Initial Exchange Offering (IEO) Guide
An Initial Exchange Offering (IEO) is an improvement of the Initial Coin Offering (ICO). Unlike the ICO, an IEO operates through a platform backed by a cryptocurrency exchange. Basically, this is to say that the crypto exchanges are the ones that administer the fundraising process.
In an IEO, the project teams behind a certain token do not have a direct correspondence with the investor. Instead, the project team approaches a cryptocurrency exchange and pitches the idea behind their token. Then, the crypto exchange conducts detailed research on the viability and feasibility of the Project.
A list of the main things that you should have in order before pitching for an IEO:
- A breakdown of your team
- How the project’s financial model works
- A competent team
- A thorough and Clear Explanation of How your Model Will Work
- Your Target Market
- A list of your competitors and risks to your project.
If you are looking to engage with a cryptocurrency exchange to launch your token, you will be forgiven if you believe that you will not have to put that much effort into marketing your project, as being hosted on the exchange will provide ample exposure on its own. Despite this, it is still recommended that you strongly invest in your marketing pre-IEO.
PR is one of the best ways to get information about your project out into the crypto world. It also allows others to take notice of your expertise, meaning in the future, they will view you and your project as trustworthy and likely to succeed.
Another great, lost cost method of marketing your project to the masses can be found in social media. Almost everybody uses social media these days, and certain platforms such as Reddit and Medium are natural hotbeds for cryptocurrency enthusiasts, along with LinkedIn.
The Legal Side
A majority of the exchanges that are offering IEO launchpads will require you to undergo some legal checks to ensure that your token is, in fact, a Utility Token, among other checks. Furthermore, different exchanges may have a different process and requirements for you. To avoid any potential roadblocks when you are in talks with your chosen exchanges, you should refer to your own legal advisors who can give you concrete legal information about the state of your token.
Choosing Your Exchange
Once you have done all of the necessary marketing, audited your whitepaper and evaluated your business plan to perfection, it is now the time for you to make your decision on the exchange that you will be using to launch your IEO, now that you have the highest chance of success. There are a number of factors to consider when you are launching your IEO. Firstly, you want to try and get a relationship with the largest exchange possible.
Deciding to launch your token through an IEO, rather than an ICO or STO definitely has its benefits. Your customers will have the added relief of knowing that you are going to be a legitimate organization, and you will not have to jump through too many hoops to begin your sale, in contrast to ICOs, which are notorious for scams and STOs, which are seen as too regulated.
There are a number of things that you will have to consider about your project, and you may have to do additional work to get an exchange to agree to work with you. However, if you can get exchange to work with you, you’re winning. If you are on a more popular exchange and have a great product, with good marketing, your offering is likely to sell out incredibly quickly.
To achieve that, you need the help of an experienced and successful marketing and PR agency, such as Vitor Services. We ensure your success, providing you with community management and support, social media marketing, and sound PR, making your project viewed as trustworthy and likely to succeed. We also offer such services as commenting, attracting members and increasing their activity, hidden marketing, etc.
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