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What is an IEO and How Does It Differ From an ICO?

IEOs are the newest innovations of the crypto industry which are free from any bans presently. Here is a quick read on what IEos are and how they differ from ICOs.<br>

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What is an IEO and How Does It Differ From an ICO?

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  1. What is an IEO and How Does It Differ From an ICO? Ban on ICOs in multiple countries have left crypto startups in a frenzy to find another alternative to fund their projects which is why a lot of companies are now turning to IEOs. IEOs are the newest innovations of the crypto industry which are free from any bans presently. What is an IEO? An IEO (Initial Exchange Offering), is conducted on an already existing platform of a crypto exchange. As opposed to ICOs (Initial Coin Offerings), an IEO is facilitated by a crypto exchange on behalf of a company that is looking to raise funds for its freshly issued token. As an IEO is conducted to ensure the sale of a token on an already existing exchange’s platform, token issuers pay a listing fee with a percent of the token being sold in the IEO. In exchange, the token, against which funds are being raised by a cryptocurrency startup, are sold on the established exchange’s platform, and the coin is then listed on the exchange. The established crypto exchange is incentivized by a percent of the coin being sold by the startup, to assist with the startup’s marketing operations. However, the participants of the IEO do not have to send contributions to smart contracts, which was the case in an ICO. Conversely, participants create a user account on the established exchange where the Initial Exchange Offering is being conducted. The participants then use the funds available in the exchange’s wallet to buy the fundraising company’s tokens. ICO vs IEO It is not just the fundraising platform that differs in these two crowdfunding methods. There is no compulsory AML/KYC requirement when it comes to IEO however, it was a mandatory need for a participant to take part in an ICO. The marketing budget needed for an ICO were relatively higher as compared to IEOs as the exchange facilitating the token raise will actively advertise the token with its already established long list of customers. In case of an ICO the token wasn’t immediately listed in any exchange, conversely in the case of an IEO, the token is immediately listed on the exchange after the crowdfunding is over. Visit Our Website: ​pcex.io

  2. Conclusion IEOs definitely bring forth a newer and a much more updated version of an ICO which makes it more attractive to both startups and investors. Visit Our Website: ​pcex.io

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