As explained above, IEO crypto fundraising is a modified version of ICO. The cryptocurrency exchange provides a platform for blockchain companies to issue their IEO tokens and raise funds from investors.
Since the cryptocurrency exchange performs due diligence to protect its customers and its reputation, IEO crypto fundraising is, therefore, more straightforward compared to ICO. The exchange also conducts βknow your customerβ screening, marketing, and selling tokens to investors on the behalf of token issuers.
Token issuers, however, have to pay a fee when they are conducting a token sale on a crypto exchange platform. Some exchanges may ask for a percentage of sales from the IEO crypto fundraising in addition to the listing fee. After the IEO token sale, the exchange will list the coins on their platform to facilitate seamless trading.
Investors that want to participate in the IEO crypto fundraising must just go to the exchange website and use the cryptocurrencies they added in their exchange wallets to purchase the IEO tokens.