IEO initial exchange offering is an advanced and transparent crowdfunding strategy for Blockchain based projects. In IEO initial exchange offering, exchange plays the most important role. In IEO, the exchange works as an administrator and check the project meticulously. And then allows Start-up Company to launch their token on the platform of exchange. The member of cryptocurrency exchange ensures that smart contract is correct and everything should go in the right direction. The IEO model enables Blockchain start-up to raise the funds from the cryptocurrency exchange. Unlike ICO initial coin offering, IEO token sale not opened for the general public, rather only active member of the exchange can participate and buy new coins.
How does an IEO work?
The working model of IEO initial exchange offering is simple and transparent. Before conducting the token sale on their platform, the team member of exchange does an agreement with the project team. The exchange goes through the project meticulously, check each aspect of it and make sure that project is authentic. Once the exchange is satisfied with the project, they allow the project to launch on its platform. Exchange announces the date of token sales as well as the fixed price of per token. Anyone who wants to participate in IEO token sale, they have to create an account on the exchange platform and fund their wallet so they can be ready to buy the token.