselves reap the rewards of this manner through having multiple strategies for payment during the IEO on the platform, such as fiat currencies, Bitcoin and Altcoins, as properly as having instantaneous liquidity with their investment.

IEO Conclusion

Despite the increased stage of have confidence surrounding projects that are provided thru IEOs, investors still cannot be definitely certain of the legitimacy of a undertaking being marketed on an exchange and are counseled to proceed with caution, to avoid issues such as the issue with Quadriga CX where they have currently been the concern of legal proceedings touching on to the loss of $140 Million worth of cryptocurrency. It used to be additionally stated that the agency used pretend bank accounts in an effort to run an “insider trading operation”.

Additionally, when the Securities and Exchange Commission in the United States currently launched their hints for cryptocurrency projects, any hopes for clarity on some of the key questions pertaining to IEOs have been missed, such as how startups running backyard of the USA are being affected. If you would like to view the recommendations in-depth, the full record can be accessed in this article.

Now, What is ICO?

Basically, In ICO’s you make investments in a project and buy his coins.

Mostly with the belief, this sure mission has the doable to be triumphant in the future and as a result, your coin will make bigger value.

This way an individual can invest in a creating mission and an agency can elevate funds besides any loans or aid from a 0.33 celebration such as banks.

The principal hassle is that there is no legislation or any enforcement on this field which causes pretty a lot of scams and frauds Bitconnect is a very suitable example.

ICO Conclusion

This is way blockchain and ICO go together, normally blockchain assignments use ICO or any different strategies such as STO, IPO, However, it becomes very obsolete and because of the many scams and the bad reputation, ICO has received it almost disappear entirely.

I will add this chart that absolutely it very good.

9 Comments

  1. What a helpful article on ICO and IEO, thanks for the educational lesson! :)

    Have a nice Weekend!
    Lisa - sustainable solo travel blog

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  2. Very informative! I knew nothing about ICO or IEO before reading this post..
    -Monica

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  3. This really is an article I should read again and again, I really need to learn some from you...

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  4. All new to me. There are so many option to learn about.

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  5. I had no idea what these were. The post was insightful. Thanks for sharing!

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  6. Why did I get into crypto in late 2017? lol I shed a tear every time I open my blockfolio. Of course I haven't really lost anything, until I sell. But definitely got in at the wrong time. I have definitely heard of ICOs. I haven't heard much about IEOs.

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  7. I didn't know about these topics. It enlightened me. Thanks for sharing the info, I'll read more about it.

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  8. Learning new lingo today. This isn’t really my world but sounds truly informative:,

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  9. I have never heard of either of these terms. Obviously I know nothing about cryptocurrency. The whole concept makes me a little nervous. But maybe someday I will try my hand at it.

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