Initial Exchange Offering

An Initial Exchange Offering is a fundraising event conducted on the platform of a centralized cryptocurrency exchange. The exchange acts as a gatekeeper, vetting the project and managing the token sale process on behalf of the issuer.

This model provides projects with immediate access to the exchange’s existing user base and liquidity, which can significantly boost token visibility. For investors, IEOs often offer a perception of increased security due to the exchange's due diligence process, although this is not a guarantee of success.

The exchange typically takes a fee or a percentage of the tokens sold in return for hosting the sale. This method simplifies the technical barrier for participants, as they can purchase tokens directly using their exchange accounts.