Furnish a greater level of trust for your business on the investors’ side right away with the adoption of the Initial Exchange Offerings development solutions of a top initial exchange offering company Shamla Tech!
ICOs put a grand start for the fundraising concept in the early days of blockchain adoption by crypto businesses. But after some point, IEO’s evolved as the new ways of raising funds as alternatives to ICOs. Of course, IEO’s are the advanced form of ICOs, where all the operations here are exchange-specific.
This means that the IEO’s operate under exchange and thus they act as the better version of ICOs. Here, the exchange administers the overall aspects of the IEO campaign thus acting as a central control authority. With this, the trend of IEO’s was found to surpass ICOs thus occupying the entire market of ICOs.
Come; let us have a detailed insight into the concept of IEO in this blog…
How IEO’s evolved with a rising scope for fundraising?
“IEO’s offer an attempt to raise funds for a new project with ease”
Initial Exchange Offerings are a relatively new concept in the world of crowdfunding. Yet, they have better scope for the present and future as well in terms of raising funds. The reason here is that they have some tangible benefits than any other similar business models.
Let us take the below statistics for instance:
In the past year (2019), the market for ICOs slept down for around 97% due to a lot of scam issues raised so far with ICOs in the industry. With that, fundraising was ultimately a challenge for the entrepreneurs and this is where the IEO’s came in to fill the existing gap. Yes! Initial exchange offerings emerged as the perfect solutions to sort out all the inconveniences brought by ICOs to both the entrepreneurs and the investors, thus boosting up the fundraising potential.
Later as time goes on, Initial exchange offerings have gained huge traction and thus now seeming to overcome ICOs in terms of generating ample profit. As per the recent statistical report, IEO’s have raised a profit of around 40 million US Dollars by this year alone. This is really awesome right! Well; thus IEO’s are now obviously the better trend for raising funds.
How IEO’s are better than ICOs?
The following are some of the criteria that have made IEO’s dominant over ICOs in the crowdfunding business space over the recent past:
- Free of investment risks, as exchange takes up the complete responsibility of the overall activities to be done to raise funds.
- No chances for asset locks resulting in the transfer of funds to the wrong user wallets since the transfers here happen in front of an exchange.
- Security for asset transfers; the Initial exchange offerings are extremely secure in comparison with the ICOs as they operate under a centralized exchange, which will take care of the fund protection.
- Trust-worthy web interface for the users to make transactions via the exchanges they integrate for their operations.
- Reputation together with the easier user engagement strategies which help in building an ultimate degree of trust among the users’ side.
How IEO’s operate?
IEO’s being the token sale events organized by the crypto community operate on the basis of complex cryptographic functions including the public and private key algorithms. Investors are about to hold their participation in the token issuance program (IEO) via an exclusive trading marketplace, where all the events in accordance with the token sale happen.
Stages in an IEO:
An IEO project involves the following four stages:
- Planning stage: In this stage, the preparation for the entire IEO project takes place. Here, the cryptocurrency startup which is in need of raising funds has to sketch a valid idea and check for its feasibility. Moreover, market research is needed as well here. Besides, budget planning should be made to come up with a better scope. Once all such plans are made, it’s actually the time to gain investors for the project by partnering with a talented team.
Thus this stage works well in making the project get listings on some of the top and reputed exchanges.
- Pre-IEO stage: This stage is to make a pitch for the IEO project via the selection of a viable exchange. But here, we need to be careful about the terms and conditions (norms) of the selective exchange before going to on-board it for the IEO project.
Once the exchange selection is over, a whitepaper document needs to be crafted to propose the project idea to the community of investors. The document should explain all the necessary data for the investors to hold on to the project in a long run. This is where the real challenge lies.
- IEO stage: This stage involves the development of unique tokens for the project. Here, we need to make sure whether our budget is about to meet the necessary technical requirements perfectly with no deviations or not. Also, we have to make the investors aware of how the project is going to achieve its targeted scope in the short time span, so that the investors will hold trust in our project thus investing a lot more for it.
- Post-IEO stage: This stage involves the listing of IEO tokens in the selected exchange. Yes to make it happen, we need to undergo the necessary verification checks like KYC and AML imposed by the exchange platform. Once we pass those checks successfully, the exchange will accept and adopt the overall project idea and list the tokens for sale to happen inevitably.
In addition, the marketing part comes under this stage, where a lot of promotion via social media and some other sources are done to outreach the project to the global audience.
Advantages of launching your own IEO:
- Fundraising: This is the primary use case when it comes to the launch of an IEO. It is taken care of exclusively by the exchange, where a lot of effort and favor is made to bring the investors’ attention towards the IEO project.
The exchange is meant for the activities right from promotion to fundraising, and it lets the startup gains access to the resulting funds, once the IEO gets over. Then you may think that what benefit would the exchange is about to reap… It is certainly the commission and the listing charges left for the exchange to get in return.
- Enhanced user base: Getting a wide user base is what that can be made happen with IEO’s with ease. Yes, launching an IEO can help us in getting a global audience group for our business enhancement strategies. This is why a lot of entrepreneurs today have been showing immense interest in launching an IEO.
As the startups have no reputation and access to funds at the start of the project, the exchange helps in obtaining them via the reputation that it has built so far in the business space.
- Investor verification: Verification is a must for the startups to get trusted investors for the project and to ensure its long-term survival in the industry with no hassles. Here is where the services of the exchange come in the form of KYC and AML. Yes, the startup can make use of the verification procedures followed in the exchange to get done with its investors’ verification processes.
- Listing: Token listing will be getting easier with the intrusion of exchange; the exchange would take the complete responsibility of listing the project’s tokens in well-organized and familiar listing sites available.
Necessary considerations for IEO launch:
- Building up a reliable team
- Getting ready with an MVP or a prototype for IEO operation
- Creating tie-ups with the best exchanges in the market.
- Meeting the basic regulatory standards
- Crafting up a comprehensive white paper
- Developing scope-rich tokens
- Establishing clear project funding goals
- Listing tokens in sites
- Performing promotional activities.
At shamla Tech, we are here to assist you with all the above-said considerations to come up with a greater amount of funds ever for your business.
Summing up the concept:
Thus it has now been clarified that the Initial Exchange Offerings are the most trusted fundraising business model ever. Yet, before going to engage yourself into an IEO project, it is very much essential that you have to make a detailed analysis of the scope of the token you choose to purchase to avoid discrepancies or fund losses in the future.
If you find anything difficult in relation to this IEO development, you can get help from our side. As an extensive Initial exchange offering Development Company, Shamla tech excels in the development of a wide variety of blockchain-based IEO solutions. Our team holds a vast range of expertise in providing custom IEO development and IEO marketing services to clients all across the Globe. We can provide you the best according to your varying business needs so that you can launch IEO exchange of your own in a flawless way with us.
