What is Initial Exchange Offering (IEO)?

An IEO or Initial Exchange Offering is a token distribution event that is specifically conducted on a cryptocurrency exchange platform. Similar to Initial Coin Offerings (ICOs), IEOs are a fundraising method for many crypto-oriented companies. The U.S. Securities and Exchange Commission (SEC) has released guidance recommending caution when investing in an IEO and says IEOs may be in violation of federal securities laws. These IEOs may lack many of the investor protections of registered and exempt securities offerings.