Since crypto markets are relatively new compared to standard stock markets, let’s first check what is an IPO. Term IPO stands for “Initial Public Offering” and is an event, when one company decides to put shares on stock market. This means that for the first time in history, stocks of a given company are available to public. All of this three terms ICO, IDO and IEO are similar, just that they are in the world of cryptocurrencies.
ICO stands for “Initial Coin Offering” and represents a new coin coming to the market.
IDO stands for “Initial Decentralised Offering” and represents any type of tokens, that are hosted on decentralized exchange.
IEO stands for “Initial Exchange Offering” and represents the scenario, where a cryptocurrency exchange oversees the token sale. It is expected, that IEO will replace the ICO, because in the recent history, companies decided to raise funds through the IEO rather than ICO. Many investors also think that they are more attractive because there is a greater level of diligence.
Regardless of which one of these four terms we are talking about, the intentions are always the same – to raise funds for future projects. It is also in the best interest of companies, that their token or stock reaches the highest price possible, because that way also their market capitalization increases and it plays a big role in the mind of investors, how they see a certain coin or company.
The distinction between ICOs and IEOs is that, unlike ICO investment models, IEOs are launched on the cryptocurrency exchange's platform. The IEO is hosted on the websites of crypto exchanges for investors to engage in. ICO, because it happens on the website of issuing company, is often more prone to frauds and scams. It is also not considered as a good option, if one is interested into long-term investing.
The process of creating IEO is following:
1. To begin, create a Whitepaper that highlights the purpose of your offering, token economics, and the specific benefit that your idea will provide to investors and the general public.
2. The next step is to build your cryptocoin, which will serve as the foundation for the entire Offering portion of the Initial Exchange Offering.
3. After you've covered each of the elements, you'll need to differentiate before starting the IEO – the portion that separates an ICO from an IEO blockchain.
4. You'll need to conduct due diligence on the bitcoin exchange platform before pitching them your IEO blockchain strategy, which they'll then review and post on their website.
After this point, everything will be taken care of by the exchange websites.