Understanding Initial Exchange Offerings (IEOs)

7 min readApr 5, 2023

A Beginner’s Guide

Initial Exchange Offering, or IEO, is a form of fundraising whereby cryptocurrency startups collaborate with an exchange to acquire funds by selling their tokens to the exchange’s customers directly. IEOs feature a third party, usually an exchange, which serves as a facilitator and adds a further degree of due diligence and security, unlike ICOs, where tokens are sold directly to investors.

Initial Exchange Offerings (IEOs) have grown in popularity as a way for the cryptocurrency sector to raise funds.

In this article, we’d be exploring all we need to know about IEOS.

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What is an IEO?

As stated, an initial exchange offering, or IEO, is a type of fundraising strategy that blockchain-based firms utilize to raise money.
The cryptocurrency exchange serves as a facilitator in the IEO promoting the project to the exchange’s user base and listing the token on the exchange’s platform. Investors can then buy the startup’s tokens using the exchange’s token or other cryptocurrencies.

The exchange often takes a cut of the cash earned as payment for its services, as well. The startup receives the cash and utilizes it to further develop its platform or product.

IEOs provide a more reliable and secure mechanism for investors to participate in token sales and for blockchain-based enterprises to generate funds. Before making an investment in an IEO, you should perform your own research and understand the dangers involved, just as with any other type of investment.

Crowdfunding before IEOs

Blockchain technology has been utilized by several industries, bringing about quick improvements and revolutions.

An initial coin offering (ICO) using blockchain technology was the first evolution of crowdfunding, where a company solicits donations by offering to sell cryptocurrencies or tokens.

Beginning in 2017, ICOs skyrocketed, raising about $4.9 billion in revenue. But the ICOs, are risky, opaque, and unregulated. Several investors who fell for the 2017 ICO hype lost money and bought into scam projects. Although a number of popular projects received funding using blockchain-enabled fundraising, more blockchain observers now believe that the approach is useful but should be modified. This thus led to the succeeding wave of blockchain-based crowdfunding.

Crowdfunding with IEOS

Initial Exchange Offerings (IEOs), started as a form of crowdfunding for cryptocurrency projects. It first surfaced in 2019 through the Binance Launchpad, which was launched in January 2019, putting the concept out first.

The BitTorrent token was the focus of the first initial exchange offering on Binance Launchpad in March 2019. The IEO raised about $7.2 million in only 14 minutes, making it a success. thereafter, exchanges like Huobi, OKEx, and Bittrex followed suit.

IEOs quickly gained popularity among crypto project owners because they offered several benefits over traditional initial coin offers (ICOs). For example, IEOs provided companies with access to a big pool of potential investors as well as additional marketing and listing assistance from the exchange.

IEOs were also thought to be safer for investors since the exchange would check out the company and supervise the token distribution procedure. Compared to ICOs, which were frequently linked to fraud and scams, this was viewed as a big improvement.

IEOs were originally well-liked, but they only had brief success. At the end of 2019, IEOs had much fewer subscribers as some exchanges had stopped offering the service. And the factors that contributed to this were worries about the possible regulatory effects of IEOs and the general drop in the popularity of cryptocurrencies at that time.

Despite this, IEOs are still a good way for crypto projects to raise funds, and several exchanges still provide IEO services today.

How are IEOs different from ICOs?

Most times, people confuse initial exchange offers (IEOs) with initial coin offerings (ICOs).

Although both IEOs and ICOs are types of crowdfunding techniques that cryptocurrency firms utilize to attract investors.

In an ICO, the cryptocurrency project creates and distributes its tokens directly to investors. But for an IEO, A cryptocurrency exchange, serves as a middleman between the startup and the investors.

The exchange, which serves as a middleman in an IEO, is in charge of carrying out due diligence on the cryptocurrency company before approving it to carry out the financing. For investors, this may result in a more secure environment for investing.

During an ICO, contributors submit funds directly to the project, which is in charge of allocating tokens. In an IEO, the exchange is in charge of the token distribution, giving investors an extra measure of security.

Also following the funding, the startup’s tokens are instantly listed on the exchange because an IEO is carried out on a trading platform. As a result, both the company and investors may gain from an increase in liquidity and trading volume.

Therefore, as an exchange serves as a middleman and performs due diligence on the cryptocurrency project, IEOs may be seen as a safer and more streamlined version of ICOs.

SuperEx IEO launchpad (Super Start)

The Super-start launchpad is an exclusive IEO platform that offers users greater chances for early investment and a faster channel for high-quality projects by also providing a lot of publicity and attention to SuperEx users.

The launchpad was introduced by superEx to provide users with additional chances to invest early and a quicker route for high-quality projects to be listed on the exchange.

SuperEx presents detailed and specific information about projects, thereby making it easy for users to trust the project. They also promote projects on the exchange and increase the project’s exposure by giving them access to SuperEx’s user base.

SuperEx usually conducts proper diligence before collaborating on any project for an IEO, this gives the project greater validity because it is backed up and allows SuperEx to be in charge of all risk management.

The projects participating in IEO will be able to access more investors due to the large superEx user base.

The outcome may be that the project gives some of the tokens to the users of the exchange.

On the blockchain, new projects come up on a weekly basis. While it can be challenging for startups to market and publicize their projects, they can reach a wider audience of investors by taking advantage of the SuperEx IEO.

Some of the benefits projects get from Superstart Launchpad are

-a quicker listing procedure

- possibilities for displaying in-depth information

- greater project visibility

-high user investment rates.

While the users get

- Opportunities for early investments

- An easier-to-understand project presentation

and an improved project screening.

The first and second rounds of the Super Start IEO were incredibly successful, and the latest round also garnered unprecedented attention. The star of this round was WISEDY, which received a significant amount of traffic and raised a total of 1813780 USDT, surpassing the anticipated amount by 1813% and setting a new record in SuperEx history.

The IEO’s tremendous success resulted in many participants earning substantial profits. The SuperEx SuperStart launchpad has continuously improved, as evidenced by the records. SuperEx recently announced its fourth round of IEO, which is set to take place in a few days. It is advisable to prepare ahead, as it could potentially surpass the previous rounds’ success.

Participating in the superEx IEO

To participate in the Superstart IEO
You will first have to be a registered user of superEx. Aside from the benefits you get from IEOs, there are still so many other benefits for joining SuperEx, one of which is the 1 USD campaign, where you can get mind-blowing products for just 1 USD. Read more about 1USD Here!
Sign up for superEx Here

On the superEx Apps Home click on Superstart

After that, click on the running IEO

Then click on subscribe

Although it depends on your VIP level on superEx, your level determines how many copies you can buy at a time. Remember, the more copies you get, the more tokens will be allocated to you, and the more profits you make.

In conclusion.

Initial Exchange Offerings (IEOs) are a popular kind of fund-raising in the cryptocurrency space that gives projects a safe and effective means to generate money and allows investors to engage in exciting projects.

Projects and investors may have access to a variety of features and services, including a thorough due diligence procedure, cutting-edge security measures, and access to a sizable pool of potential investors, by using a respected launchpad like Superstart. It is evident from the success of prior IEOs on the SuperEx platform and the upcoming fourth round that SuperEx is dedicated to providing top-notch services and fostering the development of the cryptocurrency space.

SuperEx