Steps to Launch an Initial Exchange Offering IEO Successfully

The global OTC platform that is the best for digital assets. Some tokens didn’t start trading on online platforms at all, which naturally led to the collapse of projects and losses among investors. In fact, IEOs are a new form of ICOs, with an exchange becoming a key project partner. The coins’ listings are done just a couple of days after the campaign ends. For an IEO to work, the project seeking to tap into the crypto market for capital must be listed on the cryptocurrency exchange where the initial offering will take place. This way young crypto projects reduce their marketing efforts and need not worry about crowdsale security. Another disadvantage of initial exchange offerings is that the tokens issued must support the cost of all the fees. Token issuers also have to deliver all of the marketing costs for the token.

You should determine the number of tokens to develop and the blockchain network to create them. Most developers prefer the Ethereum network because of its powerful tools. However, the platform is prone to congestion and attracts high gas fees. So, developers can consider other blockchains, like EOS, Binance, and Solana. It’s advisable to create a sample for your project to guide potential investors. An operational model for an IEO helps your potential investors to grasp your concept, decide on its soundness, and get convinced to fund the project. The Office of Investor Education and Advocacy has provided this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law. We know the struggles of hosting an independent token sale from first hand experience.

Tips for launching a successful IEO

With IEO, you can build trust with investors off from the start ensuring successful and effective crowdsale. Read more about how much is bitcoin in us dollars here. As a first step we’ll evaluate if your project is credible enough to be listed on the IEO platform. Your IEO whitepaper details help investors make rational investment decisions regarding your project. Here, we explain an Initial exchange offering and explore various tips for launching a successful IEO-based project. The exchange does necessarily legitimize the IEO project by default. The differentiator between an IEO and an ICO is the safety of the investment process. Many investors tend to find IEO platforms more appealing because there’s a greater level of due diligence than what’s seen with an ICO. Token issuers are not tasked with managing the crowdsale security under an IEO, and they can also benefit from the exchange’s extensive client base to solicit greater investor interest. For companies interested in raising funds, IEOs are usually preferred to ICOs.

Users’ trading fees of currency exchange will be adjusted. If you encounter any problems, please contact our official email service. And we will provide you with the most satisfactory service. If the assets are abnormally frozen after canceling your order, please contact LBank official customer service immediately. As the token sale is conducted on the exchange’s platform, token issuers have to pay a listing fee along with a percentage of the tokens sold during the IEO. In return, the tokens of the crypto startups are sold on the exchange’s platforms, and their coins are listed after the IEO is over.


This will be beneficial to attract new users to their platforms. Ethereum is the second-largest cryptocurrency after Bitcoin, with $20 billion in capital and $12 billion every day trading volume. Remember that the prospective project’s tokens can sell out very quickly. If you don’t have an account on that crypto exchange, sign up. After you find an IEO you want to invest in, you need to determine which exchange the token sale will be held on.
initial exchange offering
IEOs are available exclusively to the exchange’s users, although some IEOs may take place in several exchanges. Just like ICOs, IEOs allow investors to get new cryptocurrencies while raising funds for promising crypto projects. An IEO, or initial exchange offering is a fundraising method for cryptocurrency projects a lot like an Initial Coin Offering . The premise is still the same – a token issuer conducts an IEO to raise capital for project expansion. The difference lies in the use of a crypto exchange to host the token sale.

Enter the amount you want to buy, choose the payment currency and click buy. The Liquid IEO platform has been crafted to provide the best possible IEO experience for all involved. Liquid has been successfully hosting IEOs for more than a year already. There is no longer a need to sling your personal data at hundreds of different providers, hoping to gain “exclusive” access to an ICO. Other popular IEO launchpads are Huobi Prime, OKEx Jumpstart, Probit Launchpad, Coinbene and more. Unlike ICOs, where contributions are sent to smart contracts, participants send contributions through the platform that hosts the IEO.
initial exchange offering
Manage your positions easily with our intuitive API, trading platform and advanced order options. Our advanced proprietary multi-market order technology enhances liquidity, tightening spreads and reducing slippage. Liquid is a user-friendly platform built for everyone, from beginner to pro. This is the first stage in which tokens need to listed for IEO project. The startup needs to come up with the idea, check its feasibility, conduct a survey regarding its market need and position. Then look at the budget and investment plan to launch an IEO. For all this process, proper planning and experience in the relevant project niche are needed. Moreover, consultation with field and market experts can help better in analyzing the scope. The project should be remarkable to get listed on crypto exchange platforms. Firstly, interested projects and investors register themselves on the Initial Exchange Offering platform, in order to launch the process of token initiation and buying tokens, respectively.

