The creation of a new token system become sought-after the peak of ICO popularity - 2017 was remembered not only by the surging popularity of tokens, but also by the numerous facts of cheating the contributors. The main difference from the ICO is the high-quality filtering of projects; IEO-projects get on the stock exchange only by the decision of analysts, therefore, only promising projects are located there.
As you know, tokens are far from every ICO go to the stock exchange after a tokensale, or they get there after 2 - 3 months. If we consider IEO, the exchange is the main partner of the IEO project. Thus, users buy tokens of interest on the exchange without the risk of losing money.
In order to acquire tokens, we do not have to send investments to a smart contract. First, you should find interested token and register (most often you need verify account as well) on the exchange. Then comes the stage of waiting for a tokensale start and you can buy coins from your personal account.
Agreement of the exchange and IEO-project representative contains the following conditions: number of tokens per investor, price of the asset, expected and minimum investment mass needed to start the project, percentage of sales for the trading floor.
A logical question: why do we need IEO, when we can choose an ICO
The answer is obvious. In recent years, the ICO-sphere has developed quite well, but by the beginning of 2019 it had practically exhausted itself. It became obvious that a fresh replacement of the ICO would come soon.
For a long time working with ICO, many problems have been identified
- a large number of scam projects
- legal uncertainty
- tightening the rules for advertising projects on information resources.
In any case, this is progress in the world of investment. In recent months, we have been actively testing some IEO projects and will present you some noteworthy projects soon.
What are the advantages for investors?
When tokens are placed for sale to investors, the exchange determines the main characteristics:
- investment attractiveness
- project relevance
- viability of the final fundraising goal
- financial condition of the project
Before choosing tokens an investor may familiarize himself with this important information and have no doubt about its authenticity, as the exchanges are very worried about their reputation and are unlikely to post “one-day projects”. In ICO, there is such a thing as a private coins offer - this is when a regular user cannot buy a few tokens for a small amount, since only large sales are available for the "special people". IEO makes the buying process more democratic, and ordinary users can afford the most interesting tokens.
Let's talk about the shortcomings
IEO members must be verified. Most exchanges are centralized, therefore, users have to trust their data to a third party, which carries many risks, such as hacking.
Some analysts and experts believe that IEO is just a temporary replacement for ICO.
For now it is difficult to give an objective assessment of IEO. It should take a couple of years, then everyone with confidence could decide for themselves whether to invest in a new type of tokens or not. So far, these are all known major flaws.
How to start investing in IEO?
First you need to check that the project is really IEO, not ICO. Then check on which exchanges you can find the token to be sold. We select the exchange, register and verify the account, then we have access to a personal account, where we can replenish the account and, after waiting for the tokensale, acquire tokens.
The most popular exchanges:
For questions about IEO, you can ask in the comments below or ask a question directly in the telegram @greencly_support. All consultations are free and we will be happy to answer your questions if you do not find comprehensive information in the article.
Good luck and high profit to all!