Initial Exchange Offering (IEO) – New Blockchain Fundraising Mechanism!


In the crypto world, there are many strategies for fundraising. Using IEO is also one of the methods for fundraising. Already many users started to use IEO. first, you should invest some money in the exchange platform, then only a user can process the fundraising in the blockchain technology.

What is an Initial Exchange Offering IEO?

IEO is the initial exchange offering, which is a feature in crypto exchange platforms. It is a token sale place to raise funds. In IEO, a user should have a token to exchange a cryptocurrency

Everyone can not get an IEO-like ICO, because ICO can be done by any project developer. exchange owners can only develop IEO. If you have an account on an exchange, you can easily integrate the IEO module. If you don’t have an exchange then a user should create an account in the exchange platform so the user can integrate the IEO module.

IEO is actually a crowd fundraising process and it is also an evolution of ICO. it gives the alternative trade for traders in the trading market.

Reason to Choose IEO:

Everyone’s question will be “Why should I choose IEO?the answer will be a trusted module. Because IEO is a trusted feature in which the investors can raise their funds.

In ICO there will be the possibility of many scammed tokens because of some project developers. But in IEO there will be no way of scammed tokens.

Cryptocurrency will be the future because digital money rules the crypto world. IEO will be the best strategy for raising the funds for startups, entrepreneurs, and investors will also get more income by integrating the IEO module. Here exchange owners will get more profit.

How does an Initial exchange offering IEO work:

It is a feature enabled in the exchange platform. By using this feature exchange owner will get more profits. There will be no contribution to smart contracts, instead, the user has to create an account in the exchange platform.

The startups or entrepreneurs should give money on a fixed price which is said by exchange owners. After receiving cash in the wallet, the exchange owner will give a token to a user or client. 

In other simple words, if a client or a user does not have an IEO module or exchange platform. The exchange owners will create an account for exchange with IEO module integration. Then the exchange will give a qualified token to a client. 

Advantages of Initial Exchange Offering over ICO and STO:

  • IEO is more secure compared to ICO and STO. so the user or client can protect their funds from scammers
  • Only exchangers can generate IEO so that there will be no scammed tokens but in ICO there will be a possibility of scammed tokens.
  • IEO is based on the crowdfunding process, so the clients can get more profits.
  • IEO is a trustworthy feature enabled in an exchange platform.
  • Initial exchange offering is one of the decentralized fundraising models that helped many traders gain more profits and gave strong confidence in the trading market.
  • When it comes to projects compared to ICO and STO, IEO is easier for projects.
  • IEO has Higher Liquidity compared to IEO and STO
  • IEO avoids exploitation and requires only AML/KYC from clients or users.


These three cryptocurrency fundraising methods can also rule the future.  know the primary difference between ICO vs IEO vs STO


For ICO, there will be less trust because developers will issue the wrong tokens. But in IEO exchangers will give a token and it gives you strong trust whereas STO provides high-level trusted tokens for the users or clients.


ICO targets everyone who is waiting to create a coin and raise their funds. IEO targets only the exchangers with an exchange account. STO targets for the users who are waiting for the high-level security token.

Marketing and Advertising

For IEO, exchangers will take care of marketing and advertising. In ICO, the project team will take care of marketing whereas for STO the team behind the project will take care of marketing.


For IEO, the transaction will be held on their website and it directly happens between the token issuer and investors. For ICO issuer is responsible for transactions. whereas STO transactions will happen on the issuer’s website.


IEO and STO are highly secure compared to ICO because the transactions will be only happen in their exchange platform. but in ICO the transaction will be happening on the ICO project developer website. So it is highly unsecured.


Liquidity is important in trading. IEO is higher in Liquidity compared to ICO and STO.


For ICO there will be no administrator, but in IEO, the exchanger will be the administrator. whereas for STO issuer will be an administrator.


In the crypto world, digital money plays a vital role. everyone around the globe is investing their money in different platforms. The exchange platform is also one of the good platforms to invest their money with the IEO module. It is a tricky and good strategy for startups, entrepreneurs, and investors to raise their funds by using the IEO module in the exchange platforms. The main advantage is, that exchange owners will get more profits by using the IEO module.

How can Icoclone guide you?

If you are looking for a crowdfunding process in the cryptocurrency market, Then we people in Icoclone, one of the best IEO development companies in the industry. we will create an advanced IEO module in addition to the ICO Website for your fundraising process! 

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