Initial Exchange Offering (IEO)
A token sale run through a centralized exchange, which vets the project and sells tokens directly to its users.
An IEO is an ICO with an exchange as gatekeeper. Instead of buying tokens from the project directly, you buy them through an exchange that has vetted the team and lists the token afterward. Binance Launchpad popularized the model in 2019.
The exchange's due diligence is the selling point. Its reputation is on the line, and buyers get a built-in market once the sale ends.
Vetting isn't a guarantee. Exchanges charge listing fees and have their own incentives, and plenty of IEO tokens sank well below their sale price.
Related terms
A crowdfunding method where a project sells a new token to the public to raise capital.
Initial DEX Offering (IDO)A token launch held on a decentralized exchange, where buyers trade against a liquidity pool instead of a central seller.
Centralized Exchange (CEX)A company that runs an order book, holds your funds, and matches buyers with sellers for a fee.
TokenA digital asset issued on top of an existing blockchain, usually through a smart contract rather than its own network.