IEO (Initial Exchange Offering)


An IEO is a cryptocurrency fundraising mechanism that is managed by an existing crypto exchange on behalf of the startup that seeks to raise funds with its newly issued tokens.


As the exchange takes a percentage of the tokens sold by the startup, the IEO participants trust the exchange to vet the projects that are accepting investments. This has made IEOs popular as a safer alternative to ICOs because the exchange assumes a level of responsibility for due diligence.