An auction-like type of initial coin offerings (ICOs) where the fundraising is managed by an exchange rather than a crypto project’s development scheme.
An Initial Exchange Offering (IEO) is a type of an Initial Coin Offering (ICO) where an exchange platform is in charge of the fundraising event. Like ICOs, IEOs are characterized by different investors who buy tokens directly from the brains behind new cryptocurrencies. However, unlike ICOs, IEOs are more secure in that tokens are offered and obtained directly by usually trustworthy exchange platforms, so investors face a lower risk of losing their funds to fraudsters.
Smart investors generally prefer IEOs to ICOs. The latter may offer juicier returns on investments since the projects are rarely thoroughly supervised, but the former is more secure and trustworthy.