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IEOs are the new Fad. This is not a new concept but so far the current hot trend in the market which most of the exchanges are trying to emulate.
IEOs are almost like ICOs, apart from one crucial aspect. In ICOs, the token purchased will be sent to user wallet by the respective projects once the sales are over. There is no specific time frame. It can happen in a day or maybe months. But in the IEO model, the tokens will be put up for sales by the exchange and all the tokens are distributed to your exchange wallet once the sales are finished. This means investors buy the token directly on an exchange.
The main benefits of IEOs are multiple. In an ICO model, an Exchange listing is never guaranteed. So far, almost 80–90% of ICO projects which was launched in 2018 have not managed to list their token on an exchange. This leads to a massive loss in terms of Investor confidence as well as on ROI as well.
One another significant advantage is that IEOs provide the project with a more trustworthy reputation. No exchange will dare to list a project with a shady background as it will erode the standing of exchange as well ( Bittrex RAID fiasco). This helps to protect an average customer from getting robbed by shady ICO’s like those that happened in the past.
In the past few months, we had seen a couple of IEO’s from leading exchanges with most of the IEO faring in green even after the initial pump. There are some failure stores as well like Veriblock which is performing below the IEO price.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.