Exclusive: What are the 7 Keys to Assess IEO Projects?

By Matthew Lam   Jun 11, 2019 3 Min Read

Exclusive interview with Andy Cheung: Part 1

IEO is undoubtedly the future direction for crypto exchanges in 2019, with 42 ended IEOs raising $266 mn to date. When all crypto exchanges launch their own IEO listing platform, the screening criteria becomes the key consideration in deciding the IEO venue for project teams.

We have the pleasure to speak with Andy Cheung, Head of Operations at OKEx to share with us how OKEx screens IEO applications with its COMPASS Model, an evaluation model with 7 major screening criteria and 105 factors!

We know that OKEx launched Jumpstart platform for Initial Exchange Offerings (IEO). Is IEO the future direction of OKEx instead of security token offerings (STO)?

With an aim of helping quality blockchain projects go public and get listed in a liquid and world-class market, OK Jumpstart helps fuel the growth of the blockchain market and ecosystem healthily. This is the focus for now and will stay for a while.

What is the screening process for projects listed on the OK jumpstart platform?

The initial exchange offering (IEO) model poses a heavy reliance on the due diligence of the exchange to ensure the quality of token sales. OK Jumpstart team has spent tremendous efforts on perfecting our assessment model — the COMPASS model.

Combining the traditional evaluation model in the venture capital market and the characteristics of the blockchain industry, the COMPASS model is designed to comprehensively assess the potential growth of candidate projects in seven major aspects: creativity, operational competence, marketing competence, progress, activeness of community, sustainability, as well as scalability, with 105 factors evaluated.

An outstanding project needs to demonstrate not only solid capabilities in technology development, but also acumen in marketing and community management, which makes sure the project will be able to acquire a sufficient user base and reward successful token sale subscribers in the future.

OKJumpstart COMPASS modelcompressed.jpg

OK Jumpstart COMPASS Assessment Model
Image credit: OKEx

How do you compare OK Jumpstart platform against competitors such as Huobi Prime, Binance Launchpad and Bittrex?

We uphold the values of co-existence and co-prosperity in the blockchain space, hence we are all here to help quality blockchain projects go public and get listed in a liquid and world-class market. Projects launched on OK Jumpstart will be listed on our spot market, and those with outstanding performance will even stand a chance to be listed on our C2C and derivatives markets. With different market players holding the same passion, we believe this is the way to let the community be heard. We are the people who believe in the blockchain-empowered future and we will never stop innovating to make it happen.

What is the key regulatory hurdle for OK Jumpstart to be successful in the future?

OK Jumpstart is here for an objective. Instead of regulatory hurdle, we tend to explore on how the potential projects can reach us and get heard. Projects launched on OK Jumpstart will be listed on our spot market, and those with outstanding performance will even stand a chance to be listed on our C2C and derivatives markets. That might involve different regulation boundary for the project to overcome.

Part 2 of the interview is coming up, stay tuned!





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