IEO and ICO – The Key Differences

An ICO is issued by the company’s website, whereas the IEO is handled by the exchange itself. The sale of the tokens is conducted by a trusted exchange in an IEO as opposed to the company when it comes to ICO. Since the exchange conducts KYC/AML on its users, the onus of verifying and validating the investors does not fall on the company in an IEO. In an endeavor to protect its name, the exchange will validate the company, and it significantly reduces the probability of frauds and scams when issuing an IEO.

The Advantages of IEO over ICO:

Trust:

One of the greatest advantages that IEO brings to the table is trust. The cryptocurrency exchange platform meticulously analyses every project before it lists their tokens on the exchange. This process brings down the instances of scams and dubious projects from raising funds through exchange platforms.

Security:

On one side, it is the interest of the investors that are protected by IEO ensuring that no malicious companies are listed. On the other hand, since the exchange handles the KYC/AML process, the companies can be assured that their tokens are being bought only by genuine investors.

Ease:

The startups that issue tokens stand to benefit from easier, streamlined and a flawless process of launching IEO on exchange platforms. This is comparatively easier than the classic ICO model where they have to do everything on their own. Yes, it might cost the fundraising organizations the feet that they have to pay to the exchange. However, since the exchange can market it for them, the marketing budget is relatively lower. In addition to this, since an exchange already has an existing customer base, they do not have to start from scratch on day one.

Listing:

In ICO, the company had to undergo the tedious task of listing their tokens on exchanges. When it comes to IEO, the exchange in itself takes care of listing the coin after the crowdsale is over. There were instances where the listing fee was as high as 20 bitcoins and the exchanges have demanded a 10% cut of the tokens. In all of these, the relative ease of the entire process wins brownie points for IEOs.

Summing up:

At Blockchain App Factory, we have the right kind of experience, team, and expertise in developing and marketing tokens for your Initial Exchange Offering projects. We can get you to start your crowdfunding campaign instantly through our strategic partnerships with leading Cryptocurrency Exchanges. We provide end to end services including IEO development and IEO marketing enables you to raise funds without a hassle.