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Demystifying IEO (Initial Exchange Offering): What You Need to Know
Your Ultimate Guide to IEO (Initial Exchange Offering)
What is IEO (Initial Exchange Offering)
A IEO (Initial Exchange Offering) is a kind of crowdfunding campaign carried out by cryptocurrency exchanges to collect capital for cryptocurrency projects. In contrast to an ICO, in which the companies sell the tokens directly to investors, the tokens are sold from the crypto tour to investors.
The difference between an IEO (Initial Exchange Offering) and an ICO (initial coin offering) is who sells the tokens to investors. At the ICO, companies sell the tokens directly to investors, while at an IEO the tokens are sold from the stock exchange to investors.
The stock exchange takes on the role of an extended arm of the company and ensures that the tokens are output to the investors if the campaign is successful. In this way, companies that participate in an IEO can benefit from the existing user base and the call of the stock exchange.
