So I recently got an email about IEOs and what is an IEO basically.
Can get confusing when all you’re hearing is ICO, IEO, IFO, IAO etc.
Always remember only to make an investment if you’re in a proper position to do so, you feel comfortable and you’re in this for the long term.
I am not a financial advisor and there is nothing to buy here. So lets take a closer look at crypto in general and what this IEO is all about shall we?
What Is An IEO – Some Crypto History
As you know initial coin offerings aka ICOs were the most popular form when raising capital for when you’re issuing a token out there.
Everybody got super excited about those in 2017 and part of 2018.
Guys like Ian Balina (Youtuber) made a killing off ICOs when they were pumping.
After doing some research I wasn’t even sure what these other things were.
What Is An IAO?
It’s sort of just an official airdrop. Nothing special.
What Is An IFO According To Binance
It’s basically a forked coin. So we have a couple forks with Bitcoin in the past.
Some of the Bitcoins that came out were just weird. They kinda looked scammish where as some were perfectly fine.
The original example was Ethereum and Ethereum classic or Bitcoin and Bitcoin Cash.
Those went generally well.
People will complain about one or the other.
At the end of the day they are all just cryptos forced to be added to an exchange.
If one exchange doesn’t add this fork then there will be another exchange that does.
People will just withdraw their funds and move to that other exchange.
At least that was the whole fear until there were just so many exchanges and so many forks it became a small little issue.
Forks were basically bringing money out of thing air basically.
What Is An IEO
An IEO is an Initial Exchange Offering.
This is a fancy term for you’re just partnering up with exchanges.
You’re also getting away from the word ICO.
The ICO shillers out there are saying well this is different then an ICO and in a way it is.
An IEO is including the third party which is th exchange.
You have to go through that exchange whether it’s a positive or a negative if it’s a rather large IEO.
They could of had much more money if they did an ICO. Depending on where they are they might not be able to do that.
In China for example ICOs are banned but an IEO is not.. yet anyhow.
Whatever they decided to do there’s countries and areas around the world.. that something as simple as it’s a different word could make a difference.
Facebook for example banned ICOs for a couple months. But hey IEO is ok right?
Everything was a little effected by the ICO term basically.
But this is a rather interesting format which not a lot of companies are doing.
Most of you know about forks and airdrops. A lot of them failed because it was just bringing money out of thin air.
IEOs are close to an ICO but it does have some positives.
The fact that it’s close still has people saying well it’s still an ICO or it’s still a security.
So is an IEO better?
Why do an IEO over an ICO?
Firstly you can tap into the existing user base of the exchange.
But if your user base or community is larger then the exchange you’re going to do this on it doesn’t make sense.
Now if it’s a huge exchange and huge community. Great. Then it’s a positive.
You can prevent a gas war. We are all familiar with the fees with Ethereum because a lot of the ICOs were ERC20 tokens running off of Ethereum.
Since you are working with a specific exchange it’s much more difficult to get scammed.
There was literally millions of dollars lost in Ethereum wallets basically because people didn’t know what they were doing.
There were many scams in ICOs that made most projects drop down in value.
ICOs are still relevant and there are still tens of millions of dollars going into this industry.
But people are scared and their trust has been a bit depleted.
If you have an exchange on your side that approves your project it can influence that more people will want to invest.
I would say the major plus is getting listed on exchange.
Unless you screw up in a major way or your IEO fails your most likely going to get listed.
They wouldn’t have to go through all the paperwork because they basically already did.
IEO – How To Participate
With an IEO you are able to surpass certain things. For example with ICOs you are usually forced to do some sort of white listing or KYC.
You can be in a certain where you may or may not have to do whitelisting and KYC.
If you choose an exchange that’s out of country. Lets say they are new or they just don’t care about whitelisting your KYC.
Well that is rather interesting. In terms of taxes and the fact u can continue your project and make some money with it.
That could definitely be a bonus for some people.
My IEO Conclusion
So you have to ask yourself which is the best.
Sure with ICOs there are a lot of crap coins out there.
You can’t argue the fact even if they fail it’s a very valid form of raising capital.
More people can partake in it which can be good or a bad thing.
But with more security and regulation maybe it’s getting better? That’s what people think anyhow.
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Hope you enjoyed my post about what is an IEO and it’s making bit more sense.
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