Initial exchange offerings (IEOs) are the medium for fundraising for blockchain projects. IEO is a crypto exchange platform where the exchanges of crypto tokens take place. IEO serves as an intermediary to decentralized fundraising mechanisms.
IEO has many positive and healthy outcomes for crypto traders compared to ICO (Initial coin offerings). In recent times ICO has lost its credibility, hence IEO successfully achieved its market value.
IEO is regarded as a safe and secure platform. After many fraudulent cases in ICO, ICO sacrificed its trust. Now crypto investors are eagerly joining IEO for launching their crypto token in an IEO platform for fundraising.
How do an IEO works?
This is a significant question that needs to explain as explained before, IEO is used for fundraising. It has a straight yet so easy working procedure. It is a blockchain-based technique used for accumulating capital for crypto projects.
Let’s see how a project is launched in IEO, and it will help us know how IEO works. Below given points will certainly give you a great insight into how an IEO works.
- First of all, a project owner needs to have a clear idea about his project.
- In a second step, the project owner needs to create a token supporting his projects’ idea. E.g., music albums, video games, or anything that is facilitated by blockchain.
- Moving ahead, the third step includes teaming up. Once you are done with the above two parts, you require a great team to perform further functions. Try to gather blockchain experts in your team for smart analysis.
- Now it’s time for registering your project on the IEO platform. Convince the suitable Exchange platform to host your project. E.g. Binance Launchpad, Huobi Prime, ProBit, Kuoin, Ok Jumpstart. These are some crypto exchanges that are IEO-based.
You will be able to get listed after paying a few dollars to the IEO platform and by full filling in other basic credentials required by the IEO platform.
- Furthermore, start selling your crypto token on your IEO platform at your desired price.
- Market your token; publicize it to reach a large audience on the exchange forum. For this purpose, you can run social media campaigns as well.
- More reach to the project; gathers more investors to buy your token. This helps to collect huge capital for the project.
Positive aspects of IEOs:
- IEO is effective for both crypto owners and investors. If the project in IEO gets successful, an increase in token price will take place. So investors can get more profit by selling their purchased token at the double the price.
- IEOs are safe and secure crowdfunding platforms as compared to ICO
Negative aspects of IEOs:
- There arestrict rules for a new project to get listed in IEO.
- IEO requires enough budget to list in IEOs.
IEO gives authentic and trusted crypto creators an inclusive opportunity to trade their crypto tokens and collect money. IEO has a strict policy, which can be a positive aspect in the sense it eliminates the chances of fraud to new investors. The chance of project success depends on the audience reach and the project’s credibility itself. Investors will freely invest in a new project if they detect good outcomes about that specific project.