Initial Exchange Offering
An Initial Exchange Offering, or IEO, is a new form of Initial Coin Offering (ICO). While they are structured in much the same way, the former is facilitated through authorized exchanges.
By structuring a fund-raising event in such a manner, companies and investors alike, benefit through a much more transparent and structured approach.
Specifically for the investor, hosting exchanges, such as Bittrex, vet the companies prior to offering tokens. This process is beneficial in weeding out scams and incompetent projects – while not perfect, it is one extra layer of security.
In recent weeks, there have been two wildly successful examples of IEOs. These were held by Bittrex and Binance, respectively. These two events saw the allotted amount of tokens sell out in under 30 seconds each – clearly a promising sign of investor interest.
As there have only been a select few instances of this form of fund-raising, it is too early to tell if this type of structuring will take off. For the time being, much of the excitement towards ICOs seems to be redirected towards STOs.
No Thank you
As with most products and services, there are always going to be companies and people pushing the boundaries on what is acceptable. This is now the case with this new means of fundraising event. It has recently come to light that ‘Bgogo Apollo’ exchange has taken it upon themselves to host a pre-sale of tokens that have not been released yet. This sale is taking place without the authorization of the company set to release them.
The situation has prompted a statement from the company, Algorand, warning potential investors that they are not affiliated with this sale.
This United States based cryptocurrency exchange is one of the most respected and popular in the world. They were also the first prominent exchange to host an event such as the IEO.
For full details on the IEO selection process utilized by Bittrex, click HERE.
OKEx represents another of the big-name exchange currently jumping into the fray. They have just announced an upcoming IEO which will see the sale and distribution of BLOC tokens.
OKEx indicates that this particular IEO will commence on April 10th. It marks the inaugural IEO to take place on the exchange’s platform which was announced on March 12th.
In Other News
In recent weeks, we have detailed events pertaining to the newly popular IEO. Check out the article below to learn a little bit more about some of these events.