Initial Exchange Offering (IEO) involves the use of a cryptocurrency exchange to raise funds for a new project. It is common to trade assets on these platforms, but that typically only happens after the developers raise money to kickstart their projects.
Because an IEO is facilitated by an exchange, the startups opting for this route must be serious about their plan of action. In most cases, the IEO proposal is rigorously reviewed by the participating exchange. In some ways, the exchanges put their reputation on the line for every IEO they decide to offer. With an IEO, potential investors can buy these assets before they become available on the market. With the help of the exchange facilitating the token sale, registered users who provided their KYC information will be able to buy tokens before they start trading on the open market.