IEOs are therefore fundraising carried out in partnership with marketplaces.
What is the interest for project leaders? From the point of view of the blockchain startup, the interest is twofold:
By going through a marketplace with an established reputation, the project generates both trust and visibility among potential investors. Trust because the platform would take a reputational risk to put forward a project that is not serious, or quite simply a scam. Visibility because the platform offers it to all its clients, which reduces marketing costs to almost nothing. By going through a marketplace with an established reputation, the project generates both trust and visibility among potential investors.
Project leaders also benefit from the platform's KYC/AML procedures without having to develop their own, because only registered clients with verified profiles have the right to invest in IEOs. This allows you to better position yourself in the face of potential sanctions from regulators.
IEO increases the number of investors and traders on crypto exchanges. A new audience is gained due to the professional audit and the guarantee given that tokens are listed on the platform.
ICO was replaced with IEO, the fundraising model in which the exchange is acting as an intermediary between token issuers and buyers. This change started to affect the formation of the cryptocurrency market right away.
IEO determines the price of Bitcoin. In spring 2019, the number of Google search queries on Bitcoin increased 6 times compared to the same period in 2018. The experts attribute the recent increase in the price of the first cryptocurrency to a level of $5,000 to the new capital entering the market.
IEO equally helps to create a better product. Developers have an opportunity to focus on the project, shifting the burden of marketing to the exchange. On the top platforms, there's almost no risk of not getting any interest from traders — each token sale brings huge attention from the audience.