During the last couple of years, however, the crypto community has been shifting to other models such as Security Token Offerings , Initial Exchange Offerings , and Regulated Token Offering for the US market. Read this article to find out what an IEO is, what its benefits are, and how to participate in one. Multinational Bank — The company helped one of the top 3 ranking Multinational Banks to integrate various cryptocurrencies into their banking application. — is a Live app with 100,000+ downloads, All-in-One Cryptocurrency current account. The entire development from scratch carried out by Blockchain Simplified. Blockchain Simplified is a Top blockchain development company in Pune — India which works on all major Blockchain requirements. We specialise in Blockchain, Web and Mobile development .

  • Understanding why can help you to make the best choice for your investment activities.
  • Since 2008, the biggest financial names have entered the cryptocurrency space, from IBM to Goldman Sachs, and most recently Facebook, which launched the blueprint for its own cryptocurrency on Tuesday.
  • With respect to efficiency and security, IEOs take edge over ICOs.
  • The action you just performed triggered the security solution.
  • But with initial exchange offerings, all of these obligations can be handled by the exchange, making it hassle-free for the developer involved.

Repeated email marketing targeted at a specific group of investors to create hype, credibility and eventually convert them to potential leads. Our team, with abundant knowledge on blockchain & cryptos, assists you in preparing a Whitepaper that explains the project in detail. IEOs have been considered the most successful platforms to raise funds since they’re available globally. Investors from anywhere in the world can participate in an IEO. An IEO project undergoes screening and background checks before being listed on an exchange, which makes the project assertive and creates a state of trust among investors. IEOs are considered the most easiest and secure means to fundraise for a project. Given the benefits they offer, individuals and businesses prefer IEO over other crowdfunding methods. In Blockchain Firm’s opinion, here are the six reasons to choose IEO for a blockchain or crypto project.

Initial Exchange Offering Advantages

Almost 60 billion BTT tokens were sold out in minutes and raised approximately 7.2 million USD. Most exchanges use IEOs to add another use case for their native token which is likely to raise its value. The IEO project teams are neither anonymous nor fake, so they won’t disappear after collecting your funds. Investors do not deal with the IEO project team directly, but with the exchange which makes it more credible and secure in case things go south. Although exchange-assisted ICOs were a thing for a while now, IEOs started to gain traction after the launch of Binance Launchpad at the end of 2019. There have already been over 50 IEOs in 2019, which raised over $159 million, as per ICObench.

The use of Utility Tokens allow for investors and business to mutual benefit due to the additional access given by holders of a given business utility token. The IEO process mainly aims to eliminate scam in the crypto fundraising sector. The last couple of years have seen a drastic shift in how crowdfunding is staged, side-lining Initial coin offerings , an Initial Exchange Offering has emerged as a hot trend of 2020. Also, because of mandatory KYC—submitting personal details, the investor must submit personal information before investing.

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As well as poring over the white paper, an IEO platform will examine a number of other factors before giving a blockchain project the green light. For example, Binance Launchpad is one of the trading platforms that aims to deliver innovation and bring IEOs to the crypto market. The platform has helped more than a dozen blockchain projects raise capital since launch. 3) The smart contract is operated by the company or startup conducting the ICO token sales; In the case of IEO, it is the cryptocurrency exchange that operates the smart contract. IEOs provide serious projects with a legitimate way to raise capital in a cryptocurrency space that is increasingly characterised by fraudulent schemes. The authenticity of an already existing exchange platform also serves as a major source of incentive for investors seeking investment opportunities. At present, an increasing number of cryptocurrency exchanges are joining the growing trend of IEOs and more will continue to enter the fold. The BW mining pool has produced nearly 300,000 Bitcoins, 1.5 million Litecoins and nearly 2 million Ethereums, with a total value of more than 3 billion US Dollars. The current daily output of various digital currencies is still more than 1 million US Dollars. A considerable amount of output comes from self-operated mining machines.

