If you’re curious about what IEOs is, here’s a short and in-depth guide to help clue you in.
What is an IEO?
An IEO is an Initial Exchange Offering and can be considered the next step up from an ICO (Initial Coin Offering). An IEO refers to a token sale that is overseen by crypto exchange and is a way around being scammed by an ICO that turns out to be something it’s not.
An IEO is available to anyone who uses an exchange, and is used to allow an investor to collect tokens while funding a new cryptocurrency of their own.
The Benefits of an IEO
An IEO allows for a better sense of confidence in the investor’s part. They permit a deal to be made with the exchange itself, rather than with the person offering an IEO, ensuring its legitimacy.
There’s also the benefit of removing the scam portion entirely. IEO teams will never be anonymous sources, and will not be able to remove themselves from an exchange after accepting investment.
The Drawbacks of an IEO
IEOs are still fairly unregulated, and the core purpose of an IEO and an ICO is the same. As some countries in the world have placed an outright ban on ICOs, there’s a good chance this reflection will be put onto IEOs in the future.
There’s also the idea that many IEOs are filled with bots, who are programmed to take up spaces for human investment in the market.
Want to take advantage of your IEO? Open up an online bank account, deposit your crypto, and start using your BlockCard as soon as your application is complete.
