What do ICO/IEO/IDO mean in the currency circle? Understand the meaning and difference of ICO/IEO/IDO in one article

ICO, IEO, and IDO are three financing models in the currency circle. ICO is funded by the project party issuing new coins, IEO is issued guaranteed by the exchange, and IDO is issued through a decentralized exchange. They differ in intermediation, time to market, amount raised, risk and regulation.

ICO/IEO/IDO: The currency circle financing model revealed

What is ICO?

ICO (Initial Coin Offering) is a way to raise funds by issuing a new cryptocurrency or token. Investors buy newly issued tokens with cryptocurrencies such as Bitcoin or Ethereum, and issuers use the funds to develop their projects.

What is an IEO?

IEO (Initial Exchange Offering) is similar to an ICO but is intermediary by a cryptocurrency exchange. The exchange is responsible for vetting the token issuer, the value of the token and the viability of the project. Investors purchase IEO tokens through exchanges.

What is IDO?

IDO (Initial DEX Offering) is a method of token issuance on a decentralized exchange (DEX). Unlike ICOs and IEOs, IDOs do not require intermediaries, allowing projects to connect directly with investors. This provides investors with a more direct way to participate and also reduces project costs.

The difference between ICO, IEO and IDO

Features	ICO	IEO	IDO
Intermediary	No	Cryptocurrency Exchange	None
listed Time	Longer	Shorter	Shortest
Amount of funds raised	Higher	Medium	Lower
Risk	Highest	Higher	Medium
Supervision	None	Yes (regulated by the exchange)	None
Exchange	Required to be listed on an external exchange	Trade directly on the issuing exchange	Trade on a decentralized exchange

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