Advantages and disadvantages of IEOs

[Swingle]

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/

[alisafidel58]

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.

[carter34]

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.

[demenBTC]

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

[stompix]

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:

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.

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

2. Security

Same as above.

3. Easier for the projects
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.

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.

[IVEXO]

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/

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

[dobolspeed3]

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/

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.

[OptimusPrime_3]

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

[Ucy]

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

[Swingle]

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.

[Sandus_Cryptolover]

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?

[abstractednerve]

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!

[ashmodeus]

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.

[coinbirds]

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.

[enhu]

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.

[Red-Apple]

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.

[tippytoes]

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:

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.

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

2. Security

Same as above.

3. Easier for the projects
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.

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.

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.

[novusordo]

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 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

[Thanasis]

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!

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.

[canman]

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!

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