IEO vs ICO vs STO - Key Differences!

While IEOs take place on a cryptocurrency exchange (already existing platform), ICOs and STOs are conducted independently on platforms built specifically for the purpose of raising funds. An ICO or Initial Coin Offering is a crowdfunding mechanism that does not require numerous verification processes. For this reason, they are easier and more cost-effective to launch. ICOs are at a low point and therefore, entrepreneurs who can afford to shell out a bit more from their wallet, opt for Security Token Offerings.

The key differentiating factor of an STO is its necessity for compliance with the regulations of governing bodies. The tokens offered to the public during an STO are called security tokens. These tokens are backed by real-world assets that enhance their credibility. Investors who fund these projects are assured financial security with the collateral that the entrepreneur or startup provides. This collateral can take the form of equity, debt, gold, and more. STOs are comparatively more expensive than ICOs. The numerous verification checks and formalities add to the costs involved.

More recently, the IEOs are making waves in the blockchain industry. By providing entrepreneurs with the golden opportunity to meet genuine investors and offering investors good sources for investment, IEOs are godsent. Moreover, with all the mania going around, now is the perfect time to launch an IEO. The novelty of the IEO is causing it to attract the attention of the public which will, in turn, bring in funds.

Benefits of IEOs

A Token Issuer relies on the exchange’s user base to fund his/her project. A renowned exchange attracts numerous genuine investors to whom your project will be visible. The media will also cover IEOs that are launched on these exchanges. Basically, listing on an exchange is a form of publicity.

Another indirect benefit to the users is the high standards that the exchange expects. Token issuers who want to pass all the screening tests ensure that their project is worth listing on the exchange and catching the attention of investors.

This fundraising mechanism has so much potential and if taken advantage of, can bring entrepreneurs success to their business. Initial Exchange Offerings have a bright future in the crypto universe. With the world moving towards a blockchain-powered system, IEOs are on the rise and will soon become the norm. If you are looking for guidance with this process, then Blockchain App Factory is the place to go. We are an IEO Development & marketing Company that specializes in providing customizable blockchain-based solutions.

Initial Exchange Offering: Entrepreneur-friendly crowdfunding with blockchain

An Initial Exchange Offering as its name suggests, is the process of raising funds, handled by a cryptocurrency exchange. The token issuers pay a listing fee to the exchange that is working on behalf of them. One of the major benefits of depending on an exchange to issue your tokens is the fact that they already have an existing user base. Moreover, if the exchange is a reputed one, there are numerous potential investors that will come across your coin.

The tasks of KYC/AML is performed by the exchange. On the whole, the token issuer will only have to pay for the exchange’s services and watch their funds increase. An IEO is a huge relief for companies who do not want to manage the whole process of issuing tokens and raising funds. Need some guidance to launch your IEO? There are few companies that specialize in blockchain-based services and can help you understand how to proceed.

Blockchain App Factory has been in the industry for years. They could definitely provide some assistance.

What is an IEO? Why are token issuers looking forward to this fundraising method?

An IEO or an Initial Exchange Offering is crowdfunding that is conducted by an exchange. In all the previous types of fundraising methods, the token issuer handled the marketing, KYC/AML procedures, token issuance, and the raising of funds. With the cryptocurrency exchange acting as a middleman between companies and investors, the token issuers are free of tedious processes that are involved in fundraising. This gives them more free hands to focus on other crucial aspects of business.

A company can list their tokens on a renowned exchange and as a result, reach out to a large number of investors that are already loyal to the exchange. Are you looking to issue your tokens with the help of an exchange platform? Then before you begin, gain a complete understanding of what it is and how it works.

Blockchain App Factory, an IEO Development company is well-known for its knowledge on the constantly upgrading blockchain technology. Check them out if you need some assistance.

Initial Exchange Offering in a nutshell!

To begin with, IEO- Initial Exchange Offering is also a fundraising mechanism like an ICO, but the point of difference is that, IEO is related with an exchange. IEO acts as a medium between crypto exchange platforms and the companies that are looking to raise funds for their venture. Initial Exchange offering is slowly evolving as business entities have started leaning towards IEOs more because of the trust factor with a legitimate exchange. There are also many other benefits involved with an IEO. Let’s see what they are.

Benefits of an IEO:

• Automated KYC/AML verification is conducted as IEOs are involved with exchanges .
• It eliminates the long, mundane traditional listing process as the exchanges directly lists the IEOs.
• The user just has to create an account on the exchange and deposit initial funds to commence the transactions efficiently.
• Attracts customers quicker, as it is combined with a reliable exchange.
• Reduced risk factors and more security.

As discussed earlier, IEO is thriving in the market gradually over other fundraising mechanisms because of its added advantages. So, if you want to develop your own IEO, it is very essential to choose the right approach to do it, to survive and uphold your business over the existing competitors. The best option would be to hire the finest, leading company currently in the market, who will offer all inclusive services for your IEO right from consultation, development, marketing, listings, launch services etc. Their IEO development services includes,

• Token/Coin creation
• Top Exchange listings
• Whitepaper creation
• Multi-currency support
• Multicurrency, secured wallet
• Cutting-edge blockchain technology
• High-end, multi-layered security

By collaborating with an already established company, you will attain the best IEO consulting solutions and your IEO will be reliable, secure. The unique features and functionalities will attract global customers to invest in, thereby raising millions for the project! Your IEO will be up and running in the market in no time, and will be developed at the most affordable rates. So, why wait? Get your IEO launched today and become viral among potential investors in the market! 

How to initiate your IEO funding?



Initial Exchange Offering (IEO) is a fundraising mechanism where the issuers create tokens for their projects and raise funds using the user base of the exchange. IEOs are an agreement between the fundraising company and crypto-exchanges like IDAX, LATokens & Binance, with some pre-conditions.

Fundraising through IEO is considered safer by the investors since the crypto-exchanges would ensure due diligence before accepting any project. Initial Exchange Offering is a new booming trend and has the potential to change the way we look at token-based fundraising. This fundraising option gives the investors the confidence of liquidity while giving the projects a ready-made user base to target their marketing efforts. Also, it reduces the burden of the KYC/AML process on the issuers as the exchanges take the responsibility of verifying investors and projects.

How to initiate your IEO funding?

Ideation/ White paper creation

We have brainstorming sessions with our team to finalize the best content to present in the whitepaper.

Token Development

Using our expertise in token development services, we develop tokens in different blockchains for your project.

Pre-IEO marketing Services

Create a hype before the tokens are listed for the project to have traction during the Initial Exchange Offerings.

Listing services

We have an expert development team who work with the technical team of top Cryptocurrency Exchanges for listing tokens.

FOMO Creation using PR to generate demand on exchanges

Create hype among the investors before and after IEO by regular press releases, updates of your projects, thereby, increasing the demand for the tokens.

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.

Our team of experienced blockchain and cryptocurrency developers create tokens for your Initial Exchange Offerings. After the development of the tokens, our technology team will work with the exchanges and list your tokens through the complicated process.