Initial Exchange Offering (IEO)

An Initial Exchange Offering (IEO) is a fundraising mechanism by which cryptoassets are initially made available for sale to the general public through exchanges or launchpads. IEOs function similarly to ICOs, with the key distinction being that IEOs employ intermediaries to facilitate transactions rather than using a project’s own platform, as ICOs do. IEOs initially gained popularity from the perception that they are a safer alternative to ICOs, with some arguing that exchanges can better exclude fraudulent or malicious actors from these transactions through KYC and AML measures.