> For the complete documentation index, see [llms.txt](https://ubit.gitbook.io/ubit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ubit.gitbook.io/ubit/background/what-is-ieo.md).

# What is IEO?

Initial Exchange Offering (IEO) refers to the fundraising for new projects through digital currency exchange platforms. Trading assets on these platforms are common, but usually, they can only be traded after the developers successfully raise funds and launch the project.

With IEO, potential investors can buy into these assets before they are listed. IEO is supported by the exchange platform, so the startup companies opting for this approach must carefully plan their event. In most cases, the IEO proposal is strictly reviewed by the participating exchange platform. In a sense, the exchange platform guarantees the IEO activity by leveraging its own business reputation.

Although blockchain technology is still in its early stages of development, there have been thousands of digital currency startups and enterprises in the industry. Many of them are competing to attract potential investors through ICO or IEO events.

If the developers of a digital currency project decide to organize an IEO, they must follow a complex set of procedures before raising the first round of funding. The project team must meet multiple requirements, including having a robust and reliable business model, experienced team members, feasible technical use cases, and providing a detailed whitepaper. Organizing an IEO is equivalent to claiming that they will strive to lead the project to long-term success after making these decisions, so they need to select an ideal trading platform for the IEO. Ubit Launchpad, with its innovative IEO rules and a large user base, has become one of the preferred choices for high-quality project IEOs.

IEO serves an important purpose as it caters to the needs of existing digital currency holders. Participating exchange platforms can bring a certain level of credibility to the projects seeking fundraising. Therefore, IEO is considered to be reliable to some extent, as exchange platforms provide guarantees based on their own business reputation. Nevertheless, thorough research should be conducted before making any financial commitments.

For projects looking to raise funds through trading platforms, IEO is undoubtedly a reliable solution. Most initial exchange offerings tend to sell out quickly, depending on the project's vision and use cases. Project tokens will also be listed on the exchange platform after the sales end.