The soaring popularity of DEX offerings as a fundraising model has brought about the need for IDO marketing. With so many crypto projects leveraging this model to generate funds for their venture, competition is stiff. Just a few years back, the ICO model was the most popular. In fact, many crypto developers who leveraged this approach became overnight millionaires. However, that has since changed. With the IDO model, you’ve got a higher chance of achieving your crypto goals.
Why the IDO is the ultimate fundraising model
The value of cryptocurrency is soaring at an unprecedented rate. To put this into context, there are more than 10,000 cryptocurrencies in the world as we speak. In time, this creates various opportunities in the crypto space for investors.
The standard of the marketplace is upheld by originality and innovation in the space. However, do you know how these companies promote their startups and gain traffic? If you can’t tell, we’ve got answers for you. You’ll probably need these answers when you’re launching your IDO. As with other financial models, you can be successful with your IDO by deploying ideal and strategic campaigns.
In this article, we’ve compiled a guide on how to launch a successful IDO. More specifically, we’ll share marketing techniques that can pique the attention of target users.
What’s an IDO?
An IDO or Initial Dex Offering refers to a modern fundraising model in the crypto space. Unlike its counterparts, the IDO provides liquidity that crypto-entrepreneur can benefit from. As a fundraising model, an IDO is quite similar to an IEO, and the main difference is in the exchange used. The IDO model is based on a decentralized exchange while the IEO is based on a centralized exchange.
A decentralized exchange is very secure because it doesn’t have room for a third party. It supports peer-to-peer transactions between traders, making the process more secure. With this exchange, people can trade coins directly.
To launch a token on an IDO, you’ll need a decentralized exchange. These include the likes of Sushiswap, PancakeSwap, and Uniswap. The control of the funds remains under the developers and investors of the token or project with an IDO.
You also get to save more with an IDO because you’re not charged a listing fee. Thus, it’s a cost-effective fundraising model. Binance DEX was the first to run an IDO. It’s also known as the Raven Protocol. Thereafter, other crypto companies followed the same trend with their tokens. The popular ones include Balancer, UMA protocol, and Compound.
The contrast between IDO, IEO & ICO
The major contrast between IDO, IEO, and ICO is based on their method of token launch. For starters, ICO (Initial Coin Offering) is similar to IPO (Initial Public Offering). However, the issuers of ICOs are responsible for the entire event. In the IEO model, a fundraising event is different. In this case, the centralized exchange runs the entire event for the project.
When it comes to a security token offering (STO), the investment contract gets fueled by security. Furthermore, assets on STO come with monetary profits. As such, they must be in line with government regulations.
On the other hand, IDOs employ the same concept as IEOs. In both models, the project can offer its tokens or coins to traders and investors directly. The contrast comes about in the listing fee. With an IDO, you can list your project free on the exchange due to the absence of intermediaries. In this case, the IEO has intermediaries; therefore, you must pay a given amount as a listing fee.
IDOs also provide solutions to common challenges you’ll face with the IEO model. For instance, with an IEO, you cannot list your tokens with a rival exchange. Additionally, under the IEO model, you lose complete control over important elements affecting your project fundraising.
Token Generation Event (TGE): What is it?
This is a token minting process in a crypto company for generating funds. Since these tokens represent tiny parts that constitute the product, developers would refer to their sale as a TGE. It’s also a replacement for the term Initial Coin Offering (ICO).
Over time, there has been soaring pressure from traditional finance regulatory authorities. They’re considering listing Initial Coin Offering among the securities, making it liable to taxation. On the other hand, a TGE doesn’t qualify as a security. As such, they are exempted from taxation. Therefore, you’re free from tax penalties when you use the TGE model for fundraising.
IDO crypto & DeFi trends
Undoubtedly, the IDO model brings relief to many creators and crypto investors. It offers solutions to some of the major challenges you’ll face with ICOs and IEOs. It’s important to note that the IDO rules out the need to get authorization from the exchanges before running a fundraising occasion. That’s an important benefit that you won’t find on IEOs. On the other hand, it provides scammers with a loophole to exploit. Moreover, price movements can affect the project when they occur instantly.
Despite these challenges, DeFi is here to last. The IDO model marks a new phase in crowdfunding for crypto. Henceforth, projects that need to run an IDO with regulations can incorporate KYC capabilities. Thanks to KYC capabilities, issuers will have more control over their buyers and the number of tokens they can acquire.
Furthermore, creators can also prevent price variations that often affect projects negatively. They can now set a fixed token price from the initial launch to the end of fundraising. Doing that will fix this issue.
Another impressive characteristic is the ease of getting listed on exchanges. Unlike centralized exchanges, DEX platforms have no stringent measures when it comes to listing. Even better, they don’t charge you a listing fee. As such, you’ve got vast options when it comes to listing your project as a startup. This also creates favorable conditions for startups since they rarely have a big budget that can afford a major exchange.
IDO campaign strategies
If your project is ready for an IDO, then you’ll need robust strategies specific to this fundraising model. When you launch a successful IDO marketing strategy, the outcome will be explosive traffic and a successful event. Promoting an IDO is also ideal for long-term benefits. For instance, you’ll create a supportive crypto community that will continuously back your project after the IDO event.
