What is the initial exchange offer and how does it differ from the ICO?

The main advantage of this approach for the organizers is a ready base of potential IEO participants from a huge number of exchange users. This reduces marketing costs.

In addition, not only the exchange is engaged in marketing, but also the organizers of IEO. Such an approach not only saves money, but also creates a synergy effect, which increases the efficiency of tokens promotion to the market.

The main source of income exchanges – trade commissions. More users and coins in the listing – more transactions and, accordingly, higher income from commissions. Holding IEO on its own platform gives the exchange the opportunity to attract new users and offer, at times, exclusive coins that are not available at other sites. All this increases trade momentum and, consequently, income.

In the case of ICO, listing on the stock exchange is the next logical step after the completion of the tokensale. The listing procedure is often costly and time consuming. At the same time there are no guarantees that the coin will quickly be on the popular exchange and will become liquid.

IEO, in fact, optimizes the process of access token to the trading platform. The asset almost immediately after the end of the campaign becomes more or less liquid, because it turns out in the listing, as a rule, a large stock exchange.

This method of raising funds is mutually beneficial for both stock exchanges and issuers of tokens. Despite the seemingly significant costs for the organizers, IEO increases the chances of success of projects in the long term.