With the rise of crypto entrepreneur success in the blockchain industry, more startups need help with IEO development. After all, raising funds to run crypto projects has become essential. Since most investors prefer using initial exchange offerings (IEOs), it’s essential to learn how they work. Here’s why you need this model: Firstly, investors are more open to it, and secondly, it promises a bigger size of investment than other options
Why invest in IEO development
For the past several years, there has been a drastic change in the crypto market; you can call it an evolution. Initially, the crypto market started simply as a bitcoin venture. However, it has now branched into a vast market with multiple digital tokens. Both investors and crypto developers are constantly astonished by the massive success in the crypto market. As such, many people have turned their investments towards the crypto marketplace to scoop a share of the spoils.
This is how the likes of ICOs popped up and took over the typical capital venture models. However, as time went by, investors discovered that fraudulent cases were becoming common among ICOs. Many more allegations came to light, with proof that damaged the reputation of ICOs. The biggest hit to the ICO model occurred when China decided to ban it in 2017. Nevertheless, this ban paved the way for a new model to come to light.
The Initial Exchange Offering (IEO) emerged shortly after this. Since then, IEOs vs ICO comparisons have become common. As investors were trying to decide which option is better, they embraced the latter for their investments.
What’s an IEO?
An Initial Exchange Offering is a virtual technique of raising funds via crypto exchange platforms. In order to run an IEO, the exchange platform conducts the sale for the crypto-startup that needs funding. For example, Binance Echange conducted IEO on behalf of BitTorrent when it was a startup. They attained the cap limit within the first 15 minutes.
If you’re a crypto developer and don’t know how to raise funds using an IEO, you’re in the right place.
IEO development vs crowdfunding
Crowdfunding refers to a fundraising model that raises money to fund a project from a large group of people. In some situations, the people who fund the project receive equity or rewards from the company. These rewards are offered in exchange for their contribution. To do your crowdfunding, you can work with the likes of Patreon, IndieGoGo, GoFundMe, and Kickstarter.
On the other hand, an IEO is a type of crowdfunding that is run via blockchain. The crypto exchange serves as the crowdfunding platform where startups raise funds by issuing tokens to the investors in exchange for their contributions. However, rather than the startups handling the process directly, the exchange platform oversees it.
Thus, IEOs provide the startup with opportunities to raise project funds or capital by issuing utility tokens via the exchange. Investors can also enjoy protection for their investment thanks to the IEO model. That’s because IEOs undergo screening by the crypto exchange, hence protecting investors from risky token investments.
Initial Exchange Offering Vs Initial Coin Offering
In an IEO, the crypto exchange runs the entire operation. In other words, they raise the project funds on behalf of the startup. Basically, the crypto exchange is the main platform where token sales take place. Selling your tokens involves issuing a given amount to investors who then pay for it with crypto or fiat currency.
On the other hand, Initial Coin Offering ICO uses the same approach as the IEO model. However, the difference is apparent when running the sale. As opposed to the IEO, initial coin offering (ICO) allows the crypto project to run the entire fundraising operation.
When you enroll an IEO as your fundraising model, there are more benefits besides reaching the cap limit. For instance, the crypto exchange company lists you, supporting your marketing efforts. Additionally, you’ll benefit from investor verification that improves the credibility and reputation of your company. Furthermore, the IEO exchange platform also runs smart contracts to guarantee the safety of both the investors and startups.
An IEO allows you to tap into an existing user base with prospective investors. As such, you’ll benefit from guaranteed funds if you have a potent project. Moreover, it saves you from the frustration of conducting or investing in marketing.
As you know, marketing a startup from scratch can cost a fortune. Besides, the exchange platform also improves the visibility of your company among investors. Investors on the other hand also benefit from liquidity. That’s because the exchange platform will list their tokens.
What’s an IDO?
IDO is an acronym for Initial Dex Offering. While this fundraising model is still new, it’s taking over the marketplace progressively. IDO involves fundraising for your crypto-project by issuing tokens via DEX (decentralized liquidity exchange). Some examples of DEX companies include Bancor and Uniswap, among others.
Since an IDO utilizes an exchange platform, it’s similar to IEO. However, the contrast between the two is that the IDO model leverages a decentralized exchange. On the other hand, an IEO uses a centralized exchange.
Centralized exchanges are more expensive since they charge hefty fees. However, you can spend less when you use a DEX. What’s more, their protocols have fewer restrictions allowing investors to purchase tokens with ease.
Do you need IEO marketing?
Yes, IEO marketing is essential. It’s also a continuous process that demands persistent updates whenever there’s a new marketing trend. Thanks to all these measures, you can attain maximum project exposure. On that note, here are several ways you can jumpstart your campaign from scratch:
1) Do PR for your IEO
Employing traditional media will also help your business climb the crypto market ladder. They’ll help you connect with investors who still rely on typical media to track crypto trends before investing. Additionally, journalists and media outlets will help with creating brand awareness.
