IEO is a newer concept compared to ICO and at present, it offers several benefits both to the investors and the crypto exchanges.
- IEO is an exchange platform where investors transfer the power of the fundraising to the exchanges. So, by vesting the power the investors especially small-timers are more relaxed. They do not have to do on their own, unlike Apart from that, IEO will also help startups to improve their brand names by proper marketing of their projects.
- It is a common platform both for token issuers, exchanges, and As there is less risk involved more and more investors are coming into the platform.
- IEO eliminates the risk of scamming in the fundraising process. As the fundraising process is done through a proper crypto exchange there are fewer chances of loss of funds to the scammers.
- Crypto exchanges do proper research work before they host an IEO project in their platform. So, only after due diligence, they offer their services. So, a project being hosted in a crypto exchange is automatically validated and there is no doubt about its credibility.
- Issued tokens can be bought from the exchange only after completing proper KYC guidelines. This ensures a sense of trust and security among investors.
- The hosting exchanges also benefit from procuring fees like commission, issuance fees and also get a part of the investment.