An Initial Exchange Offering or IEO is an evolution of the Initial Coin Offering or ICO. While anyone in the world is able to start and participate in an ICO, the IEO is more restricted. In an IEO, a centralized exchange serves as a platform for a project’s initial sale of tokens. The ICO has been king of fundraising for crypto projects for years.
Should you invest in 'initial exchange offerings'?
The SEC’s Office of Investor Education and Advocacy is issuing this alert to urge investors to use caution before investing in so-called “initial exchange offerings” through online trading platforms. Initial exchange offerings (IEOs) are a recent development in the rapidly evolving digital asset space.
What is the difference between an initial coin offering and exchange offering?
With an Initial Coin Offering it is up to the developer to make sure that the smart contract is right, the security is tight and that everything goes as planned. With an Initial Exchange Offering, these obligations need to be done by the exchange.
What is an initial decentralized exchange offering?
(What is an Initial Decentralized Exchange Offering aka Initial DEX Offering) So Dex means decentralized exchange and a decentralized exchange is a cryptocurrency exchange that allows users to have access to the private keys of their wallet. And why? That’s huge.
