What is an IEO?
An Initial Exchange Offering, commonly known as an IEO, is a fundraising event administered by a crypto exchange. In contrast to an ICO where the project teams carry out the fundraising, an Initial Exchange Offering means that the fundraising process will be executed on a well-known exchange’s fundraising platform, such as Coinstore IEO where users can purchase tokens with funds directly from their own exchange's account.
The ICO fever in 2018 turned out pretty risky for individuals wanting to join new Web3 project token releases, as they could accidentally transfer funds to the wrong wallet, not to mention that sometimes project teams pull the rug and drain away the assets.
What are the Benefits of an IEO?
For an individual user, an IEO is easy to join as they don’t need to manage on-chain transactions with numerous wallets on different blockchains. Instead, a user only needs a Coinstore account and some funds in their account to participate completely through the trusted website’s interface. Additionally, the exchange is staking its reputation behind the projects on its platform, offering a higher degree of trust.
For a project looking to raise funds, an IEO offers the promise of an immediate userbase that can see their product, allowing them to focus only on the development of their product.
If you plan to take a tour of an IEO on Coinstore Launchpad, it is recommended that you read through the entire Coinstore Support Center articles for the specific token you wish to purchase.