Initial Exchange Offerings (IEOs) have emerged as an excellent means of raising capital by cryptocurrency projects. IEOs are gaining popularity within the crypto space, and many people consider them to be an upgrade to Initial Coin Offerings (ICOs).
Differences between IEOs and ICOs
Token sale platform
: The primary difference between IEOs and ICOs is the platform where the token sales are carried out. In the case of ICOs, the project developers usually create smart contracts on Ethereum or other similar networks and carry out their fundraising process.
However, for IEOs, the token sales are exclusively carried out on the chosen cryptocurrency exchanges. The exchanges such as Binance have platforms like Launchpad where the tokens of a project are sold to investors.
Initial exchange offering is a fundraising model where project developers would develop tokens for their projects and sell them to investors via cryptocurrency exchanges. Unlike the ICO, IEOs are conducted on crypto exchanges, enabling project developers to reach users of cryptocurrency exchanges. The cryptocurrencies usually accepted are Bitcoin, Ethereum, and the native coin of the exchanges. Initial Coin Offerings, on the other hand, works similarly to IEOs. However, the major difference is that in ICOs, project developers handle the token sale process themselves instead of using cryptocurrency exchanges. Here are some significant differences between the two fundraising models.