IEO which in full means initial exchange offering is not a new topic in the crypto eco-system. Long before Binance Launchpad, several projects have taken that path to raise funds for there project by offering the native currency of their platform to traders on exchange. I remember observing a few on mercatox some years back. It was definitely no big deal as at that. Today IEO has become a menacing rave in the crypto-space owing to the fact that majority of the ICO in time past have failed to list on reputable exchange for investors. regardless of the hype and uniqueness of a project,  securing reputable exchange with good trade volume is key to the liquidity of digital assets and sad to say it today's crypto investors don't want to wait for products. They rather sell the hype than wait for the long term yield that will accompany this project gaining real-life application.
The impact of this IEO model proposes three debilitating factors on the blockchain community.

1. Lack of widespread distribution of nodes and monopolization of the. Today's IEO model literally plays into the hands of whales. With the likes of bittrex favoring high purchase by a single user. It's not hard to see whales controlling the valuation of these upcoming projects cryptocurrency on exchange. Asides from prices, centralization of nodes can be dangerous as it can lead to treats on the network with respect to mining. A Single-user acquiring a subset of the network can be catastrophic.

2. The IEO mechanism does not truly favor long term growth of this project. Now it's important to note that the majority of these coins sold on exchange are bought not by investors but by traders who actively trade on exchange. Majority of this traders do not no a thing about this project and will dump at the slightest profit or in the face of the slightest loss. Some might say it's part of the market cycle. Weak hands selling to stronger traders but it's key to note that community is very important in crypto compared to other market and it's almost impossible to build suck around traders who do not care or look towards the success of this project.

3. This exchange is also doing too little to protect the interest of participants who take part in these IEOs. In my opinion, it shouldn't just be about raising funds and meeting Hardcaps. These exchange should take up more roles. Some examples I picked up from the Pledgecamp project concept includes. Strategic disbursements of funds raised during these IEO events based on achievements of milestones, certification and other pre-agreed terms all design to ensure this project doesn't just bail off with people's money or fail to develop products that can attract value to the native currency.

In conclusion, a lot more tinkering needs to be done in order for IEOs to continue to flourish and promote the growth of the blockchain community. If steps aren't taken to prevent these impacts, we might see the IEO trend failing just like the majority of ICOs have failed.