Initial Exchange Offerings: The Next Evolution in Cryptocurrencies

As the initial coin offering (ICO) market waned in 2018, a new format for crowdfunding arose: initial exchange offerings (IEOs). Although the downturn of the ICO market undoubtedly contributed to the development of IEOs, this is also part of the natural evolution of raising capital through cryptocurrencies. Scams, regulatory issues, manipulation, and random speculation have all been associated with ICOs. Conversely, IEOs put the good name and reputation of a cryptocurrency exchange behind the token offering, providing a level of fairness, integrity, and safety not always offered through the ICO market. This article demonstrates that the additional level of due diligence conducted in an IEO increases token fundraising success.