How to launch Initial Exchange Offering (IEO)? Here is the Step by Step Guide!
Crowdfunding has been the major strategy which crypto traders expect in the global market. ICO was the popular fundraising platform till now. With issues revolving such as scams and security, ICO has experienced a downfall recently.
As the ICO platform is burning out, several other fundraising models have emerged and taken the center stage. For instance, technologies such as Security Token Offering has paced already, IEO has awakened the minds of crypto investors.
What is IEO Initial Exchange Offering?
IEO represents Initial Exchange Offering. This new strategy is for fundraising in Blockchain projects. This is administered by cryptocurrency exchange on behalf of the token issuer.
Initial Exchange Offering uses exchanges as part of their token distribution model. It offers more flexibility as it lets the contributor to be in control over the spending.
Thus, when it comes to IEO, both the exchange and the token issuer engage in token marketing.
Should one pick out IEO over ICO?
Before getting into the discussion on IEO Vs ICO, you need to know the primary difference between both!
The difference between IEO and ICO is immediate trading. IEO enables traders with spontaneous tradability.
Here is why one should choose IEO over ICO:
Fundraisers now can get access to the existing user database of the audience.
Exchange listing will get more access to the audiences.
Scams can be prevented completely since the tokens are purchased only from the exchange.
How to participate in IEO?
Participating in IEO is no longer a tedious task. This step by step guide for participating in IEO will help!
Check whether IEO will be issued
Most cryptocurrency projects chose to crowdfund with ICO’s. Therefore the initial step is to check if the project chooses Initial Exchange Offering.
Research on which exchanges will participate
Not all the exchanges participate in all times. Here you need to research on Know Your Customers(KYC) initially.
Sign up on the exchange
The next step is to sign up on the exchange. So, if you don’t have an account on the exchange platform, create one by signing up.
Which currency will be accepted?
For most of the time, Initial Exchange Offering will require Ether for investments, since there are a plethora of projects launched in the Etherum platform.
Wait for the crowdfunding to start and then proceed on buying the desired token you were looking for!
How do Exchanges will be choosing the project?
The process will be the same as the traditional ones. As we have discussed already, raising the money with ICO doesn’t guarantee future success for the project.
It is important to assess the value of the market and the project’s desire to conduct joint marketing campaigns.
Why Initial Exchange offering will be a good choice?
If this is your question, we have an answer for you!
Projects which choose Initial Exchange Offering will have the following benefits:
Projects composed with this strategy will have increased credibility because of the exchange factor. This can lead to low phishing in the crypto field.
Scams cannot be completely prevented but this platform ensures high-end security which can lead to increased confidence in the project.
This can prevent Price manipulation to a certain extent.
What are the Advantages of IEO?
- There are great Benefits of IEO in the crypto capital. Here are a few:
- Initially, only good tokens are distributed through the exchange as it is directly or indirectly relates to the reputation of exchange. This will lead to a better token listing.
- Exchanges also benefit from this strategy. Since the cost of IEO to launch is also simple compared to ICO. IEO is stable and secure compared to ICO.
- Exchanges offer better liquidity than traditional ICO’s where the tokens are listed in the exchanges after a certain amount of time.
- Added, Exchanges offer better user interaction and thanks to the user-friendly interface. This enables new users to interact with IEO and contribute to the project which they like.
So, What is the future of IEO?
Fundraising has been the most crucial way everyone is marching towards! This approach can bring a lot number of potential customers for your business which can boost the profits. Added, it might help to make cryptocurrencies and exchanges more appealing to the global market.
If you Hire IEO developers you will avail the benefits such as:
- Higher security for the users.
- Increased Transparency compared to the former approaches.
- A Good system for new users and beginners.
- What more than consisting of a reliable banking system.
Why do you need to hire the IEO Development Company?
Since IEO has been the latest strategy, people need to brush up with the information to keep ahead of the race.
If you need one, you can get in touch with us to get your product delivered!
Hiring Zab Technologies pioneer in Blockchain Development can provide you with flawless solutions as expected!
We render our services 24*7 to keep your queries updated anytime!
Happy Reading 🙂
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