The following are the top IDO campaign strategies you can use to sponsor your tokens in the marketplace:
1) Content marketing & SEO
Content marketing helps build a significant traffic flow to your site. However, this is more effective when you combine it with search engine optimization. Through SEO practices, a website has the chance to rank among the top three results during a search. If your project website features among the top three results after a search, it gains more visibility.
Additionally, some users see the top three sites during a search as an authority in that particular industry or niche. Therefore, you stand to gain new users and a better reputation with content marketing and SEO.
2) Airdrops
Most successful crypto marketing campaigns use airdrops, and with good reason. This strategy has an impressive capacity to capture user attention. With incentives, every user will be intrigued to know what’s on offer. As a result, a site can get significant traffic. When you’re doing IDO marketing, free tokens are always the best incentives, especially if your project has noticeable potential.
3) Media and public relations
Media and public relations don’t disappoint in building traffic, gaining reputation, and achieving a successful IDO event. For starters, media outreach gives you access to a significant number of readers who are looking for crypto news and content. Therefore, it allows you to communicate with a crowd of crypto enthusiasts.
On the other hand, PR doubles as a marketing and reputation management tool. It allows you to develop credibility while still promoting your product or project. Even better, it doesn’t require huge sums of money.
4) DeFi trackers
You can boost your IDO event by getting mentioned in DeFi dedicated sites and networks. These platforms include DeFi trackers, ratings, and listings. They’ll present your project to potential clients and investors.
5) Social media
Succeeding in social media campaigns requires you to leverage the power of a supportive community. Therefore, building a community is an essential element of social media marketing. Thereafter, you can promote engagement. When you have an active community, it’s easier to market your project widely.
Among your community members, you’ll find investors to sponsor your project by buying your tokens during an IDO event. There are several popular platforms you can use to promote your IDO project. They include Twitter, Facebook, LinkedIn, Instagram, and Telegram, among others.
6) Influencer marketing
Your businesses can benefit from immense traffic acquired from influencer marketing. This strategy is common in the crypto space. By partnering with influencers, you can ensure your crypto project benefits in several ways. First, it can get sufficient traffic that comprises investors and interested users. Secondly, influencer marketing can help you build brand awareness. After all, influencers in the crypto space often have thousands of followers.
Therefore, working with these influencers enables your project to get discovered by prospects. Finally, an influencer has a significant level of authority over their following. When they position your project in a positive light, you gain the trust of their audience.
Why it’s important to partner with an IDO marketing agency
Whatever kind of IDO you are running, having a well-orchestrated marketing plan is essential. In fact, a marketing plan marks the difference between a successful IDO and one that’s bound to fail. Many project developers know this, so they’re happy to invest in marketing.
However, the major challenge is how to implement your IDO marketing. Having a list of robust marketing strategies doesn’t guarantee your campaign will be successful. After all, the effectiveness of these strategies comes in during implementation.
An IDO marketing agency like Pressfarm will collaborate with you to deploy the best IDO strategies for your project. They are experts in determining the most efficient marketing techniques for the DeFi industry. As such, they’ll review your project and offer the best campaign strategies in the market.
You need to promote your project within the crypto community. Across the world, you’ll find dozens of crypto communities with the target investors you are looking for. With the right agency, you can explore these communities and generate massive traffic for your venture. Therefore, you should choose an agency that can promote your project in these communities.
Additionally, most IDO marketing agencies have a team of marketing experts. They can run token advertisements including IDOs. Furthermore, they have specialists in content marketing and SEO who are ready to serve you. With their expertise, your site will receive qualified traffic and leads.
What Pressfarm can do
Pressfarm is a PR agency that has experience working with crypto projects to create quality content that these projects can publish on their owned channels and distribute to media professionals within their niche. Using relevant information that you submit when you sign up, the team at Pressfarm can create professional press releases, fascinating guest posts, and branded media kits for you.
In addition to creating this content, the experts at Pressfarm can distribute this content widely. By sharing this content with the right media outlets, startup directories, and professional networks, the Pressfarm team can boost your online visibility. The goal of this distribution strategy is to make it easier for members of your target audience to find you through organic searches on various search engines, including Google, Yahoo, and Bing!
You can also use custom media lists built by Pressfarm’s account executive to connect with the best crypto journalists. Combined with a database of 1 million+ journalists, bloggers, and influencers, these media lists can help you to keep doing media outreach long after Pressfarm has run your PR campaign.
If you’re a crypto brand, then partnering with a PR agency that has a track record of success with crypto products can make all the difference. One of Pressfarm’s PR packages could be just the right thing for you.
With Pressfarm’s help, you can perform optimally in other critical areas of your project that need your attention.
Start preparing for your IDO launch today
It’s almost impossible to achieve success without marketing in the crypto space, a notion that also applies to IDO. Just implement the above IDO crypto marketing techniques, and your project will have a chance in the crypto market. You can also build ties with crypto news networks, journalists, and blogs. With their wide coverage, you can reach a lot of users. Additionally, press releases can boost visibility and awareness of your venture.
Contrary to what many people believe, buying followers in massive numbers doesn’t help with building trust. Instead, you’ve got to earn trust through positive mentions in cryptocurrency media outlets. It also helps to reach out to more spaces with crypto communities. The more your projects get mentioned, the better their reputation gets.
By leveraging several sure-fire marketing strategies, you’ll build more awareness among your audiences. Moreover, the more the audiences learn about your IDO project, the more trust they’ll have in it. Therefore, leveraging tried and trusted PR strategies is vital for a successful project.