IEO Explorer is our view on the constantly growing IEO world. We’ve created and constantly update 3 useful lists: Active IEOs, Upcoming IEOs and Ended IEOs for everyone who is interested in IEOs and wants to stay current on the topic. The lists look like a kanban board (Inbox, In Progress, Done).
An Initial Exchange Offering (IEO) relies on having an exchange (or set of exchanges) function as the counter-party. Developers mint the project’s tokens and send them to the exchange, which will then sell the tokens to individual contributors for Ether. Subject to the agreement between the developers and the exchange, conditions traditionally found in an ICO can be emplaced in an IEO. These conditions include capping the contribution per individual and having a fixed price per token.
From the perspective of a contributor, instead of sending Ether to a Smart Contract governing the ICO, each IEO participant has to create an account with the exchange and send ETH to this account. When the IEO commences, the participant can purchase the token directly from the exchange.
Running an exchange has been a profitable endeavour from trading fees alone, but incumbents are faced with increasing competition for users and their trade flows. The following are some of the benefits accrued to an exchange which facilitates IEOs:
-IEO or listing fees. This can vary quite significantly between exchanges.
I-nflux of new users and their deposits. Some of these new users may eventually become loyal users of the exchange. I expect several exchanges to attempt carving out a niche by running IEOs.
– Joint marketing with the IEO team.
As IEOs are currently, relatively rare in the crypto community, it is not that hard to find one that you like. After you’ve found your IEO of choice, you need to find which exchanges are hosting the crowdsale.
The next step is to register an account on the cryptocurrency exchange and complete the KYC and AML verification process.
After you are done with that, check out the cryptocurrencies you can use to contribute to the IEO, and fund your account with a coin that is accepted in the crowdsale. The last step is to wait until the IEO starts to buy your tokens.