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Initial Exchange Offering (IEO)
An Initial Exchange Offering (IEO) is a fundraising method for a new crypto project through a cryptocurrency exchange. It involves the project team issuing tokens or coins, which are sold to investors through the exchange, acting as an intermediary. The tokens or coins can be used within the project’s ecosystem.
IEOs have advantages compared to other cryptocurrency fundraising methods like ICOs, such as the exchange conducting due diligence on the project before listing the tokens or coins, which gives investors more confidence in the project’s legitimacy.