Cryptocurrency exchanges actively use native tokens for promoting and strengthening their market position. After issuing its own assets, new platforms attract a seed capital, and the ones already experienced get to increase capitalization. As for traders, they receive benefits of interest or good discounts on fees, which in turn represents an effective way for an exchange to expand its customer base.
If you have a product or service to deliver that either has a demand but not as much supply or that will create a demand for itself, I don’t think that it matters whether you file for an STO or IEO. But yes, IEOs are a really easy and reliable way to allow investors to participate in token offerings.
Whenever I read the terms IEO and STO, I’m so thankful that we’re no more really talking about ICOs. Though they were a great strategy for building really successful startups, but we humans have the potential to take things to the extreme and use it in a crooked manner. IEOs and STOs washed the stain that ICOs brought upon the crypto industry.