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.
IEOs are generally considered safer because the user is no longer (fully) responsible for making sure that the coin isn't a scam. The exchange that is hosting the token sale does it. Of course, everyone willing to invest in a new altcoin should 100% research it themselves and know as much as possible about it before they commit to it. However, scammers tend to be rather convincing at times, and some users do not know how to recognize a scam, so if they have a trusted exchange that says that the project is fine, that is good enough for them. Now, just because the exchange has given the green light to a project doesn't necessarily mean that it is good or that it will be successful. But, it is generally a better option than just running across a random token sale and participating. In the end, these token sale models have helped the industry evolve in a way, for better or worse. IEOs are also better for projects, as the exchange handles the advertising, and developers have more time to put into the development itself, instead of running around in the dark, hoping that they are doing enough to promote their token.