Many of us expected STOs to became the crypto trend of 2018, but it didn’t happen. This was partly due to the very stringent regulations on securities and partly because participating in an STO requires more technical skills and financial acumen than the average crypto investor has. Instead, a completely new and very promising model has emerged — initial exchange offerings (IEOs).
In an IEO, tokens are not offered directly by a blockchain startup but rather by an exchange that acts as an intermediary. Unlike ICOs, which allow almost anyone to buy tokens, IEOs are only available to registered clients of the exchange. This narrows the potential range of investors, of course, but it also simplifies the founders’ task, as there is no longer a need to conduct a separate KYC or to negotiate with exchanges to list the token. In fact, any token accepted for an IEO can be automatically listed and traded immediately.