By doing PR for your IEO, you can launch press releases to announce the launch or important development in your project. Moreover, you can use traditional media to address a crisis that could negatively affect brand reputation. Therefore, typical media still plays an essential role in IEO campaigns.
PR services can also add more value to your IEO campaign when you choose the right professionals. PR specialists like those at Pressfarm will provide a target campaign strategy to ensure you can exceed the cap limit. These strategies will continue to generate results even at the end of the IEO launch.
Thanks to the community you build, your business will benefit from a lasting impact thanks to the relevant community you’ll create. Additionally, you’ll be able to forge relationships with relevant media, influencers, and exchange platforms by working with them.
2) List your project on more than one exchange
Running an IEO requires you to list your project or startup with a particular exchange. As easy as this sounds, there’s more to exchange platforms than just selling your tokens. These platforms have an established community of crypto followers.
Therefore, if you play your cards right, you might sway some of them to back your project. However, not all exchange platforms have a substantial following. These exchanges should be your last resort. Your main focus should be those with an established following. And they include Huobi, Okex, and Binance, among others.
The more influential an exchange is, the higher your chance of surpassing the cap limit. Moreover, they’ll help your brand build a positive reputation and earn investor trust.
3) Invest in influencer marketing
Influencer marketing can add a lot of value to your startup or project. The most integral benefit of all is promoting your products to the relevant investors. By working with an influencer, you can free yourself from the burden of chasing crypto investors online. Instead, the influencer can connect you with a community that has countless prospective investors ready to take advantage of your offer.
Influencers are experts in their niche. Therefore, they’ll help break down your project for the target audience to understand well using informative content. With various types of influencers available, from social platforms to forums, you can work with influencers of different types for more exposure.
Working with influencers is crucial while campaigning for an IEO, before launching it and even after that. With their help, you can establish a niche community, and develop a supportive following for your startup.
4) Run social media campaigns
Social media doesn’t disappoint, especially if you’re running a startup. A good social media outreach strategy will give your business the nudge it needs to start and secure a position in the crypto marketplace. Furthermore, it offers the best strategy if you’re building a crypto community. The same avenues are best for sharing informative content with your followers and prospects.
Social media platforms are also the right place to update people on how far you’ve gotten with your project and any new changes coming up. Social media is actually among the few platforms that give you access to the global crypto community. Tapping into that community and marketplace provides you with an endless supply of prospective investors and consumers.
5) Develop a highly optimized site
Your business site plays a crucial role in your crypto venture. Since this is the primary place where prospective investors can interact with your project directly, presentation is important. You need a site that creates a wonderful impression about your project and the developers behind it. Depending on the impression you create, you can lose or gain the trust of your target investors.
Additionally, a striking website will draw the attention of important crypto communities you want to tap into. At the same time, it will help you create a community with members who are genuinely interested in your project.
IEO advertisement: What is it?
Advertising for an IEO involves working on an effective data-driven marketing approach that is personalized for crypto communities. The objective of this campaign is to bring about brand awareness, boost token sales and drive traffic. When you launch an IEO advertisement, your ads will pop up on various platforms like Twitter, Google, and crypto sites.
You can also sponsor ads that link to your business site. When target clients click to view, they’ll be directed to your project home page on the exchange platform. With this marketing technique, your business will benefit from the crypto exchange authority where your IEO took place.
How Pressfarm can help
Pressfarm has a positive track record for delivering winning PR strategies for blockchain projects. They can develop a curated approach to further your IEO marketing campaign for the best results. This includes using strategies like e-mail pitching, guest posts, press releases, and press kits, among others. Further, the PR specialists at this agency keep their ears to the ground so they can advise you on what’s likely to work based on changing trends.
Through their experience working with crypto developers who are launching IEOs, they’ll ensure your startup is listed on a top exchange platform. As such, your project will surpass the cap limit faster and also gainnbrand exposure.
Benefits of launching an IEO
There are countless benefits of using an IEO for your crypto project instead of alternative fundraising models. And here are the notable ones:
- Trust-ability: this model guarantees trustworthiness. Therefore, both investors and startup owners will feel comfortable with the transactions.
- Smart contract: the system employs the safest mechanism that guarantees the safety of the process.
- Token listing: the exchange platform will list your tokens enhancing your visibility in the public domain.
- Vast user base: this platform has a vast number of crypto followers who create a potential marketplace to target.
Over to you
Finally, with the info in this blog, you can launch your IEO development and raise capital for your project. If you can implement each tip successfully, then you’ll be good to go. However, if you need expert help in any of the steps, you should reach out to Pressfarm. You can also contact them if you want to consult on IEO development or PR services.