Key Pointers to Launch a Successful IEOBy Jun 06, 2019 4 Min Read
The latest trend that is creating waves in the cryptocurrency market is the Initial Exchange Offering. It has brought fundraising companies and investors an appreciable amount of reassurance and relief.
With IEOs attracting a lot of attention, it is a great time for companies that bank on this crowdfunding mechanism to raise funds.
Recent news on IEOs:
Bittrex is known to be one of the most secure cryptocurrency exchanges. It recently announced its IEO launch - the Standard Tokenization Protocol, an open-source standard that specifies how tokenized assets are issued and transferred while adhering to the obligatory regulations.
Bittrex has conducted quite a few IEOs that have resulted in mixed outcomes. But its international standing and wide user base make it an appealing platform for companies looking to conduct fundraisers.
How does an IEO work?
ICOs and STOs are not terms we are unfamiliar with. Now, let’s have a look at Initial Exchange Offerings and the factors that make them an entirely different entity. All three have a united goal - to raise capital, but the techniques used to achieve this goal are quite different.
Before anything else, an IEO, as its name vaguely suggests, is conducted by a cryptocurrency exchange. Unlike an ICO or an STO, the issuing company launching an IEO is liberated from the standard responsibilities because the exchange takes them up on itself.
What is the role of a cryptocurrency exchange?
It is first important to understand how much the exchange is accountable for. The following are the major responsibilities of the exchange:
- Screening of token issuing company
- Conducting the crowdsale
- Performing KYC/AML checks on users
- Marketing of tokens on platform
What’s left for the token issuing companies?
Companies that are launching their IEOs can’t really sit back and relax. There are other important tasks on hand. Are you here because you want to launch your own IEO? Then let’s have a look at the steps you have to take if you want your IEO to succeed.
- Preparing the project for verification
A cryptocurrency exchange will not conduct IEOs for just any company that approaches them. There are rigorous screening and validation tests that you have to face. If you’re looking to launch an IEO, you need to have clarity on your project. An MVP (Minimum Viable Product) will only increase your credibility, so it is always prudent to be over-prepared.
- Pick the right exchange
The exchange you choose is going to act as your partner and a poor choice will affect your fundraiser and consequently, your entire project. Make wise decisions. Look at an exchange’s past IEOs. A large user base is key to gain as much reach as possible. Not all exchanges offer the same services, so research and figure out what suits your requirements best.
- Market your project
Yes, an exchange does market your project. But, is it enough? Of course not! You are not their priority. An exchange is going to launch your IEO and a hundred others too. If you’re looking for someone who will have a good understanding of your vision and objectives, who better than yourself? Set up your own team or hire a marketing agency who can work with you in close proximity.
- Seize opportunities
The current hype on IEOs can be used to your advantage. You will not be lost in the crowd of companies if you seize opportunities to earn your company some exposure. Interviews, press releases, and newspaper articles will help your potential investors familiarize with your name. So don’t hesitate to go all out with your PR strategies.
- Crypto community
Constant engagement with the cryptocurrency community will do your company some good. Word of mouth is a powerful tool and a community can do wonders. For this purpose, make sure your team is updated on the latest market trends.
- Post-IEO marketing
Marketing doesn’t stop once the sale is completed. You have come this far and built value for your project. Now, it is crucial to maintain this status. Constantly work to implement new strategies and advances in your project to achieve relevance and perfection.
On a more general note, work hard and smart to achieve the results you are looking for. With the steady escalation in competition, the earlier you start, the better. With a powerful marketing campaign and social media presence, you can ensure that your project realizes its vision. Good luck!