I see two big reasons why ICO is now replaced by IEO. One, there is more trust here compared to the usual ICOs because the exchange (assuming that it is reputable as well because there are now many exchanges springing almost everyday and many of them are just here for the money) can be providing additional layer of security as long as the exchange is doing its job of vetting on the project and the people behind it so that we can be sure that it is real, genuine and would have less chance to run once they have the money on the bag. Two, this is providing a better liquidity for token buyers because the coins/tokens are automatically taken in by the exchange. We know that there were so many ICO projects in the past that failed to get into even just one exchange.
As to the concern that exchanges can be getting more powerful...that can be true only because maybe we are just concentrating on Binance but when there can be more reputable exchanges doing the same thing, then the so-called power can easily be diluted or minimized. We have to remember that even without the IEOs, in my opinion, exchanges have their own inherent power as they can decide which projects they would like to be on board and which to reject.
If you desire to participate in an IEO; here are the following steps you should take:
Research for an IEO: Since most of the blockchain based startups are financing their projects through ICO, the IEO’s are comparatively rare and you can just check the startup’s web-page or social media pages to see if they will be conducting an IEO or ICO.
For instance, Moozicore WORLD’S FIRST MUSIC STREAMING
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https://tokensale.moozicore.com/Find out which exchanges will be listing: Sometimes only a single exchange might be participating but find out which one will be.
Selected and approved cryptocurrency exchange platforms will be selling MenaPay Tokens. MenaPay’s official website will be announced soon!
Sign-up on the Exchange: Once you have figured out which exchange will be participating in the IEO; you can complete the registration; meaning a KYC/AML verification at the exchange and sign-up might take a couple of hours to a few days. Thus, make sure you are not doing it in the last minute.
Find Out Which Cryptocurrency Will Be Accepted: Even though Bitcoin and Ethereum are the most commonly accepted cryptocurrencies; some exchanges might use IEOs to promote their own native token.
Hold-up Until the IEO Starts!: You can now send your desired amount of cryptocurrency to the exchange. Later, you will be receiving the tokens in exchange.
Even though IEO is a new phenomenon, there is no doubt that it will continue to grow over time and make the cryptocurrencies and exchanges more tempting to a wider market!