In the crypto world, there are other investment opportunities besides long or short-term buying and selling of any crypto currency. IEO is one such opportunity and has become very popular with crypto investors over the past few years.
In this article, we will try to convey all the details about IEO, along with the answer to the question of what is IEO.
What is IEO?
IEO; It is the initial public offering of a cryptocurrency on centralized crypto exchanges before it enters the market.
The term IEO is the abbreviation of the initials of Initial Exchange Offering and it means Initial Exchange Offering in Turkish. IEO is a fundraising method to support various projects on cryptocurrency and blockchain. IEO refers to the sale of a blockchain or cryptocurrency project on a centralized cryptocurrency exchange, before listing the crypto assets of the project.
Cryptocurrency project owners may need financial support when they want to launch their products and continue their work on the project or add new features to their projects. Cryptocurrency or blockchain-based projects have their own crypto assets called tokens. We can say that the project owners who need this support sell the tokens belonging to their own projects before they start to be traded on the stock exchanges.
How to do IEO?
The developer of the project, who wants to make an IEO, puts the tokens of the project he has developed for sale in the form of an initial public offering on a central cryptocurrency exchange. Investors interested in this project and the token belonging to the project buy the tokens belonging to the project. Thus, project developers raise funds for their own projects. Investors also become partners in these projects in a way. Thus, users can profit as the value of the project they invest in increases.
Users come to an idea by examining the technical documents called whitepapers of IEO projects, which will be offered to the public for the first time, and examining the accuracy of the project.
What Does IEO Do?
With IEO, project developers can raise funds for themselves. Users who invest in IEOs can also increase the value of their own financial assets as the project stabilizes.
Ultimately, users who invest in IEOs buy crypto assets belonging to the project. As a result of the steady growth of the project, they can earn a certain amount of money from their investment.
Project owners who collect funds for their projects can support their projects and develop their projects with the funds they collect. In this way, their projects can gain value and ensure project stability in the long run.
Differences Between ICO and IEO
IEO and ICO are actually very similar, but there are some important differences between the two concepts. The most important difference between IEO and ICO is that IEOs consist of projects that are offered to the public for the first time on centralized exchanges, while ICOs consist of projects that are offered for the first time on decentralized exchanges.
Since IEOs are held on centralized exchanges, projects to be IEOs are often subject to stricter control. Also, a project that has been IEO is listed on the central exchange where the IEO was held. In ICOs, there is no such listing requirement.
You can find detailed information about ICOs here.
How Can I Participate in IEOs?
We have said before that IEOs take place on centralized cryptocurrency exchanges. To invest in various blockchain-based projects with IEOs, you first need to open an account on centralized exchanges. The most well-known centralized exchanges where IEOs are held can be listed as Binance, KuCoin, Huobi, Gate.io, MEXC, FTX.
After registering with these exchanges, you can be informed about IEO announcements by examining the announcements of the exchanges and communication channels such as Twitter. In the texts of the IEO announcements, information about the project to be held and how to participate in the IEO of the project are given. You can also participate in IEOs by following the information and instructions explained in the announcements and become one of the share partners of the project.
Frequently Asked Questions About IEO
In this section, we will clarify the most frequently asked questions and the most frequently asked questions about IEO. Although the answers to some of the questions are written in the text above, we have compiled the answers to the questions that will be a summary for you below.
What is IEO Expansion?
IEO expansions to Initial Exchange Offering and the term IEO consists of the first letters of these words.
What Does IEO Mean?
IEO is defined as Initial Exchange Offering.
How to Invest in IEO or Buy IEO?
IEOs are invested through the central crypto exchange where they will be offered.
How to Do an IEO Review?
In order to examine the IEO project, the project’s website, social media accounts and the whitepaper, which is the technical document belonging to the project, can be examined.
Where Can I Find IEO List?
The exchanges where IEOs are held announce the IEO they will hold in their communication channels in advance. Besides, there are websites that publish new IEO list or IEO calendar. You can find news about IEO on these websites and communication channels of central exchanges. In addition, you can check the IEO lists you see on the internet websites from the central stock exchange sites and communication channels.
ICO or IEO?
It would be wrong both legally and ethically to offer an opinion or an option that one is better than the other.
But we have explained the differences between the two for you in items:
- IEO is done on centralized exchanges. ICO is done on decentralized exchanges.
- A cryptocurrency that is in the IEO process is listed on the central exchange after the IEO process. There is no obligation to be listed in the ICO.
- Users can participate in ICOs with an anonymous identity. In order to participate in IEOs, users must verify their identity and raise their account level.