Steps to Launch an Initial Exchange Offering (IEO) Successfully


In recent years, the cryptocurrency market has evolved a lot. What was once just about bitcoins has now become the market for various digital tokens. Several entrepreneurs and traditional investors were amazed by the enormous success of cryptocurrencies and turned to invest their money in this market in the hope of obtaining maximum profits.

This is when people started choosing ICOs over traditional venture capital models.

However, over time, ICOs have been found to be involved in fraudulent cases. In fact, according to a Investopedia report, 80% of ICO sales turn out to be scams with around $9 million of losses daily. Many regulations also came to light which ruined the popularity of ICO funds.

But after China banned ICOs in 2017, the business model changed completely. A new model called IEO emerged, eventually causing everyone to investigate Comparison of ICO vs IEO and use the latter on traditional ICO model to raise funds for your blockchain startups.

So what is IEO? Well, an initial exchange offering (IEO) is a method of raising funds where the funding is done on cryptocurrency exchanges, so that the cryptocurrency exchange manages the sale on behalf of the startups seeking funding. For example, BitTorrent launched its IEO on the Binance Exchange Platform and hit the limit in less than 15 minutes.

In the middle of this, if you are an Entrepreneur wondering how to launch an iinitial exchange offering (IEO) that generates higher income for your blockchain business, you are in the right place.

So, without further ado, let’s get started!

Steps to launch an IEO

1. Have a trusted team

The most important step that acts as a foundation for the successful launch of your IEO guide is the team that supports your project.

A team with proficient knowledge of the initial exchange offering and the blockchain environment can help you create and validate your project idea effectively. They can also make investors show more interest in your IEO. crypto project as they prefer blockchain projects that are backed by a team. While on the other hand, you could end up facing failure.

Therefore, it is imperative that you look for the best blockchain development companies and make sure they stay by your side throughout the entire process.

2. Have an MVP/Prototype

The Next Major Step Toward Launching Your IEO model – the one you have come up with when doing market research – is to create a MVP or Prototype.This is so because a working prototype for OEI or a most valuable player It can make it much easier for investors to understand your idea, determine its validity, and be convinced to fund more than any written description.

know here how to build mvp that raises money

3. Get soaked with the best exchanges

Another step to implement when it comes to how to launch an IEO mModel is connecting with the right exchange.

The exchange you choose for your IEO crypto The project can make a big difference to the success rate, as long as they manage the entire process on your behalf, promote token sales, and more. In addition, each exchange requires a listing fee and a commission on the fund raised, the value of which varies from exchange to exchange. Also, some centralized exchanges are prone to glitches and cyber attacks.

Therefore, it is imperative that an entrepreneur choose the right exchange to launch their IEO among the many options available in the market, some of which are the following:

ieo exchange platform

4. Check the legal regulations

Having knowledge of the associated legal regulations is again necessary to avoid any obstacles in the IEO. crypto launch process. This is because most of the popular IEO exchanges require legal checks to ensure that your token is a utility token. Also, various exchanges. for OEI follow different processes and requirements;, making you turn to your legal advisor to understand and determine the status of your token.

5. Create a detailed white paper

Writing a white paper is also one of the highlights stages of the OEI launch process.

A technical document, in simple terms, is a complete document that explains all aspects of your project. That is, it covers everything from the objective of your IEO crypto project for market analysis, development strategy, token information, etc. This ieo white paper helps with the requirements investors get clarity on their long-term project and make a decision in their favor.

This document, when crafted with a focus on tips to consider when writing a white paper, can act as your sales pitch and add value to your business. So, get ready to craft a perfect whitepaper for your IEO. crypto draft.

6. Invest in token development

This is the most important step in the process of launching an IEO. cryptoas the tokens you create will be listed on exchanges and investors will buy them in exchange for funds.

When talking about investing in token development, it is advisable to be clear in terms of how many tokens you want to issue and the associated value. how to choose a blockchain platform, and more. So approach this step wisely.

contact our blockchain experts

7. Set a clear funding goal

Another thing to keep in mind when launching an IEO crypto is to have a clear funding objective. when you don’t have to clear funding goal, you will find it difficult to determine how many of the tokens need to be entered into IEO sales before being listed on the exchange to get the right results. It also prevents you from falling into a scam.

Furthermore, the clarity of the budget required to launch an IEO crypto it gives the impression that you are focusing on a practical goal, which makes investors show more interest in funding your blockchain project.

So talk to your partners and come up with a clear funding goal.

8. Make a list of your chips

The next The step entrepreneurs need to focus on is listing their tokens in the initial exchange offering (IEO) exchange platforms.

Each exchange platform comes with certain rules and factors that must be met in order to list your token and pass the selection criteria for the sale process. So, look ahead to follow this step of the OEI release process carefully.

9. Promote widely

Although crypto exchanges promote IEO project, it may not be enough for your blockchain project to succeed. Therefore, it is advisable for startups to bring their team on board and discuss different ways of market an IEO projectsome of which are:

ieo marketing methods

Reasons why entrepreneurs are focusing on launching IEOs

Now that you know what an Initial Exchange Offering is and the steps to launch one, let’s move on to the reasons entrepreneurs are focusing on launching IEOs:

ieo-launch-benefits

1. Fundraising Ecosystem

The main benefit of IEO is that here the fundraising process is governed by the exchanges. Entrepreneurs do not need to try harder to attract more investors to the platform and encourage them to do a favor. The exchange handles everything from promotion to using IEOs to raise funds, and allows startups to access the amount after the IEO ends. All in exchange for a listing fee and a commission on token sales.

2. Larger user base

Another reason why entrepreneurs are embracing the idea of ​​initial exchange offering development and launch is that each and every exchange trading platform has millions of users who are actively involved in token sales. So even if you’re not familiar with a wide range of investors, an IEO will provide you with quick and easy access to financing.

3. Verification of investors

not like others blockchain financing models Where startups have to verify investors, this task is done by exchanges in the case of IEOs. Here, the associated crypto exchange carries out KYC/AML to make sure you don’t end up wasting your time partnering with legal companies to get the verification process done effectively.

4. Reliability

Here, the exchange not only verifies investors but also verifies the credibility of token issuers before launching an IEO on its platform. This makes it easier for investors and startups to build trust in the relationship, rather than ponder ways to be sure of each other’s authenticity.

5. Smart contract management

In the case of ICOs and other methods of raising funds in the blockchain space, smart contracts they are managed by token issuers, i.e. startups. But, in the case of IEOs, they are managed by exchanges that do the token sale. This gives entrepreneurs the opportunity to focus on other important activities without suffering at any time.

6. List of chips

Last but not least, IEO also makes it easy for startups and others to list their tokens efficiently. Which implies that token issuers do not need to comply with different fundraising regulations to approach a reputable exchange and list their token. The process starts from this same step in the case of the IEO.

Final note

We hope this blog has been helpful in explaining what ieo is and explaining the steps to successfully launch IEO. In case you have any queries or want to outsource all IEO development solutions and services of an experienced IEO agency, we at Appinventiv will be more than happy to help you with the initial exchange offering listing steps and more. Solve your doubts by a professional.


chirag

THE AUTHOR

chirag

Blockchain Evangelist