In the past few years, the growth of cryptocurrency has not just impressive, it has exceeded all the expectations and bewildered the skeptics.
It has emerged as a potent vehicle of investment and has helped in making tokens more acceptable in business with lucrative prospects.
If you have followed the tidings of this technology closely, then you definitely know about the concept of Initial Exchange Offering (IEO).
This particular instrument makes crypto investment not only profitable but also prudent for all the people who look for more reliable assets that ensure significant returns. The unique method of launching a coin using an exchange is something that has established a high level of trust among the investors.
As a result, we are seeing a steady rise in the number of IEO launch services that are helping various entrepreneurs in raising the capital for their ventures across the globe. We have also seen some massive scams in the name Initial Coin Offering (ICO) that caused distrust in crypto among many people.
With the advent of IEO, people have found a more trustworthy instrument that guarantees high profits. ICOs definitely roused the interest of people into cryptocurrency, but when it started to show some notorious repercussions, investors got wary about it and stopped believing it as well.
It is because of the fraudulent activities that we have the concepts of IEO, ITO, and STO in existence.
The options of crowdsale have now got expanded and they all are now focused on creating a bond with the investors.
In this article, we will talk about IEO and its impact on a different domain, so let us start with some basic questions first:
- What do you mean by Initial Exchange Offering?
- How does IEO become a go-to means for raising funds?
- How to make your IEO an absolute success?
- The Dos and Don’ts of ICO
- How to find the right crypto exchange for your IEO?
- How to get your IEO registered and approved?
Step:1 Registration of Exchange
Step:2 Formation of Exchange Team
Step:3 Payment for Listing
Finalizing the launch
Table of Contents
What do you mean by Initial Exchange Offering?
Like all the other token-based crowdfunding instruments, IEO also helps in selling the tokens to the investors, but instead of going independent, this one does it by associating with an exchange.
That is the only and a significant difference between ICO and IEO, the former is launched on the company’s own website while the latter gets released on a third party exchange platform. Now you might think what difference does it really make if you just change the platform.
To understand that, it is important to differentiate between the scenarios, when an ICO has launched the company initiating it has total control. On the other hand, when it is an IEO, the project owner has to share the ownership and management of the token with the exchange.
The biggest difference that it makes is that the company does not single-handedly manage the sale of tokens, which as a result, decimates the chances of fraud as no scamster would be willing to share the profits or right to sell the tokens with a regulated exchange.
Binance was the first exchange that made us familiar with the idea of IEO by launching the first of its kind on its own platform.
How does IEO become a go-to means for raising funds?
Since the incidents of fraud with ICOs tainted the name of crypto tokens, a large number of investors stopped believing in it. They wanted more assurance of profits without any risk of losing their money and IEO delivers exactly that.
With this instrument, investors have a guarantor in the form of an exchange platform and know that even if something goes wrong, they have someone who’ll give them answers.
Other than IEO, we also have Initial Token Offering (ITO) and Security Token Offering (STO), which prove to be much more effective than ICO in every way. They all are focused on building a stronger bond on the basis of transparency.
Among these new token-based crowdfunding model other than ICO, IEO has gained more popularity because of the following reasons:
They are conducted in a controlled and are overseen by a regulated third-party which results in lesser chances of getting into a fraud.
IEOs are regulated with a specific set of rules which means that every activity under this campaign is controlled and there is no risk of losing money.
Unlike ICOs, IEOs are open only to the members of the exchange which means that the project is inviting investors very systematically.
The amount you pay for buying tokens does not directly go to the project owner, it is routed to an escrow first for the verification and once it is done, then it is advanced further.
The registration process of an IEO is very detailed and it scrutinizes the entity of the project owner thoroughly. It is not really possible for fraudsters to bypass the stringent process and launch the tokens.
From the viewpoint of security, IEO emerges as the safest option as it is managed by multiple parties who work for the success of the project.
Every token that is launched on an exchange platform gets listed as well and it happens as soon as the sale ends.
After reading all these reasons, you will be surely be inclined to choose an IEO over the rest of the crypto investment options.
