We all know that ICO is an acronym that means Initial Coin Offering, which is how funds are raised for a new cryptocurrency offering. It is a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It’s somewhat similar to an Initial Public Offering (IPO) in which investors purchase shares of a company. ICOs are a relatively new phenomenon but have quickly become a dominant topic of discussion within the blockchain community. Many view ICO projects as unregulated securities that allow founders to raise an unjustified amount of capital, while others argue it is an innovation in the traditional venture-funding model. While, IEO's An initial exchange offering (IEO) allows companies to sell tokens to investors to raise capital. This makes them similar to initial coin offerings (ICOs), but there are a few key differences. It is a new approach to crypto-banking that is catching the attention of ICO investors around the world. IEOs can provide many benefits compared to ICOs. They offer greater security for users, improved transparency, bring about a fairer system that can benefit newcomers, and give users a sense that it is a reliable banking system.
ICO has been a buzzword for quite a few years now.
IEO is one of the newer words that puts a different spin on an old thing.
ICO stands for
Initial Coin Offering and is the crypto version of an
IPO which is condiered an
Intial Public Offering. An
IPO is a crowdfunding used in order to raise capitol for a company that aims to be a public traded enterprise. So, an
ICO is the same thing but with cryptocurrency. An
IEO is an
Initial Exchange offering.
The
SEC which stands for
The Securities & Exchange Commission has been cracking down on
Initial Coin Offerings lately and so the
IEO was born out of necessity. Bering that most big time exchanges are regulated with a
KYC/AML (
know your customer/Anti-money laundering) policy, it makes investors feel a little bit safer and at ease knowing that a company has taken the necessary regulatory procedures by using a somewhat regulated and well known exchange.