The objective of ICOs and IEOs are essentially the same, which is to offer tokens to a large group of investors. An IEO is basically an ICO except that it is launched and managed by an existing exchange instead of the organization that created the token. The exchange holds and sells the token on behalf of the project team. This small change has significant effects on the entire process.
Many of the top exchanges who are Launch Initial Exchange offering ( IEOs) have different requirements that involve holding or using their own platform tokens in order to participate in the IEO. By creating this condition, exchanges create demand for their internal tokens, which increases its value.
The exchanges benefit in that they receive new interest from those people who want to invest in the IEO, but were not already on their platform. Essentially, both the exchange platform and the IEO project are promoting each other in a way that wouldn't have happened during a normal ICO.
As the name suggests, Initial Exchange Offering is performed on the platform of a cryptocurrency exchange. In IEO, a crypto exchange functions as a counterparty and seeks to raise funds on behalf of companies. Developers mint the tokens for startups and send them to exchange where investors can buy tokens.
IEOs require users/contributors to purchase the tokens by creating an account on the Exchange platform. The project team needs to meet and comply with the exchange's platform requirements to initiate token sales. The token sale is performed on the exchange platform.
Bittrex canceled IEO for RAID.
1.5 billion TOP tokens were sold in full, orders took one second on average to proceed, transactions took 7 seconds, 5 seconds and 7 seconds respectively in each round to complete, about 130 thousand people worldwide participated and 3764 people purchased.
Status raised almost $100 million with the ICO in a day. Participants were only able to use BNB tokens for the FET sale, which generated $6 million dollars for 69 million tokens within 22 seconds.
Bittrex announced its first IEO in February 2019.
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- CryptocurrencyA cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.