Bitcoin Forum

1. Trust
One of the main advantages of IEOs is trust. As the crowdsale is conducted on a cryptocurrency exchange platform the counterparty screens every project that seeks to launch an IEO on its website. Exchanges do this to maintain their good reputation by carefully vetting token issuers.

Therefore, IEOs can eliminate scam and dubious projects from raising funds via cryptocurrency exchange platforms, and it becomes much harder to scam contributors with IEOs.

The RAID IEO case is an excellent example. Recently, Bittrex announced that it had canceled its IEO for the RAID project a few hours before the start of the crowdsale. The reason for canceling RAID’s plan to raise $6 million from contributors was a terminated partnership between RAID and the e-gaming data analytics company OP.GG.

According to Bittrex, the partnership between the two companies was a vital part of the project, and when the cryptocurrency exchange became aware of the event, it decided to cancel the token sale as they believed it was not in the interest of Bittrex’s customers.

2. Security
Token issuers do not have to worry about the crowdsale security as the exchange is managing the IEO’s smart contract. The KYC/AML process is also handled by the crypto exchange as most service providers do KYC/AML on their customers after they create their accounts.

3. Easier for the projects
Token issuer startups benefit from the more flawless process of launching IEOs on exchange platforms – compared to doing their ICOs “on their own.” While the fundraising organizations have to pay fees for listing and a percentage of their tokens, the exchange will help them with marketing. So, startups launching their IEOs require a lower marketing budget than if they decide to go with an ICO. Moreover, token issuers can take advantage of the exchange’s stable customer base to receive more contributions to their projects.

4. Listing
As token listings are also “in the deal,” it is a natural process that the cryptocurrency exchange where the IEO is conducted lists the coin of the startup after the crowdsale is over.

While IEOs seem like a more secure and efficient alternative to ICOs, the costs associated with token sales can be high for startups. Listing fees can go as high as 20 BTC, while exchanges can even take a 10% cut from the tokens of the fundraising companies.

Source:  https://cryptopotato.com/what-is-an-initial-exchange-offering-ieo-and-how-it-differs-from-ico/

The only advantage that I see from IEO is the "listing" because of some the ICO`s cant be listed on trusted exchanges, while for AML I still don't have trust in this. IEO maybe better at some point but still, after all those promises no one can ensure an investor event if its AML compliant in the future its project to grow.

I also consider listing as an advantage of IEO. The Initial Exchange Offer as it stands is the new wave of coin offer. I think many icos failed because they were not able to be listed but with IEO, it is "almost" certain that it goes straight to public.

in my view ico and IEO depend on the project team, the advantage of ico is that it is quickly recognized in public marketing so that it easily reaches hardcap, and the lack of ico is prone to failure to enter the market.
the advantage of the IEO is that it is guaranteed to enter the market, but sales marketing is not maximal, so it is sometimes slow to be traded in the market too

Let me be honest here.
I saw the title, checked the first post to see if it's not a typing error for ICO and then asked my self what the hell is an IEO???

Now, reading this I see a lot of problems with it:


Yeah, like trusting Bitcoinica, MtGox,  Bitfloor, Cryptisy, CoinEX , Mintpal, Youbin, Coinbin, Cryptorush ,QuadrigaCX, Gatecoin , should I add more? Cause I got a lot more!!!


Same as above.


I read this as easier to fool noobs in buying worthless shitcoins that don't even bother to have a plan.

Just reinventing the ICO concept to try and milk some more money in a bear market and after a period in which 99% of all ICOs have come with nothing at all and 1% is going to follow.

1. The trust you mentioned above is questionable because people invest because they trust the host exchange and not the project (atleast 80% of projects)

2. You are right here, you don’t have to share your kyc details to anyone except the exchange platform

3. It is true that the projects end up having a good start and a good beginning , what happens to the future ? When the hype is gone ??

4. I’m not sure how listing works

For the first point I strongly agree, because with famous exchanges of course investors are very trusting of the project. In my opinion, most investors also do not fully analyze the project. Because if anything happens to the project. Of course the Exchange will tarnish its name.

