How has your crypto journey been so far? Are there terms that you are trying to understand? Here, we will be explaining what Initial Exchange Offering (IEO) is to you.
What is an IEO?
Initial Exchange Offering which is known as the IEO is an initial token sale arrangement, organized by a cryptocurrency exchange platform on behalf of the company that owns the token, it is a token sale before the token begins trading officially on the exchange.
An IEO is done to create awareness for an upcoming project and attract the interest of investors to raise capital for the project cause.
It is a fundraising event administered on a cryptocurrency exchange platform.
The exchange is expected to assess the project for its potentials and use case before going ahead to host the IEO. The exchange acts as an intermediary between the investor and the parties hoping to raise funds, the founders mint new tokens and send them to the exchange for funding. The exchange facilitates this funding, including terms of trade like capping individual contributions and having a fixed price per token.
Most projects now find it advantageous to raise funds through IEOs for reasons such as:
Naijacrypto has created a platform on its exchange for companies and start-ups to raise funds for any specific project through Initial Exchange Offering and most importantly it is giving its users access to be partakers in projects of different purposes for the long-run.
Are you a company willing to raise funds for a project or a start-up trying to get investors for your business through IEOs? Here’s how to get started.
The Naijacrypto user who will like to take part in an initial exchange offering (IEO) on Naijacrypto will need to:
We encourage everyone to do their own due diligence on the project. Familiarize yourself with the IEO and read more. Take the information collected here and use it as the starting point for investigating further before making any purchase.