An Initial Exchange Offerings is a fundraising technique like ICO, but the difference between an ICO and IEO is that IEO relies on the exchange for the whole fundraising process. In IEO, the tokens after the legalization process get listed directly into a top-rated exchange.
Listing tokens in exchanges don't require separate marketing of tokens as the exchanges already have a notable amount of traders. The exchanges take up the response for whole IEO process and even fundraising takes place in the exchange sites.
The main difference between ICO and IEO is that in IEO already existing exchanges manages the entire process and in ICO the organization which creates the token does it.
One of the key benefits of IEO is that here the crowdsale is conducted on an exchange which becomes like a middle man and counterparty that monitors every project processes. Exchanges basically screen the IEO projects process to maintain their good reputations. This reuse of centralization can be seen as a counter to the basic idea that created Bitcoin and open blockchains in the first place, which was to be a completely P2P network.
The main advantage of IEO over ICO is that exchanges will have an existing community of audience which IEO can make use of. The exchange’s existing resources for marketing make it easier for a new project to get discovered by a larger investor and thus launch its token offering with great success.
Token creators need not have to worry about fundraising security as the exchange will manage the whole IEO process through smart contracts.
Exchanges will have a well-organized legal structure which makes them regulatory and provides protections for new start-ups who normally processes IEO in it. Some Well-developed exchanges offer legal advice and access to a full legal team to help new startups travel through the hazards in the blockchain industry.
Bitdeal - Leading Intital Exchange Development Company furnishes the entire services related to IEO.
Bitdeal have a separate team of experts who provides 24X7 consulting service.Contact them anytime anywhere to know more IEO services.
Source : Bitdeal