In cryptocurrency, what is an IOU? Simple Terms for Understanding Crypto IOUs
"I Owe You," or IOU in bitcoin, is a commitment to pay a specific sum of cryptocurrency in the future.
When a platform or exchange is unable to allow direct asset withdrawals, they are frequently issued.
Pre-launch tokens or assets that are not yet accessible on a blockchain are sometimes covered by crypto IOUs.
Because they depend on the issuer to fulfill the redemption, they are subject to counterparty risks.
Although useful for trading, IOUs are merely claims to cryptocurrencies rather than real ones.
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