What is an Initial Exchange Offering (IEO)?

An "IEO" or "Initial Exchange Offering" refers to a process where a crypto exchange distributes tokens to its clients in a centralized manner. These tokens are typically marketed as "utility tokens" rather than securities.

However, they often possess characteristics that could classify them as securities in many countries. These crypto exchanges are usually unregulated and unlicensed regarding securities, making the process questionable and potentially risky for both issuers and investors.