Crypto Dictionary
IEO
Definition
Initial Exchange Offering. A token sale conducted on the platform of a cryptocurrency exchange.
Deep Dive
Initial Exchange Offering (IEO) is a token sale model where a cryptocurrency project partners with a centralized cryptocurrency exchange to launch its new token. In this model, the exchange acts as an intermediary, facilitating the sale directly from its platform to its verified user base. The exchange typically conducts due diligence on the project, handles the technical aspects of the token distribution, and often provides immediate liquidity for the new token after the sale.
Examples & Use Cases
- 1Binance Launchpad has hosted numerous successful IEOs, including BitTorrent (BTT) and Fetch.ai (FET), leveraging its large user base for rapid token distribution.
- 2A new gaming blockchain project decided to launch an IEO on a major exchange to gain credibility and ensure a wider reach for its token sale.
Related Terms
ICOLaunchpadToken Sale