lEO

IEO stands for Initial Exchange Offering.

It’s a type of fundraising event in the cryptocurrency and blockchain space, where a crypto project sells its tokens directly through a cryptocurrency exchange, rather than doing it independently like in an ICO (Initial Coin Offering).

🔑 Key Features of an IEO:

• Conducted on an Exchange: The token sale happens on a crypto exchange platform (like Binance, KuCoin, or Huobi).

• Exchange as Middleman: The exchange handles the sale process, including vetting the project, conducting KYC/AML checks, and providing a platform for token distribution.

• Immediate Listing: After the IEO ends, the token is usually listed for trading on the same exchange almost immediately.

• User Trust: Since the exchange vets the project, it gives investors a bit more confidence compared to ICOs, which are riskier and more prone to scams.

🧠 Example:

A new blockchain project wants to raise funds by selling its token. Instead of doing it themselves (like an ICO), they partner with Binance. Binance promotes the sale, users buy tokens directly through their Binance accounts, and after the sale, the token gets listed on Binance for trading.

✅ Pros:

• Higher trust due to exchange involvement

• Easier access for investors

• Better security and regulation (compared to ICOs)

❌ Cons:

• Exchanges take a cut of the funds raised

• Limited investor access (depends on the exchange and regional restrictions)

• Still some risk if the project isn’t solid