Guys, this is what i think about Initial Exchange Offering (IEO) and Initial Coin Offering (ICO); the biggest problem with ICOs is that they’re not monitored by any third parties. Basically, anyone can launch an ICO, as long as you have a white paper to convince investors to put funds into your company.
On the other hand, an IEO is a very, if not entirely, different model. While both ICOs and IEOs share the rationale of an initial public offering (IPO), in an IEO, the exchange becomes an administrator.
To conduct an IEO, the project team must meet and comply with the exchange’s requirements in order to launch the token sale. Contributors are, therefore, protected by the exchange.
Although some may argue that the exchange may go along with the project team to scam customers, this will put the exchange’s reputation at risk. Exchanges that look for a sustainable business model would not consider taking such an unethical move.
However, i have come to a conclusion that IEOs will definitely overtake ICOs very soon. What do you think?