You said advantage and disadvantages of IEO, and you only stated the advantages. the advantages was well stated. Because why people rush in to buy from IEOs is because of the trust they have on the exchange. I don't know about the listing but security is also an important aspect why IEO could boom

Too many advantages you listed. but only one disadvantage. Some of the things you listed cannot be considered as advantages in crypto world.
The true disadvantages are too numerous in my opinion. I don't want to say much about the them. All I know is that we will eventually know the true agenda in 1-2years time

In this cryptospace, anything is possible and only time will tell which is genuine or not. IEO has lot of advantages no doubt but the disadavntages are questionable as ICOs with no future plans could venture into IEO only to make themselves some money without bothering about investors predicament afterwards.

I read through the source link and stumbled on How to participate in IEO where it was stated that KYC verification has to be passed. But my worry is that for a decentrealized ecosystem, why carrying out KYC Verification process?

IEO is not the replacement of ICOs and it is not 100% pure, IEO has some disadvantages too! Like, A lot of shit exchanges are coming with IEO, if people go for those exchange's IEO, they will be scammed again! So, IEO is like ICO in this term, because everyone should research about the project and also the exchange. Look at the latoken exchange IEO, they listed many project's IEO but most of them are nothing but shit. So, You have to be selective if you want to avoid scam in IEOs too! I prefer only big and popular exchange's IEO, and any other would be ignored!

on my opinion,
many many advantages than disadvantages both for investor or project creator.
its make crowdsale simple ,secure,no stupid chit chat.
also ready to fight on market after sale ended.

disadvantages maybe come sooner or later.
like some stupid exchange using same method to create a illusion IEO.
and they create a money game inside.

You named a lot of advantages and no disadvantages.
I agree on the advantages and like the idea of IEOs.
My concern with IEOs is that the projects  will be too dependent on the exchange and losing their autonomy.
My other fear is that shitty exchanges will also do IEOs and investors could be scammed as well.

That is where the next scams are going  to be. There are tons of exchanges that is sprouting since last year doing an ICO of their own. Exchange has all the advantages in the crypto world soon and so are the scamming scheme including the listing fee which is 20BTC?

If those guys had already foreseen this coming then they already had planned how they can scam millions in the next few months. ICO would still be best  path for the legit team.

you should be very naive to trust exchanges in first place even without them having the incentive to advertise scam coins. now that they have added a new incentive for themselves to add  and advertise scams you can be completely sure that these exchanges will surely scam you with their listings. it has certainly happened before multiple times and it will be repeated without a doubt.

Maybe  this is an upgrade to deceive people, using a known exchange as a new strategy to get money from gullible users. You can't blame the exchange if something goes wrong in the future because they are not liable to someone else's investments. There's always loophole in the system. So couple of years from now, how many of those projects will still be alive and living up to their objectives. I doubt, those projects will implement their overwhelming technology as presented on their whitepapers.

I think IEOs offer far more than listing. The most essential offer of IEOs is trust and confidence for investors. Investors need to invest in a project that has verified team members and won't shutdown after collecting funds. Investors also need to be assure that listing wont be a problem after crowdsale too

Crypto exchanges are also not to be trusted,since they are also here to make money.Only the exchange with huge reputation may do enough research before promotion of project but new or shitty exchange will promote any project if they pay them.

We should only choose the top exchanges to participate in IEO projects because it will help us avoid more risks. I usually do not care about small exchanges and new exchanges because it is actually more risky than reputable exchanges such as Binance, Huobi, Bittrex but if you have great considerations you can choose High quality IEO project

The reputation of the exchange strongly influences the interests of coin buyers. However, I think this is a temporary phenomenon, just like the hype around the ICO (in 2017).

The main winners with this new model are the exchanges. They charge a fee to carry out the process and they get new customers since investors need to register in their platform to participate in the IEO. In addition, we are starting to see how people need to buy the exchange's token to participate in the IEO, so exchanges have a way to make their token more valuable.

