What Due Diligence Does an Exchange Typically Perform for an IEO? ⎊ Path

What Due Diligence Does an Exchange Typically Perform for an IEO?

The exchange typically reviews the project's whitepaper, business model, legal compliance, and the team's background and experience. They assess the technical feasibility of the product and the viability of the tokenomics.

This rigorous process is intended to protect their users from fraudulent or low-quality projects. The exchange's reputation is at stake.

They also check for market demand.

How Can Investors Verify the Legitimacy of a Project’s Team and Roadmap?

What Is the Role of a Whitepaper in Assessing an ICO’s Legitimacy?

How Can Due Diligence Mitigate the Risk of a “Rug Pull” in an ICO?

What Is the Role of the Project Team during a Smart Contract Audit?

What Role Do Legal Disclaimers Play in an ICO White Paper?

What Are the Typical Risks Associated with a Traditional ICO That a Reverse ICO Mitigates?

What Is the Effective Time Limit for Responding to a Margin Call in Traditional Finance?

How Does an Exchange Mitigate the Risk of a “Rug Pull” in an IEO?

Glossar

Due Diligence

Investigation ⎊ Due diligence within cryptocurrency, options trading, and financial derivatives necessitates a rigorous examination of underlying protocols, smart contract audits, and counterparty risk assessments, moving beyond traditional financial scrutiny.

IEO

Launch ⎊ Initial Exchange Offerings represent a capital-raising mechanism for cryptocurrency projects, functioning as a specialized form of crowdfunding directly on cryptocurrency exchanges.