Initial exchange offering (IEO)
Major non-U.S. domiciled exchanges like OKCoin, KuCoin and Binance offer to host IEOs. U.S. exchange Bittrex hosted two IEOs in April and May 2019 for Ocean Protocol and VeriBlock respectively, both of which had lost more than 75% of their offering price within months of issuance.
On May 13, 2019, Valerie Szczepanik, the SEC’s senior advisor for digital assets and innovation, told a panel audience at CoinDesk's Consensus conference that issuers and exchanges which conduct IEO's may be subject to U.S. regulation if any of the buyers are U.S. residents.
In October 2019, an article in CoinTelegraph said that 65 IEOs had been launched in the previous six months, including 13 in the United States.
- Bitfinex Enters the Initial Exchange Offering Race With Tokinex. CoinDesk.
- IEO’s Nightmare: Ocean Protocol Lost 80% Following Its IEO On Bittrex. CryptoPotato.
- Amid NYAG scandal, Bitfinex plans to support IEOs via new platform. TheBlockCrypto.
- SEC’s Crypto Czar Says Exchanges That List IEOs May Face Legal Risks. CoinDesk.
- A New Trend in Crypto Funding Campaigns: Companies Resorting to IEOs. CoinTelegraph.