{"id":28425,"date":"2023-03-30T16:16:59","date_gmt":"2023-03-30T16:16:59","guid":{"rendered":"https:\/\/p2pb2b.com\/blog\/?p=28425"},"modified":"2023-08-23T12:40:21","modified_gmt":"2023-08-23T12:40:21","slug":"a-short-guide-on-how-ido-and-ieo-work","status":"publish","type":"post","link":"https:\/\/p2pb2b.com\/blog\/a-short-guide-on-how-ido-and-ieo-work\/","title":{"rendered":"A short guide on how IDO and IEO work"},"content":{"rendered":"

Do you want to learn more about smart ways of the traditional ICO held on the diverse cryptocurrency exchanges and how they work? In this short guide, you will dive into the exciting world of IDO and IEO: find out the main difference between them and why they are becoming increasingly popular among exchange users.<\/span><\/p>\n

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If you\u2019re looking for a deeper study on the topic, check out our Launchpad extensive guide<\/span>
Read the guide<\/a><\/div><\/div><\/div>\n

What is IEO?<\/span><\/h2>\n

IEO, or an initial exchange offering, is a way of raising funds used by crypto startups by selling tokens or coins through a cryptocurrency exchange platform. In other words, crypto exchanges help oversee the token sale by completing the project vetting process, which means checking crypto projects for a scam in different aspects. Therefore, participating in the IEO\/IDO on a reliable crypto exchange is much safer than participating in the ICO.\u00a0<\/span><\/p>\n

Primarily, the IEO was held in January 2019, when Binance, one of the most popular crypto exchanges, launched the BitTorrent Token (BTT). IEO took 15 minutes and raised more than $7.1 million.<\/span><\/p>\n

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Source: <\/span>BitTorrent<\/span><\/a><\/p>\n

The IEO has become popular because of participation mechanics. Instead of processing on-chain transactions across multiple blockchains and wallets, the IEO allows users to assess the project’s reliability and participate in funds exchange. On the other hand, project developers can present their projects to the crypto exchange’s user base without spending much on promotion and marketing strategy development. Therefore, the IEO is a win-win event for both investors and owners of crypto projects.<\/span><\/p>\n

How does IEO work?<\/span><\/h2>\n

Crypto startups raise funds by working directly with a cryptocurrency exchange platform to launch a token sale and arouse interest among investors. The key particularity of the IEO process is the huge amount of audit jobs before launching sales to provide participants of the IEO with high safety and reliability. Thus, investors can get confident that this crypto project will provide them with a future profit and won\u2019t become a scam.<\/span><\/p>\n

In the crypto world, you can meet the launchpad concept. This is a platform that helps crypto startups do fundraising for further development and launch. The IEO rules and processes vary on different platforms. However, the IEO process usually includes the following stages:<\/span><\/p>\n