An Initial Exchange Offering (IEO) is simply a token sale conducted on a cryptocurrency exchange platform, specifically available for the crypto community. IEOs enable investors to get new cryptocurrencies or tokens to raise funds for new and promising crypto projects.

Contrary to Initial Coin Offerings (ICOs), IEOs are regulated by a cryptocurrency exchange on the behalf of the startup crypto project seeking to raise funds with its newly issued tokens or cryptos.

Fundamentally, Initial Exchange Offering is another way to crowdfund different cryptocurrency startups through a crypto exchange functioning as a mediator. With assistance from the exchange platforms, crypto projects manage to receive more credibility, interest, and exposure. After a successful IEO, a listing fee is paid by the token issuers along with an agreed amount of cryptos or tokens for the use of IEO platform service offerings. Later, the tokens or cryptos are listed on the cryptocurrency exchange where investors can get instant access to liquidity pools.

Note: This article is just for basic knowledge and information on IEO. NitroEx does not extend Initial Exchange Offering.