The main thing, and the only doubtful aspect for me is the fact that exchange coins are absolutely centralized and depend on the reputation of the exchange. In case of any problems with the exchange, the price of a coin will instantly collapse.

I think IEOs are great only on exchanges that can guarantee a great price increase. Because I have hard doubts on fact that every token sale on an exchange is going to have success. Only Binance can give such opportunities, but no other exchange.

Compraed to ico's, ieo's have zero disadvantages.

There is only advantages which are, guaranteed listing, secure middleman for kyc and transperancy about raised amount.

Let's see what happens next, while many exchanges are trying to grab a piece of the pie and exchange tokens looks like another bubble, be careful.

1. Trust
We cannot trust exchanges all the times. Only due to the reason of changing platform, we cannot assume crowdfunding will be a highly trusted one for better ROI. I mean people will pay extra for IEO to make their fake project success through crowdfunding. In this case ICO and IEO will not have big differences.

2. Security
KYC is a headache only for airdrop and bounty rewarding and definitely not for ICO contribution. I am not sure what category it will fall like I am not seeing it as neither advantage nor disadvantage.

Over all, IEO will not change things for a common contributors. We still need to be more careful for choosing and spending money for better ROI and to avoid scams.

There is nothing in this world that has an advantage that don't have a disadvantage, though the advantage of IEO is more than that of ICO because it is regulated by exchanges, as you have mentioned, trust will be one of the major advantage of IEO since this token sales are carried out on exchanges that have already made name for themselves and also gotten trust from investors. The disadvantage is that not all company will have funds to least their token for sale via IEO.

Certainly, we have already witnessed this in the last sale of Binance.  On the 17-minute sale, all of my applications were sent back and still nobody knows what that is.

Now, we should be really careful about IEO! Because after successful Binance IEOs, most of the exchanges are coming with an IEO. So, people understood the business! Many ICO projects are turning into IEO to make money or maybe to scam again! I have known most of the exchange according to the Coinmarketcap listed, but at this moment, Many exchanges I never have seen them, and they are coming with IEO with some catchy words! So, except big exchanges like Binance, Bittrex, Houbi, everyone again need to be aware of all of those IEO!

I have read so many feedbacks with IEO. But the thing is even in IEO, there are still scammers that are using it to fraud people. Just as you have mentioned, crowdfunding will be an alibi to scam others. If one of the advantage of it is the security, i think many investors will turn their back with ICO and go with the IEO.

Yeah, the trust and security really matter and the exchange reputation, I think the current hype started by binance will only happen on binance because in the past years they have proven themselves some IEO the effects is not the same with binance which is sold out in seconds or minutes. Also binance verification and researchers are good they are not listing any projects that want to partner with them they go thru a long process.

Of course it is very good that IEO excludes scammers and lists tokens after the sale. that's all. I don't see any more pluses at this subject. ICO is more useful for scripts in General.

I am agree, not every IEO profitable and only from trusted exchanger can deliver it. Binance having a good strategy on their IEO and its already proven profitable for investor. Many big exchanger will follow binance step and its good for new investor in cryptocurrency

There is no IOTA of doubt about that, ICO is far more useful and more beneficiary to the society than IEO but the main factor that might make ICO very irrelevant is the issue of scam that you mentioned.

This scam issue has really put a lot of stress on the current market by not encouraging investors to participate that much in ICO and skeptical in investing on the existing ones too but as IEO has been able to build their confidence back, that is all that matter and reasons why IEO will gain more popularity, the only thing that is still keeping ICO in the system is because of the regulation and cost of IEO.

The advantage I see in IEO is that it has a guarantee that it would be listed in an exchange, investor may feel secure not to be scam since crypto exchanged are the one who filter and scrutinize coins if it has a capacity to operate or might be a scam coin only.

It seems to me that these IEOs are created only to make a pump of the internal currency of the exchange. Of the recent projects, almost no one can buy coins. This is a new way of manipulation by the exchanges.

