In an IEO, the project teams behind a certain token do not have a direct correspondence with the investor. Instead, the project team approaches a cryptocurrency exchange and pitches the idea behind their token. Then, the crypto exchange conducts detailed research on the viability and feasibility of the project.
It is obvious that an exchange which has a global presence has many users who trust its services. Therefore, people may follow any investment opportunity that pops up on the platform without asking questions. As such, it is the prerogative of the exchange to ensure that the project is real and it is an idea that can actually benefit investors.
Background check establishes the risk profile of the project behind the given token. Interestingly, this is more or less a matter of the exchange hedging itself against any possible damage to their reputation if the project turns out to be a bogus project.
An IEO is simply a type of ICO whose administration is not in the hands of the issuer. Since the advent of the cryptocurrency mania, people wanted to get their hands on the fortune it can produce.
The entrepreneurs launched what they christened ‘Initial Coin Offerings’ were investors would purchase a stake in the value of the projects. Just like Initial Public Offerings (IPOs), investors would reap the premium on their investments once the projects hit the ground and begin generating revenue. Therefore, the coming of IEOs is a way for legitimate entrepreneurs to try and invite back the investors with the promise that their projects are valuable.
There are a number of upcoming IEOs where each project focuses on a unique offering. One of them is imsmart.io. According to their web page, imsmart.io aims to build a solution that focuses on the SMEs all over Thailand using the power of its SME 360 Ecosystem and the cryptocurrency market. The team behind the project assured the community that all holders of IMSMART (IMT) Tokens are authentic users and members of the SME community.
The Team will use a combination of artificial intelligence and smart contracts to create a solution that will streamline the KYC process. In particular, the solution targets investors who are the perennial targets for fraudsters who pose as legitimate entrepreneurs. The team hopes to revolutionize the SME industry by plugging the existing disparity between the virtual and physical identities of market participants.
2019, IMSMART TOKEN IMT