Crypto Funding Trend: IEOs vs. ICOs

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An Initial Exchange Offering, or IEO differs from an Initial Coin Offering, or ICO in one very important way: only members of a specific digital currency exchange may participate in the coin offering. In this way, an IEO may be regarded as a sort of private form of an ICO, and its popularity is growing.

IEOs are not just overtaking ICOs in popularity; they’re fast-approaching the IPO market in adoption metrics. This is especially true for multiple-IEO and Security Token Exchange Offering, or STEO trends.

The STEO is a combination of an IEO and a STO. Think of a funding event that combines the regulatory-compliance benefits of an STO with the security and convenience of an IEO, where cryptocurrency exchanges manage the KYC and AML processes.

Some authors and crypto analysts will even go so far as to suggest that Q2 2019 marked the replacement of the ICO with the IEO model, particularly among startup projects. As of October 15, 2019, there are over 65 IEOs that have been launched in the past six months, of which 40 have already hit their soft caps in fundraising, and in some places, their hard caps. Another 15 IEOs are scheduled to launch over the next quarter. In sum, there have been 245 IEO projects launched over the past three years, with a total fundraising amount of $3.4B, accounting for 79% of all funds raised through ICO, IEO, and STO crowdsourcing. In some cases, companies have launched second IEOs to generate additional funds for their projects.

The first STEO was announced in September 2019. Founded by Dreamr Inc., this project was launched on the IDCM digital exchange.

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