Also Read : Why Need IEO Launch Services For Raising Funds?
How to make your IEO an absolute success?
Despite all the positive aspects of IEO, it is important for the entrepreneur to be 100% sure about the strategy of development and marketing to make the campaign successful.
To make any project successful, it is a must that you work on every aspect of it and make everything convincing for the investors.
Due to the involvement of Binance and various other prominent exchanges, it has become quite easier for a large number of investors as well as businesses to join this marathon and to get mutually benefitted in a long run.
If you want to know the technicalities of this instrument then just keep reading and we will tell exactly how you can make use of this ingenious solution for your venture too.
The processes of developing and marketing an IEO are not different from that of ICO or any other crowdfunding vehicle. Therefore, the basics remain the same:
- A feasible business model
- Advanced technologies
- A flawless MVP
- Token
- A team of skilled professionals
- Modest hard cap
- Far-reaching marketing strategy
- Robust website
All the aforementioned items have to be mentioned in the whitepaper which is an elaborate document that has to be drafted by skilled and experienced writers.
Therefore, along with all the other aspects, put some deliberate efforts on whitepaper as well and make sure that it does not leave a loophole that could minimize the chances of success.
How to find the right crypto exchange for your IEO?
Different exchanges follow a different set of rules and you need to find out which one of them works the best for you. You have to be sure about the regulations of all the exchanges before associating with them.
It is certainly possible that the strictures of some exchange will not suit your requirements and it is taking you a little longer to find a platform that could come to terms with your requisites. You need to be very patient in this process and start finding it while you are working on the development.
To make this easier, there are plenty of exchanges offering this service and you can choose any of them after knowing their terms:
- OK Jumpstart
- Bittrex IEO
- ProBit
- Bitmax Launchpad
- Huobi Prime
- KuCoin Spotlight
- Binance Launchpad
You must go through their terms and conditions for launching an IEO before making up your mind.
You must not fear racking your brains when it comes to researching about the exchanges.
How to get your IEO registered and approved?
The final step for launching your IEO is to go through the registration process, if you spend some time knowing it beforehand, it would definitely be beneficial for you in the end.
Here’s the step-by-step guide for the beginners considering this instrument for their crowdfunding project:
Step:1 Registration of Exchange
First of all, you need to visit the website and read all the details in the application form. The basic details asked in these forms consist of the company name, token type, the object of the project, etc.
This form can consist of 8 pages and it will be a time-consuming process to fill it while giving full attention to the details.
There are companies that help you in filling the form as well, Technoloader is one of the IEO solutions providers that take care of everything including this activity.
Once the form is filled and you are sure about the details, submit it.
Step:2 Analysis of the form
After the submission of the review form, it is forwarded to the concerned team of the exchange for analysis, they check all your feedbacks.
They do a detailed review and analyze your project on all the parameters that include the scope of success, team, readiness for sale, different stages of development, marketing strategy, etc.
You have to ensure that you provide all the genuine details about your project so there is no conflict when the exchange’s team crosschecks it.
Step:3 Payment for Listing
There is a fee for listing your IEO on an exchange and the process is completed when you pay that. Other than the fee, there is a certain amount of interest or share that the platform earns from the proceeds of the token sale. The fee could be one-time or it could be payable in installments as well.
If you work with a crypto exchange development company then it is possible that you could negotiate with the platform to truncate the amount of fee.
Besides that, they will be handling every single task of your project from the drafting of the whitepaper to the development of coins, making the marketing strategy, etc.
Finalizing the launch
Since its advent, cryptocurrency has been evolving and offering something new to the users for its speedy adoption. The different phases of progression have shown us things like ICO, IEO, and various tokens.
Therefore, it is recommended to make the most of the ongoing solution which is IEO. By associating with a reliable service provider, you can ensure that raising funds is easier and your vision gets materialized easily.
Technoloader is one of the companies that make IEO development and marketing highly productive for every enterprise. With our skilled and experienced professionals, you can make your campaign a huge success and deliver great results at the end of the process.
