IEO
IEO is a fundraising model of digital assets to raise capital on a CEX. Thanks to the exchange's authority, the user is more protected against scams and fraud in comparison with an ICO.
IEO (Initial Exchange Offering) is considered by most the new frontier of ICO.
The main difference with ICOs is that IEO is launched on a centralized exchange (CEX).
The centralized exchange acts as an intermediary; it lists the token on its platform and invites its users to invest in it, managing its sale. The companies or startups, in return, have to pay listing fees to that exchange.
Thanks to the authority and security of the CEX, an investor can be much more confident about the project and the token. The centralized exchange is a guarantor for the analysis and reliability of the token launch that will be carried out on its platform.
The centralized exchange is responsible for conducting a thorough vetting process.
This minimizes the risk of scams before publishing the token and launching the sale.
Several platforms offer IEOs to the crypto market, including the Binance Launchpad. It is the most popular platform, which has helped more than a dozen blockchain projects raise capital, such as BitTorrent (BTT) and Axie Infinity (AXS).
