Benefits of raising funds using IEO For fundraisers
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What is an IEO?
The aim behind launching an ICO and IEO is usually the same. Essentially, it is to provide tokens to a large group of investors. However, there is one major difference. IEOs are 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. As the exchange platform sells tokens, token issuers pay a listing fee along with the percentage of tokens sold during the Initial Exchange Offering. In turn, tokens are presented on the platform and listed after the end of the IEO.
Advantage OF IEO:
- The issuers don’t have to put extra effort and money into the exchange. This proves to be the most prominent advantage of IEO over ICO.
- The token issuers will be able to take the proper service of a wide customer base that the exchanges will be already having. This expands their scope of making their project reach more people.
- The exchange will effectively take care of the whole KYC and AML of the issuers.
- In the case of IEO, the inventors send tokens to the exchange, which in return sells the token to the issuers through their particular platform at some specific price.
- The IEO platforms operate within an organized legal structure that protects the startups from each and every negative consequence.
Benefits of raising funds using IEO (For fundraisers):
- No need to create an audience from scratch
- Traders in the exchange are already KYC/AML verified
- Easier to issue tokens compared to ICO and STO
We have discussed the advantages of an Initial Exchange Offering (IEO). If you want to raise funds using IEO, you will require a team of expert blockchain developers. Also, you may have to work on the technical part and the business part. You can hire a trustworthy IEO development company. Out of the many companies in the market, a Blockchain development company got my attention. Zab Technologies, a prominent IEO Development company that offers the best end-to-end IEO development services.
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