IEO are becoming a hot fever now-a-days among new startups, and this seems to be the next big thing after the ICO craze. Before we go into what does an IEO do, let us try and understand what exactly an IEO is. Initial exchange offering, or IEO, is a kind of practice used by new companies and startups to raise funds over a cryptocurrency exchange, the main idea being exploiting the current customer base of that exchange where the IEO is floated. The company that floats the IEO pays a negligible listing fee, and some commission dependent upon the sale proceeds during the IEO preview, and in turn the exchange markets and sells the tokens of the startup. The biggest note here is that when an IEO is floated, it is not listed on that exchange, but this listing is usually done after the sale preview.

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What Does an IEO Do
An IEO provides a startup with the following things:

1. It lets the startup use the platform of the exchange, rather than the startup doing all its marketing by itself or rather than using its own website.

2. The fundraising is also conducted at the exchange’s platform when an IEO is floated around.

3. The smart contracts in question are also managed by the cryptocurrency exchange, and as such, the entire burden falls on the exchange rather than the investor.

4. KYCs are not needed for each separate token or project, and the exchange conducts the required one on its users.

5. IEO makes it possible for the startup to save on public relations and promotional activities too, as that also lies on the shoulders of the exchange.

6. Once the crowdsale is made, the IEO let’s for automatic listing of that particular token on that particular exchange.

7. An IEO provides for trust and security from the buyer’s point of view, as the exchanges already do a lot to maintain their reputation, and when they allow for some IEO on their platform, it implies that they have done the due diligence already.

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How to Do an IEO
Anyone can use an IEO so as to list some token on an exchange, the only criterion in that regard is that the startup will need to pass the evaluation and verification process that is conducted by the exchange. 2017 and 2018 saw that ICO’s created a huge fundraising boom, now seems to be the time of IEOs. It is being understood that an IEO is a more like of an advanced version of an ICO, and it improves the efficacy of a crowdsale to quite an extent. This is bringing it more into the attention of new companies, and so the competition among IEOs has also started to increase. The best way to do it now is through some online consultancy like executium.com. Such companies not only help an investor plan and execute an IEO, but they also help their IEO pass the screening process easily. Remember that what everybody is allowed to do does not imply what everybody must do. It is better to hire experts and go the professional way.