We want you to focus on building your product while we work for you to grow your community and generate the strong support it needs to achieve a successful initial exchange offering. Since the cryptocurrency exchange performs due diligence to protect its customers and its reputation, IEO crypto fundraising is, therefore, more straightforward compared to ICO. The exchange also conducts “know your customer” screening, marketing, and selling tokens to investors on the behalf of token issuers. As explained above, IEO crypto fundraising is a modified version of ICO. The cryptocurrency exchange provides a platform for blockchain companies to issue their IEO tokens and raise funds from investors.
initial exchange offering
High-performance engine that can support 100 million orders per second. It also has a distributed environment that offers multi-layer protection. Global presence with professional management teams and consultants. This allows project parts to complete the listing process themselves. BW is one of the most famous mining pools of the early days. This domain has millions of users and provides mining pool services for mainstream cryptocurrencies like BTC, LTC.ETH, ETC. UBTC. SC. To miners from 45 countries. The BW mining pool produced more than 300,000 Bitcoins, 1.5 Million Litecoins, and nearly 2,000,000 Ethereums. The daily output of digital currencies is currently more than 1,000,000 US Dollars.
This will help you reach the highest possible number of investors for a successful token sale. On the other hand, token issuers can be assured of a more legitimized token sale, as well as take advantage of the exchanges’ stable customer base to participate in the crowdfunding process. In addition, a startup doing IEOs won’t have to invest too much on marketing campaigns as exchanges will actively do it on startup’s behalf with their established range of marketing strategies. Cover 180+ countries on globe, supply millions of users with safe & reliable services on crypto asset trading and managing. High-performance engine capable of supporting 100 million orders / second built-in distributed environment offering multi-layer protection. Supports Web, iOS, Android, and H5 24/7 one-to-one dedicated real-time customer support.
§ You are the Person who fails to meet any User due diligence standards, requests, or requirements of EXMO, or otherwise appear to be of high risk, including but not limited to any of the foregoing factors. Understand the terms and conditions that apply to the IEO. If you have any question regarding the IEO or the use of the Site or Services, please contact our support team by filing a support request to. (the “Token”), are at all times subject to the terms and conditions applied by the Issuer, which are made available by the Issuer at white paper or at any other destination notified by the Issuer. And such services, hereinafter referred to as the “Services”). Exchanges are able to list or delist a project anytime they want. The IEO is managed by a central authority, the exchange, which can be seen as counter to the peer-to-peer and decentralized principles on which blockchain technologies were founded on. More legitimacy because projects are vetted by an outside party, which should reduce the chances of a project being an outright fraud or scam.

Is Ethereum a DeFi coin?

DeFI is making its way into a wide variety of simple and complex financial transactions. It's powered by decentralized apps called “dapps,” or other programs called “protocols.” Dapps and protocols handle transactions in the two main cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH).

ICOs, by contrast, don’t undergo the same degree of scrutiny and are thus considered to be a riskier investment by most financial authorities. ICOs were the first method used by cryptocurrency companies to raise money. According to Forbes, thevery first ICOwas launched by a company called Mastercoin in 2013. Ethereum followed suit in 2014, raising about $18.3 million. Its blockchain project was based on what’s known as a charitable foundation model, in which investors make donations to back the project. The IEO has gained popularity mainly because it’s easy to participate in. At the same time, project developers get immediate exposure to the crypto exchange’s user base without needing to fork out millions of dollars to formulate and execute their marketing strategies. The initial distribution of tokens during ICOs usually takes a long time, ranging from several days to a month. When an IEO is launched, the set number of coins finds their owners in just a few minutes or even seconds. As such, startups don’t remain in a state of uncertainty for an extended period of time, and investors don’t have to wait weeks until the project raises the required amount.

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As the cryptocurrency exchange takes a percentage of the tokens sold by the startup, the exchange is incentivized to help with the token issuer’s marketing operations. Initial exchange offering is a popular project financing model that allows blockchain companies to raise funds directly on a cryptocurrency exchange platform. It is strikingly similar to the ICO crowdfunding model except that, in IEO, the exchange facilitates the token sale rather than the startup doing it themselves. With IEO, the exchange provides a platform where you can conduct your token sale as well as a guaranteed listing on the exchange after the sale concludes. In general, you can purchase cryptocurrency during its initial release in the initial coin offerings . But the ICO fever of 2017 proved to be a risky environment for investors. In contrast, aninitial exchange offering offers a more secure alternative for investors to purchase tokens with funds directly from their exchange wallets during the fundraising phase.

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