Initial Exchange Offerings (IEO's)

From CryptoWiki

Basics

"For those unfamiliar with the Initial Exchange Offerings (IEOs), Binance was at the forefront of a revived utility token fundraising mechanism that gained traction throughout 2019. In short, rather than a team conducting an Initial Coin Offering (ICO) and then listing on a reputable exchange, IEOs takes the entire process in-house. Historically, Binance IEOs have offered more advantageous deal structures than ICOs in the form of lower hard caps and purchasing limits to further democratize the capital pool.

Lottery Tickets

Binance’s Lottery System determines IEO eligibility based on the amount of BNB held in any given wallet throughout a predefined window of time. It’s important to note that the larger your BNB holdings, the more lottery tickets you will receive. This does not guarantee access but rather increases the chances that you will be able to participate in the sale (in rare cases more than one time). Similarly, the amount of BNB required to receive a lottery ticket along with the number of lottery tickets earned is changed on a case-by-case basis."

"IEOs are clearly better in certain respects (then ICO's). Greater transparency, as mandated by exchanges, has prevented exit scams and compelled projects to actually ship code and build stuff. Greater liquidity, aided by the guaranteed exchange listing that comes built into the IEO model, has also been an improvement. IEOs limit the amount that can be raised in a public sale, typically capping it around $2 million"