What are IEOs?

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A beginner’s guide to IEOs and how they differ from other token launches.

An Initial Exchange Offering (IEO) is a crypto fundraising method where a new token is sold directly through a centralized exchange rather than by the project itself.

Unlike traditional ICOs (Initial Coin Offerings), where anyone can launch a token on their own website, IEOs leverage the credibility and existing user base of prominent exchanges such as Binance and OKX. Centralized exchange involvement dramatically boosts investor confidence by reducing the chances of outright fraud and scams—it is a rubber stamp of legitimacy from some of the industry’s biggest players. 

IEOs in 2025 

IEOs ballooned in 2019, largely as a second-order response to the widespread fraud and failures associated with the ICO mania of 2017/ 2018. A notable example of an early successful IEO is BitTorrent (BTT), launched on Binance Launchpad, raising approximately $7.2 million in under 15 minutes. This success attracted more investors, leading subsequent IEOs like Polygon (MATIC) to boom, turning an initial raise of $5 million into a multi-billion dollar valuation.

And IEOs are still going strong in 2025 via the Binance Launchpad and OKX Jumpstart. Unfortunately, not available to US investors due to the SEC ruling IEOs as securities, but this could well change under the Trump administration.  

How Do IEOs Work?

Understand the full process from project listing to investor participation.

IEOs involve a straightforward yet rigorous process. First, a crypto project applies to partner with an exchange, submitting documentation such as whitepapers, audits of their smart contracts, team credentials, and evidence of regulatory compliance. Exchanges then conduct vetting, filtering out weak or suspicious projects and allowing only those that pass strict due diligence—and this is what made them a massive success.

The hit rate of investing in a winning IEO is naturally higher than an ICO because the diligence undertaken by centralized exchanges weeds out the worst applicants. 

Once approved, the exchange publicly announces the token sale details—token price, total supply, allocation limits, and sale schedule. Investors interested in participating must create and verify accounts with the exchange, complete necessary KYC (Know Your Customer) requirements, and deposit funds. Typically, the required funds are major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), or the exchange’s native token, such as Binance Coin (BNB).

When the IEO goes live, investors must act quickly as tokens often sell out within minutes, sometimes even seconds. Once the sale concludes, the purchased tokens immediately appear in investors’ exchange wallets and become tradable almost instantly.

The state of being liquid after investment is a huge advantage over traditional ICOs, where token holders often had to wait months for exchange listings, taking on huge time duration risk.

IEOs vs ICOs: Key Differences

Exchange involvement, KYC, fees, and control—a side-by-side breakdown.

Exchange Membership:

• ICOs: Normally open to anyone globally with no verification required.
  
• IEOs: Limited to users with verified exchange accounts.
  

Due Diligence:

• ICOs: Limited or no external vetting.
  
• IEOs: Thorough vetting and verification by the hosting exchange.
  

Fees and Costs:

• ICOs: Lower upfront costs meaning the project retains more capital.
  
• IEOs: Higher fees paid to exchanges for hosting, marketing, and providing liquidity.
  

IEOs vs IDOs: What Sets Them Apart?

Centralized vetting vs. community-driven listings—what investors need to know.

Listing Approval Process:

• IEOs: Centralized, rigorous exchange vetting.
  
• IDOs: Decentralized and community-driven, with minimal barriers.
  

Exchange Membership & KYC:

• IEOs: Mandatory exchange membership and KYC.
  
• IDOs: Usually permissionless, with no mandatory KYC.
  

Why Do People Invest in IEOs?

Discover what drives interest in IEOs—and how some tokens explode post-launch.

IEOs attract investors primarily due to their combination of immediate liquidity, reduced fraud risk thanks to vetting, and substantial exchange-backed marketing. Investors are drawn to the quick, dramatic price appreciation experienced by successful tokens immediately after launch.

IEOs are a clear example of asymmetric investments where the potential returns are essentially unbounded, and investors stand to make 100X returns or more. 

Why Some Investors Prefer ICOs

Lower fees, early pricing, and greater privacy make ICOs attractive.

ICOs remain attractive due to lower entry prices, reduced regulatory oversight, broader global participation, and greater anonymity, making them appealing to risk-tolerant investors seeking higher returns.

Risks of Investing in IEOs

Price dumps, exchange dependency, and why due diligence still matters.

Despite their vetting, IEOs carry inherent risks, including price volatility, dependence on exchange integrity, limited accessibility, regulatory challenges, and the risk of post-launch market manipulation or dumping by insiders.

Notably, this cycle CEX listings have massively underperformed tokens launched on-chain via DEXs, leading some to hint that the era of IEOs is over. On the other side of this trade are participants who believe that the Trump admin and a lighter touch regulatory approach will revive this launch style. 

How to Discover New IEOs Before They Launch

Tools, platforms, and strategies for finding the next big token.

• Monitor Exchange Launchpads: Regularly track Binance Launchpad and similar platforms.
  
• Use ICO Fire: Comprehensive listings of upcoming IEOs and ICOs.
  
• Follow Social Media Channels: Exchanges and projects announce presales prominently.
  

How to Identify High-Quality IEOs (and Avoid Scams)

What to research before investing—from whitepapers to team verification.

• Review the Whitepaper: Confirm clarity, technological viability, and market potential.
  
• Check Smart Contract Audits: Prioritize projects with audited smart contracts.
  
• Look for Transparent Teams: Teams should be publicly verifiable and accountable.
  
• Evaluate Tokenomics: Assess realistic token distribution and incentives.
  
• Think about the marginal buyer. Who will want to buy this asset after you, and why?
  

How to Participate in an IEO

Step-by-step instructions to join and invest in an IEO.

• Step 1: Register and complete KYC on the chosen exchange.
  
• Step 2: Deposit crypto or purchase via debit card.
  
• Step 3: Keep updated on IEO announcements and schedules.
  
• Step 4: Have a reminder set and purchase ASP once the IEO opens.
  

What Are the Best IEOs to Watch Right Now?

Hottest presale tokens and upcoming IEOs worth tracking in 2025.

To get the most up-to-date information, investors need to be constantly checking OKX Jumpstart and the Binance Launchpad. IEO sales typically only last several days, and the best way to stay ahead of other investors is to be more informed and check more frequently—nobody knows when the next future blue chip will choose to go to market via IEO. 

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