ICO Vs IEO: Everything you should know about them!

Fundraising for the projects has been the most essential thing done by startups and entrepreneurs. In particular, when it comes to cryptocurrency projects, it is important to go with a reliable method.

In recent years, we can experience a boon and fall of Initial Coin Offerings, one of the popular fundraising strategy. For the years 2017 and 2018, they experienced a huge uprise by raising billion dollars in seconds.

However, they weren’t successful in 2019. They produced a slow start and raised millions for the projects. As a few of them turned out to be a scam, most of the investors lost their interest in them.

Meanwhile, yet another strategy called Initial Exchange Offering came into existence. This has become the most popular and hot talk of the town. Similar to ICOs, IEO’s are meant for the startups who are looking to raise funds for their projects.

ICO Vs IEO:

To understand the fundraising methods of ICO vs IEO

Initial Coin Offerings:

ICO is one of the ways to raise funds for the Blockchain Projects. Investors offer the funds to the respective project developers who are involved in creating the token/ coin. These developed assets are used on Blockchain where the project gets developed.

Most of the investors started to move with ICOs since they were of minimum investment as well as restrictions involved. This has attracted most of the investors, startups, etc who aren’t aware of making money easily.

ICOs are legitimate and worthy if you find a trustable developer for the crypto projects. But the downside is there are huge possibilities of getting fraud. They are easy to create and collect money.

Hence, people have started to move towards

Initial Exchange Offerings:

As there are a huge number of ICOs being termed as scams, people started to move towards IEO’s. The major difference is the involvement of third-party in Initial Exchange Offerings.

The total crowdsale takes place on Cryptocurrency Exchange Platforms. Hence the funds are directly transferred to the respective wallets with an exchange. To participate in IEO, both parties have to create an account on the exchange initially.

Investors who are looking to buy tokens can make use of the trading platforms in this case. The major advantage of Initial Exchange Offerings is, they are completely reliable. Since the Crypto Exchange allows both investors and startups to register and start an IEO with certain restrictions.

The exchange professionals completely review the IEO which can, in turn, reduce the scams and enhance the degree of security and trust among the investors.

The downside of IEO’s is, there are a lot of high investments involved when compared to Initial Coin Offerings.

Conclusion:

Both ICOs and IEO’s are believed to have a good future for the year 2020. Each of these strategies has its own pros and cons. When started to investing in these, people can check for budget, security, and the scope and get started with them.

Icoclone, the superfine IEO Development Service Provider is readily available to assist you in this case! We integrate IEO Module for your existing Crypto Exchange Platform which can provide you with an additional source of income!

Get in touch with us, if you require one for your business!