From the ICO Wave to the IEO Era: Unveiling the Evolution and Investment Opportunities in the Crypto Financing Ecosystem

IEO Reshaping the Financing Landscape: Why Traditional Methods Are Being Phased Out

Cryptocurrency fundraising has gone through multiple stages. Early ICOs (Initial Coin Offerings) opened the door to democratized financing, but issues like lack of regulation and frequent scams led many investors to lose their entire investments. Today, the exchange-led IEO (Initial Exchange Offering) model is gradually becoming mainstream, transforming the entire fundraising ecosystem.

The core logic of IEO is simple: well-known exchanges act as “guarantors,” conducting fundraising on behalf of projects. Under this model, exchanges perform strict KYC (Know Your Customer) and AML (Anti-Money Laundering) checks for each project, providing investors with greater security. In a sense, the exchange’s reputation becomes the investors’ “security blanket.”

Compared to the “exit scam” risks during the ICO era, these risks have been significantly reduced. Market data shows that projects using the IEO model have a fraud rate much lower than during the early ICO days, which is why institutional and individual investors are increasingly favoring this financing approach.

The Dual Value of IEO Platforms: Why Both Projects and Investors Need Them

Appeal to Project Teams

A newly launched blockchain project faces enormous challenges when trying to raise funds from zero. IEO platforms solve these problems:

Traffic Conversion: The platform hosts millions of active users. Projects don’t need to spend effort finding investors; users are already waiting for opportunities. This effectively saves about 80% of marketing costs.

Reputation Backing: Launching on a well-known platform grants the project an “official certification” halo. This endorsement has a huge impact—it directly influences investors’ psychological decision-making.

Immediate Liquidity: After fundraising, tokens can be traded immediately on the platform, solving the awkward situation in early ICOs where there were no trading pairs post-funding. This prevents investors from being trapped and encourages participation.

Regulatory Compliance: The platform bears all compliance costs—from KYC to AML, from regulatory documentation to legal review—allowing project teams to focus on product development.

Protection for Investors

From the investor’s perspective, IEO platforms also provide multiple layers of protection:

Strict Screening: Not all projects can go live. Platforms evaluate technical feasibility, team background, business model, and other factors; only vetted projects can raise funds. This greatly improves the success rate of investments.

Risk Isolation: The platform manages investment amounts; ordinary users can participate, but their investment limits are controlled. Additionally, the platform sets caps on fundraising amounts to prevent excessive risk concentration in a single project.

Transparent Allocation: Mechanisms like lotteries or first-come-first-served ensure fair distribution. This avoids the “insider priority” phenomenon common in early ICOs.

Trading Convenience: After fundraising, trading pairs are immediately opened, allowing investors to adjust their positions at any time without being forced to hold.

Successful Cases of Emerging Projects: Data Speaks

Historical data shows that projects funded through legitimate IEO platforms perform better than early ICO projects. For example:

Victoria VR project investors achieved a 212x return. LUKSO provided 187x gains. Cryowar grew by 169x. Chumbi Valley also reached 129x.

What do these numbers reflect? The effectiveness of strict screening mechanisms, market recognition of quality projects, and genuine returns for investors participating in formal financing.

A recent example is Sui (SUI). During its fundraising on a certain platform, nearly 250,000 users participated. A total of 225 million SUI tokens were sold at 0.1 USDT each. As of the latest data (December 26, 2025), SUI’s trading price has reached $1.41, representing approximately a 14x increase from the issuance price to the current price.

This is not coincidence but a reflection of systemic advantages.

Detailed Explanation of Technical Analysis Tools: How RSI Helps You Make Better Trading Decisions After IEO

After fundraising, tokens enter the trading phase. At this point, mastering some technical analysis tools becomes essential. RSI (Relative Strength Index) is one of the most widely used tools.

Core Concept of RSI

RSI calculates the ratio of upward to downward price momentum, producing an index from 0 to 100. When RSI drops below 30, it indicates an oversold condition; when it rises above 70, it indicates an overbought condition.

The beauty of this indicator is that it reflects not only price movements but also market participants’ psychology. When RSI is low, the market is panicking, and a bottom may be near; when RSI is high, the market is overheated, and a correction risk increases.

Practical Signal: When to Sell

Take Bitcoin as an example. When BTC’s RSI breaks above 70, although the price is still rising, market enthusiasm has reached its limit. The wise move is to gradually reduce positions, as such extreme conditions often precede short-term corrections.

Practical Signal: When to Buy

Conversely, when RSI falls below 30, selling has been excessive, and the probability of a bottom increases. This is a good entry point. However, relying solely on this signal is not enough.

Limitations and Proper Use of RSI

RSI can give false signals. In a strong uptrend, RSI may stay above 70 for a long time without correction; in a bear market, RSI may stay below 30 and continue declining. Therefore, never rely on a single indicator.

Professional traders typically:

• Use RSI to identify key levels
• Confirm signals with other tools like MACD, Bollinger Bands, trendlines
• Combine multiple indicators to ensure they point in the same direction

Finding Hidden Reversal Points: Divergence and Convergence

RSI can also help traders spot early signs of market reversals, which requires understanding two concepts:

Convergence: Price makes a new high, and RSI also makes a new high. This indicates sustained buying strength and trend extension.

Divergence: Price makes a new high, but RSI declines. This is a warning signal—although the price is still rising, buying momentum is waning. Historical data shows such divergence often signals the start of a reversal.

The opposite logic applies to declines: if the price continues downward but RSI makes higher lows, it indicates weakening selling pressure and a potential rebound.

Adjust RSI Parameters for Better Signals

The standard RSI uses a 14-period setting. Traders can adjust based on their style:

Changing the overbought/oversold thresholds from 70/30 to 80/20 results in fewer but more reliable signals. These signals occur less frequently but with higher accuracy.

Importance of Timeframes

RSI signals on the 4-hour chart are much stronger than on the 15-minute chart. The reason is simple: short-term noise is high, while long-term signals are clearer. Professional traders tend to use RSI on longer timeframes and then refine entries on shorter charts.

Why Technical Analysis Is Crucial for Traders After IEO

After IEO fundraising, tokens will experience price fluctuations. Early investors need to know when to sell to lock in profits, while new traders need to find reasonable entry points. RSI and other technical indicators serve as essential navigation tools.

From the sale of 225 million SUI at 0.1 USDT to the current price of $1.41, a 14x increase, how much of this is from long-term holders’ gains, and how much is from short-term traders profiting through technical analysis? The answer is: both, and they complement each other.

Summary: What Investors in the IEO Era Should Master

First, understanding the criteria for choosing IEO platforms is crucial. Not all fundraising platforms are the same—their review mechanisms, user base, and historical success rates determine project quality. Selecting platforms with strict screening already reduces about 70% of risks.

Second, participation decisions should be based on fundamental analysis rather than blind FOMO. Factors like team background, technical feasibility, and market demand are worth researching.

Finally, after fundraising and entering the trading phase, mastering technical tools like RSI and MACD can help you profit from volatility. But always remember: relying on a single indicator is risky; combining multiple signals is the key.

The IEO model has matured, with opportunities and risks coexisting. Investors who stay informed are more likely to achieve better returns in this ecosystem.