IEO: ICO 2.0 or Scam? feat. On Yavin of Cointelligence
With ICOs failing to serve the demand for alternative crowdfunding in crypto and STOs being too similar to the system everyone in crypto is trying to disrupt, what is left for blockchain startups wanting to tokenize the world? Introducing IEOs (initial exchange offerings), the latest hype in the crypto sphere.
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There are an amazing 331,000 results in Google SERPs for the term “initial exchange offering.” But what does it stand for? In short, an IEO is a token generation event-fueled fundraising mechanism initiated and administered by an exchange. An IEO differs from an ICO in the following manner:
- The exchange is responsible for raising the funds for the projects, instead of the project/company itself.
- The exchange manages the distribution of tokens in the case of IEOs, whereas in the case of an ICO, a smart contract created by the company/project team handles that.
- The exchange is responsible for the marketing (although the project team can conduct additional marketing) for the IEO, whereas in an ICO, the marketing is conditioned by the team or external contractors, through bounty and airdrops.
- The exchange handles the due diligence and filters the scams.
Read more about IEOs here.
In this episode, Grant Gulovsen & Roxana Nasoi from the Cryptolaw Podcast discuss initial exchange offerings (the good, the bad, and the ugly sides) with our guest On Yavin, Founder and CEO of Cointelligence.