Definition
An initial exchange offering (IEO) uses a centralized exchange platform to organize a project’s token sale. The exchange can manage applications, allocation and payment processing. Its role differs from a project conducting a sale directly, but the exact responsibilities depend on the arrangement.
How It Works
Participants follow the platform’s eligibility and account requirements. Allocation may depend on subscriptions, lotteries, caps or another published method. Token delivery, vesting and subsequent trading can occur at different times. The sale price and the market price after trading begins are separate figures.
Key Considerations
An exchange’s involvement is not a guarantee of project quality, financial returns or future liquidity. Review responsibilities, restrictions and the actual rights attached to the token. Availability may differ by jurisdiction, and a platform’s review process does not replace a participant’s assessment. Avoid assuming that every IEO guarantees a listing on every exchange or that tokens are immediately withdrawable when an allocation is announced.