Cryptocurrency Project Requirements for Conducting an IEO

The initial exchange offering, or IEO as it is mainly known, is a popular fundraising method for blockchain projects. The difference from the other well-known ICO method is that with IEOs, the actual fundraising is done by an exchange like Binance. The exchange platform sells tokens to individual users who pay directly from their exchange wallets.

the first OEI it was made by Binance in December 2017 and ended with a huge success: $30 million raised on the first day. Despite the great achievement back then, crowdfunding for cryptocurrency projects in 2019 is not doing very well compared to 2017.

So why are the latest IEOs still selling by the minute?

This year we see a definite surge in IEO popularity that resembles the boom of 2017. This is due to the fact that selling a token through an exchange platform makes it much easier for individual users to participate and earn. a part of the cake.

Of course, if a project is backed by a popular exchange, you can be more confident in its success, as exchanges have a strict evaluation method for any project that starts an IEO. All this makes it a safer investment option with less risk than normal ICOs.

So how can a cryptocurrency project qualify for an IEO?

IEOs present an excellent financing alternative for every young blockchain project. However, to qualify for that valuable exchange platform support, you need to consider the following important points:

reliable business model

This is a vital point for every new business. If investors don’t see an apparent path to success and can’t identify a suitable market fit, they won’t want to risk their precious crypto. This is the main point of your trading strategy and you should spend as many resources as you need on it.

Have a working product or at least one in development.

Most successful IEOs already have a nicely designed and functional app before they apply for crowdfunding. Essentially, this is a big positive step, however, not all of them are that far along in their development process. What is certain is that you must have at least some evident development work before contacting an exchange platform.

engaged community

No exchange will support a product that is not popular with users. This is why you need to generate significant public interest and eventually build an engaged community. The more users who are interested in your product, the more attractive it will look to exchanges.

Appropriate documentation

This step is also vital for all business sectors. Nobody believes in verbal promises. Everything must be well documented through white papers, technical documentation and economic analysis.

Presence in social networks

Today, a strong social media and public relations presence is essential to global success. Writing cryptocurrency related posts is a very good method to get attention and improve your public presence.

utility token

Having a utility token is the only way to hold an IEO at the moment. Large exchanges do not yet support security token trading as they are more complicated legally.

trusted advisors

Big exchanges will never back a project backed by an unskilled team. You need to assemble a team of experienced developers to appear trustworthy. A big advantage is attracting popular advisors to your cause.

So when you approach an exchange with your cryptocurrency project, following the steps above will definitely increase your chances of being chosen for the next IEO.