IEO stands for Initial Exchange Offering. It is a type of fundraising method for cryptocurrency projects, in which the project team collaborates with a cryptocurrency exchange to launch its tokens directly on the exchange's platform.

IEO is similar to an Initial Coin Offering (ICO), but with one major difference: the tokens are sold on an exchange, rather than the project team's website. This means that the exchange is responsible for conducting the sale, as well as verifying the project's legitimacy and conducting due diligence.

The benefits of an IEO include increased liquidity, exposure to a large user base, and the credibility and trust that comes with being endorsed by a reputable exchange. However, IEOs also have their own set of risks and drawbacks, such as high fees and the potential for market manipulation.

An IEO typically works as follows:

• A cryptocurrency project team partners with a cryptocurrency exchange to launch its tokens through an IEO.

• The exchange conducts due diligence on the project to ensure its legitimacy, credibility, and compliance with regulatory requirements.

• The exchange lists the project's tokens on its platform and sets the price and sale date for the IEO.

• The exchange markets the IEO to its user base, attracting potential investors to participate in the sale.

• Investors who are interested in participating in the IEO must register an account on the exchange and complete any required KYC/AML procedures.

• Once the IEO starts, investors can purchase the project's tokens using the exchange's native cryptocurrency or other accepted cryptocurrencies.

• The exchange then distributes the purchased tokens to the investors' exchange wallets.

• After the IEO is completed, the project's tokens are listed for trading on the exchange, providing liquidity to the project and its investors.

In exchange for their support, the exchange usually charges a fee for hosting the IEO, which is typically a percentage of the funds raised during the sale. The project team may also offer bonuses or discounts to investors who participate in the IEO to incentivize their support.