An initial exchange offering (IEO) can simply be defined as a sale of tokens conducted via an established mode of exchanging cryptocurrency. Arising from the loss of trust in initial coin offerings or ICOs, IEOs are done with the same objective but through a different conducting platform. Entrepreneurs and startups have come forward to prefer launching IEOs for crypto fundraising amid the numerous cases of fraud involving ICOs over the past few years. This led to the ICO industry losing confidence and trust among investors, pushing new companies to avoid using ICOs for fundraising.
How does a crypto IEO work?
First, a verification process is in place to avoid scams, as were rampant with ICOs. Exchange platforms first perform a series of checks before the commencement of a sale to ensure that the new digital currency in question is really what it claims to be. After all, the crypto exchange’s name is on the line if it launches an unverified IEO.
Advantages of IEOs
- Investors feel more confident
- IEO projects are more likely to run smoothly
- Initial exchange offering investors have a much more user-friendly experience
Thinking of Launching an IEO
Perhaps you want to know how to participate in an IEO. The main thing that you and your team will have to focus on at the beginning is creating and strengthening your project to attract a lot of investors. The good thing about selling your new digital currency via a third-party exchange platform is that you can leverage investors’ trust in an already established platform. You can also gain access to potential investors and users with the help of the right exchange platform.
Here’s how Parabolic Tech facilitates the IEO crypto project:
- Analyzing your idea and market scenario
- Getting your MVP ready
- Choosing an exchange platform
- Drafting a white paper
- Designing and developing your website
- Developing tokens
- Having a clear funding goal
- Listing the token on the exchange
- Post-IEO promotion
- Distribute press releases
- Utilize social media
- Blogging and SEO
- Discussing on forums