In-order to understand the Trading System IEO, let us roll back by a few months when ICO was in much rage. Initial Coin Offering was a system of funding for startups using cryptocurrencies. Some cryptocurrency used to be sold to an investor directly, in the form of coins or tokens and a legal tender or some other cryptocurrency was traded back. ICO is now mostly replaced with trading system IEO, due to its safety and security features. IEO, initial exchange offering, is kind of a new approach to cryptobanking and is soon taking over ICO and traders across the globe. It started with Binance launching the IEO platform, Binance Launchpad. You can think of an initial exchange offering as an extension to ICO, which happens on some cryptocurrency exchange which offers the IEO platform.
Recently with BitTorrent raising $7.2 million in just about 15 minutes followed by AI raising $6 million in 22 seconds on Binance’s Initial exchange offering platform, Launchpad, this has been pivotal in avalanching the popularity of IEOs manifold and also highlighting this new practice much in media.
Why is Initial Exchange Offering (IEO) Fast Replacing ICO
Initial exchange offering is quickly replacing the traditional ICOs due to a number of reasons. These are:
Safety & Trust: In case of an IEO, the exchange shoulders the responsibility of getting the funds from the investor against the sold tokens from the startup. Of course, exchanges like Binance etc. have become a seal of trust for startups, and they also carry out their own background checks and all to maintain their own reputation, before they offer some IEO to some investor. So it becomes safe and trustworthy for both the parties involved.
Easy & Assisting: It is far more easier and convenient to use an IEO, you just need to sign up on some platform that offers the IEO facility, rather than hosting this own your own startup website, which itself is in infant stage and requires much marketing. Also, you get access to the customer base of the exchange you use, which is an added advantage.
Transparent & Evolving: An Initial Exchange Offering is much more transparent and reduces the possibility of one-sided trade. This was many a times the case with ICOs which had led to much dissatisfaction with them. However, with an initial exchange offering, you do not need much expertise or technical know-how. The IEO process is in the evolving stage, so exchanges are trying to add more features to make it more transparent for both the involved parties.
With all that said, it is great to replace your ICO with and IEO, you would not have to go for separate KYCs on the same exchange, but still as the process is evolving, and more exchanges starting to offer the IEO platform, it is better to use the services of some online platform, like executium.com, that can assist you setting up your IEO, guiding you through the process seamlessly. Also they can guide you regarding minimizing the various costs involved while floating some tokens as an initial exchange offering.