Chainex And MenaPay Partner to Offer The First Initial Exchange Offering
ChainEx recently announced that they have partnered with MenaPay for its first initial exchange offering (IEO) and is selling MPay tokens from 15 March to 15 May 2019.
We are extremely excited to conduct the #IEO with @ChainEXIO and MPay tokens will be sold for $0.165 with a 20% bonus. The investors can buy the tokens from the agreed crypto exchanges. To learn more: https://t.co/B9iKo7TiQ9#crypto #exchange #blockchain #trader #middleeast pic.twitter.com/oxQC9ISeUi
— MenaPay (@menapayio) March 14, 2019
What Is An Initial Exchange Offering?
Simply put, unlike an ICO (initial coin offering), an IEO (initial exchange offering) is not open to the public. You’ll have to be a user of the hosting exchange to participate in the token sale. While an ICO allows any contributors to buy the token for sale by sending funds into a specific address, an IEO requires contributors/users to buy the token by using the exchange’s accounts.
Many people thin that IEO is simply old wine in a new bottle but that’s not the case. The biggest problem with ICOs is that they’re not monitored by any third parties. Basically, anyone can launch an ICO, as long as you have a white paper to convince investors to put funds into your company. On the other hand, an IEO is a very, if not entirely, different model. While both ICOs and IEOs share the rationale of an initial public offering (IPO), in an IEO, the exchange becomes an administrator.
In an official announcement by MenaPay, they state:
“The IEO approach is beneficial for the start-ups as most of the developers are qualified in the blockchain, but they are not ICO experts. Thus, it is much better for the startup to rely on the expertise of exchange to ensure the process done in a secure way to both sides. Potential investors will feel more comfortable purchasing tokens using well-known cryptocurrency exchange platforms online and this system is a great advantage for those who want to invest in real projects.”
How To Participate In An IEO?
In the blog post announcing the IEO, the company has given instructions to people who wish t participate in it.
- Research for an IEO
- Find out which exchanges will be listing
- Sign-up on the Exchange
- Find out which cryptocurrency will be accepted
- Hold up until the IRO starts