Initial Exchange Offerings: Addressing the ICO's Weak Points
By: FIAT Exchange
Whereas ICOs preserved a company's control, creating their own project's websites and gathering their own set of investors, the IEO is managed and run by a third party. Companies on both nonetheless seek the same investment routine so each come up with a concept and a white paper then requests to list their coin sale, whether by themselves or via an exchange. Both processes undertake due diligence to greatly ensure safety through KYC and AML restrictions, a step which should never be breached or skipped to make the trade's business is credible an the deal a good fit for both parties.
Sometimes when everyone is happy and puts full trust on the exchange, they then get to manage the whole process. The first thing they do is of course, marketing. As it's a given that the exchange will need to put effort on a relatively high profile marketing, it's actually relatively straightforward as opposed to individual companies in the past which was often a nightmare to attract investors.
The exchange then manages the actual sale of the tokens. For the finale, when the sale has finished, the coins (or what's left of them after the initial pre-sale, at least) are listed on the exchange. This is a very huge factor for investors because ICOs could take from several months to even years before they have a token that they actually could sell if they wanted to. With an IEO, tokens are immediately available and trading begins right away.
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