I approached an ICO team to conduct IEO to make the crowdsale faster but their response was that they wont participate in any pump and dump process. Though  the process looks like, thats due to the profit made for investors in the shortest of time but I cant say anything on the control of dump because the development i still young.

In the IEO, the main plus is that he was able to revive people's interest in investing in new projects.
The downside is that many exchanges conduct an IEO unfairly, they do not allow a large number of people to invest and artificially create a stir. Thereby undermining the credibility of IEO among ordinary people.

In my view, I think the advantages and disadvantages of IEOs are very similar to that of ICOs. The only differences i have seen so far are the fact that people can actually seen the amount of tokens sold in IEOs.

The intention is buying tokens from reliable sources and this  is the new trend in ICOs. New model of ICOs will let investors to put their money safely to development of their project and make more money in safer environment.

This is the safest way but not all of the people can join or participate in IEO and it's almost impossible. as a little shrimp, i was trying to join in IEO  two times and i still didn't get any coin from there. IEO just like a myth for me personally.

finally IEO has similarities with ICO, IEO only adds new shitcoin that has high hype at the beginning of the launch then the coin drops and is abandoned. The IEO is only beneficial for IEO organizers.

I see so many types of this projects, initially it was ICO then STO appeared and now the newest is IEO. I don't even know what to belive because something new appears every month and it claims to be the most trusted and secured type of investments.

One of the biggest advantages of IEOs amongst many is, that  the listing of the token is ensured. We know how much the projects often struggle while they are listed on a decent exchange.

This trend is still ongoing and includes new and many people who have benefited from IEO but many also feel disadvantaged when they get Fomo which makes them panic to buy it and finally they make a mistake

It's caused by panic buy but it's too risky to buy a coin when it was traded above from the ico price and i was feeling if that will be back again. i have ever get trapped with a coin that traded above the ico price and early investors were being a winner in this situation.

The current IEO losses have not yet been felt, but what is clear is that the IEO is still a favorite among many people and I myself am included, but the difficulty of getting these coins is a very natural thing to happen.

Now exchange has become a multi-million dollar business, because of the IEO set up they've provided something that these ICO's cannot, and if they will have a long run of success we will see the ICO minimize to 1 every month or even none at all, I think only good project will only launch an ICO

exactly this. the IEO creators like the ICO creators are the only ones that will ever make real profit. in this middle the exchanges will also make profit because they are getting paid no matter what happens.

the other big problem with IEOs that people are missing is the fact that before ICO tokens had to be listed on exchanges to be dumped. but now they are already listed as IEO on exchanges and can be dumped right away!!!

So far I haven't seen any disadvantages for IEO projects infact they are the safest around now and due to be launched on exchanges there is more trusts in it and many investors are not ready to lose the  advantage that's why most IEO sello out in seconds to minutes

Though listing is really crucial part in ICO's. IEO already fixed this with creating their own exchange just reinventing the concept of ICO. Looking at the greater picture. Since the coin is issued to the public with sale bonuses it is easier for big investors to manipulate the price of the token.

I do not trust IEOs, because I tried to take part in like 5 projects already and got nothing. I have nearly lost around 100-200 bucks because directly after the sale has ended people have dumped an exchange token. It is very unfair, especially on Binance and Huobi.

So it does not mean that ieo is bad just you do not have time)
I also participated since bt , and managed in 2 projects , which gave a lot of profit , but of course the long queue is a minus

Absolutely there is no much comma yet in the operation of IEO so far but I fear they might start beginning to see some set back because of the minimum purchase placed on those coins which Binance has started implementing.

But, I don’t know if other exchanges coming up with IEO will do that too, I guess Binance did that because they don’t have much competitions yet but by the time many of these exchanges carries out their successful IEO projects without placing minimum buy limit on investors, they will sure adjust because it makes no sense depriving other the privilege of investing with the little amount they have to invest.

Agreed with point 4, token listing will be the same on IEO exchange. For example like binance, then the token will listing on binance too. I think it will works like that, i mean obviously there is also a deal there between the exchange and the project/token owner and it's really a big advantages.