Gathering money was among the first thing cryptocurrency entrepreneurs figured out as the young industry developed. Initial coin offerings (ICOs) afforded a way to sell tokens to the public and raise millions of dollars from thousands of users in a short amount of time.
ICOs were an alternative to IPOs, which gave companies an easy way to raise money for their projects. ICOs are administration free and aren’t regulated, so basically, they can be run by anyone as a means of fundraising. The same idea applies to IEOs. The IEO is an evolved form of token offering where an exchange operates the token sale itself. The transfer takes upon itself the due diligence of the project, assessing the viability of the products being developed, risks, financial condition, and market position. The fact that the trading platform takes reputational risks in the offering increases the trust level for potential token buyers.
An IEO is still technically a form of ICO, but the main difference lies in where the coin or token is proposed. As you might be able to guess from its name, an IEO offers tokens through a partnering exchange, rather than directly to investors. While ICO allows any contributors to buy the token for sale by sending funds into a specific address, IEO requires contributors/users to obtain the token with the exchange’s accounts. In a public ICO, just about anyone can participate, but in an IEO only members of that given exchange can purchase the tokens. That said, there’s little stopping you from joining an exchange if you’re interested in a specific coin due to be released, so there aren’t creating any hurdles for the average retail investor.
The significant problem with ICO is that any third parties do not control it. Anyone can launch an ICO, as long as you have a white paper to persuade investors to put funds to your company. On the other hand, IEO is a very, if not entirely, various model. In an IEO, an exchange is an administrator. To conduct an IEO, the project team must meet and comply with the exchange’s requirements to launch the token sale. Contributors are, therefore, protected by the exchange.
Conducting an initial coin offering through an exchange might sound safer because it addresses one key issue that plighted many an ICO; the option to sell the tokens at a later date. Coins were often sold through an ICO with only promises that they would later be available on exchanges. In some cases, tokens offered through an ICO were never listed on exchanges. When buying tokens through an IEO, you buy in the knowledge that the exchange has done some due diligence and is launching a coin it believes has a future. After all, it’s in an exchange’s best interest to not burn its customer base by issuing dodgy tokens.
Although some may claim that the exchange may go along with the project team to scam customers, this will put the exchange’s reputation at risk. Any exchanges that look for a sustainable business model would not recognize taking such a wrong move. On the customer’s side, not only will the exchange help them review the projects and filter out scams, but it also provides better liquidity for trading afterwards as a large user base is already guaranteed. The exchange will also offer a convenient platform for contributors to manage their funds as all assets can be stored in the exchange account instead of different wallet addresses.
Comparing to ICO, the risk of IEO is much lower for both the project team and contributors. With all the scams and frauds out there, an IEO is no doubt a better model to the contributors/customers. Despite more processes required for both project teams and contributors for the token sale, the extra protection offered is worth the cost.
Geco.one IEO Information
Geco.one is a platform that enables you to safely invest in the cryptocurrency market using skills and knowledge of experienced traders. We help you to invest in cryptocurrency pairs by entrusting your resources to experienced traders as well as providing you with all the tools necessary to become a crypto-trader yourself. Geco.one is a global enterprise that is fully transparent, described in detail, and perfectly prepared. We guarantee the full implementation of the project through participation business professionals from the IT industry, finance, trading, and significant capital groups operating on global markets.
Geco.one believes that IEO strategy can eliminate scams in the fundraising process, which has been a significant issue in ICO process. By making contributions through Coineal & LATOKEN, investors will get to lower the chances of losing their funds to scammers. By hosting Geco.one IEO on the Coineal & LATOKEN, crypto exchanges are directly affirming the credibility and reliability of the Geco.one project.
By making contributions through Coineal & LATOKEN, investors will get to lower the chances of losing their funds to scammers. By hosting Geco.one IEO on the Coineal & LATOKEN, crypto exchanges are directly affirming the credibility and reliability of the Geco.one project. Listing the GEC token on Coineal & LATOKEN would be more comfortable after hosting on IEO making the process less tiresome for all the parties involved here. Our IEOs start at COINEAL & LATOKEN on 01.07.2019.
Listing the GEC token on Coineal & LATOKEN would be more comfortable after hosting on IEO making the process less tiresome for all the parties involved here. IEO benefits are too good to be ignored by increasing the level of trust among projects. It is still in the growing phase and can be a reap of profit for the traders in the future! We believe that IEO will be the future in the crypto industry, which cannot be denied!
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