There is no sense in disclosing IEO if we do not compare it with ICO. The thing is everybody knows what ICO means and one can estimate features of IEO only in comparison with ICO. Despite of all features shared by these methods of fundraising there is a huge difference between them.
The key and the first difference between IEO and ICO faced by any project is the launch procedure. ICO can be launched with any applicable blockchain-platform (Ethereum is usually used) while IEO can be launched on exchange platform.
You can launch ICO without any verification. All you need is to reach technical compliance - create a token and develop smart contracts.
With IEO it becomes a little more difficult. Aside with technical side, there is also an exchange verification you need to pass to participate in IEO hosted by it.
This is where the interesting part for the potential investor comes. The fact that ICO is not really regulated can be considered both as a strong or a weak side of the fundraising method. It is a strong part because you do not have to make any efforts for bureaucracy purposes, and the weak side is that an absence of tools for investors' protection creates too much opportunities for scammers.
Since the moment ICO appeared on the scene we have witnessed numerous scam projects
. Those used to have whitepaper, some of them even had MVP, however, it appeared later that the runners weren't going to provide any service at all.
With IEO you are at low risk of something like that to happen. When launching IEO an exchange acts as a moderator verifying project before it appears in the IEO listing.
Considering that the name of the project participating in IEO will be linked with the name of the exchange, the exchange is very motivated to accept only reliable companies.
Generally, IEO executes the same function as the US SEC or any other organization with similar functions in other countries verifying the company when it applies for IPO. It is okay if the verification process held by the exchanges is less qualified for now. Exchanges need more time to make the verification process more advanced. Starting an IEO concept is already a huge step forward compared to ICO. Follow the link
if you want to get acquainted with Binance recommendation for those who wants to be included to the listing. On a screenshot below you can see a fragment of the form that has to be filled in when you apply for the IEO: