The Initial Exchange Offering (IEO) is a constantly evolving fundraising model, especially for projects looking for community engagement, marketing, and regulation. You can say it’s a natural evolution in this sector. The predecessors of IEO crypto include the likes of the Initial Coin Offering (ICO). After the IEO comes the IDO, the latest model for raising capital for crypto projects. On that note, what is an IEO? In this IEO guide, we will walk you through all about IEO.
What’s an IEO?
In the crypto industry, an IEO, or an Initial Exchange OFFERING is a better version of the infamous ICO (Initial Coin Offering). Through a crypto exchange, startups in this sector can raise funds by issuing tokens to investors. Thus, the IEO provides a platform for crypto companies to generate capital through an exchange by issuing tokens.
While the ICO was very risky and prone to all sorts of crypto frauds and scams, the IEO is different. It’s more safe, so investors can have faith in it. For starters, the fundraising platform conducts due diligence to safeguard its reputation and clients’ investments. Therefore, IEOs make for safer investments than ICOs.
In order for a token issuer to leverage the IEO model, they must factor in the fees associated with the service. Crypto exchange platforms often charge fees for hosting an event on their platform, and an IEO is no different.
It’s also worth noting the type of expenses you’ll incur on this platform. Besides the cost of listing, they’ll also get a commission from your token sales. Once the sale is complete, the exchange will list your coins or tokens for trading and marketing purposes.
Investors who want to take part in the IEO can easily do so. First, you need to visit the exchange’s official site and then purchase the tokens with the cryptocurrencies you have in your exchange wallet.
How much has been raised through IEOs so far?
Many projects have leveraged the IEO as a platform for raising funds. So far, most of them have bypassed the $1 million mark by the end of the fundraising event event. Some projects have actually been known to raise over $1 million in just seconds.
Just as the ICO peaked during its launch in 2017, 2019 was a great year for IEO projects. Collectively, about $1.67 billion has been raised so far on this platform. Here are some examples of popular projects that raised capital through IEO and how much they raised:
This is a company that deals with the development of a data management ecosystem for AI. Thanks to the IEO fundraising model, they raised $6m for their project.
This is a project that is based on blockchain and leverages the Bitcoin network. Through IEO, they managed to raise $7m for their project.
This project raised a groundbreaking $6m within 22 seconds of launching their IEO.
This was the first startup project to fundraise for capital by using IEO on Binance Launchpad. In a few minutes, they were able to acquire $7.2m through IEO crypto.
There are tons of other noteworthy crypto projects that used IEOs for fundraising. These include the likes of WINK, Perlin, Armors Labs, BlockCloud, and Gatechain Token.
Top IEO launchpads to work with
Ever wonder how investors find the best crypto projects to invest in? Well, they usually leverage IEO launchpads that enable them to identify and take part in token sales of early-stage projects. In fact, IEO launchpads play a vital role in the success of upcoming crypto projects.
They’re responsible for scrutinizing crypto companies and only allow credible ones to appear on the exchange. This is in addition to functioning as the host platform for token issuing. Furthermore, they help with the marketing of the project.
When you’re looking for the top IEO launchpad for your project, consider the following criteria:
1. Solid tech
For smooth running of the event, you need to choose a platform with solid technology in this industry. This will guarantee that the entire event is successful.
2. Multi-coin compatibility
Remember, there are different types of cryptocurrencies in the crypto space. Therefore, the investors may have different coins in their exchange wallets. To ensure you lock none of them out during the sales event, choose a multi-coin compatible platform. This will allow investors with different coins to procure your token.
3. High liquidity
In order for token sales to succeed, the platform you choose must have enormous backing or a network of investors. This is a feature you must consider critically because it determines how quickly you’ll hit the cap limit. It’s worth noting that platforms with fewer investors tend to struggle during token sales events.
4. Stability and security
The stability and security of the IEO model evoke trust among investors. These are people who want to work with something that poses no risk to their investment. Thankfully, the IEO model is generally safer compared to the ICO. However, you must still guarantee safety and stability to investors by choosing an IEO launchpad with the same attributes.
5. Ease of use
Investors are searching for a project to invest in. Oftentimes, they don’t have free time to spare. Therefore, the easier the platform is to use, the better. Complex launchpads are often tough to master and raise the question of trustworthiness. Given that not all crypto investors are tech-savvy, the last thing you want is to work with an intricate platform. The simpler the platform, the more appealing it will be to prospective investors.
Without further ado, let’s look at some of the top IEO launchpads that you should consider working with:
This platform boasts amazing results for all the IEOs that have launched here. For example, the Linux IEO held on this platform was sold out within seconds. Thereafter, they raised $300k within half an hour, and Boltt Coin was their latest success. With this project, they raised $795k after four sold-out rounds consecutively.
KuCoin Spotlight is resourceful in several ways for your project. For instance, it will help you raise the capital that your project needs. It also helps build awareness for your project in the crypto space. Lastly, it will boost your project’s industry influence. Their first IEO project was completed within seconds.
It’s not often that you find platforms offering projects access to genuine and qualified investors. Huobi Prime does just that. Before you get access to this platform, your project will undergo thorough screening. Once it qualifies as a premium project, then it will be listed on the major exchange.
Bittrex International IEO
If you’re an international user leveraging Bittrex latest technology, then this platform is right for your project. Despite the cancellation of the RAID project, this platform managed to hit the cap limit for Veriblock within 10.4 seconds.
Do you have quality crypto projects that deserve to be listed in a world-class and liquid market? Well, OKEx Jumpstart might just be the platform for you. It will help your project get optimum publicity through an Initial Exchange Offering.
Binance Launchpad is a typical option and the best pick if you want to raise funds quickly. It was the first platform to run a successful an IEO event. Over the years since its launch, many successful projects have raised millions of dollars via this platform. It also has a powerful matching engine with the ability to process over 1 million orders every second. Therefore, it will raise funds for your project quickly and efficiently.
Top marketing tips for IEOs
Taking into account IEO crowdfunding ROI and the increasing investors’ demand, experts predict that this model will grow steadily in the coming years. The projected growth is both in terms of the total funds raised and projects launched on this platform. If you were looking for a sign that you should leverage this opportunity to grow your crypto project, ths is it.
Having said that, here are top marketing tips for your IEO project:
You need product and content advocates for your crypto project. They’ll create, engage, and share content on your behalf if you offer them valuable content. You can also create quality blog posts to enlighten target investors about your project.
Through social media platforms, you can update them regularly on the progress, changes, or upcoming events. Social media is also a great place to provide additional info to your investors. Lastly, share PR articles to garner a positive reputation from the media. If you need help writing think pieces that will help your project to remain top of mind, then you should turn to expert writers such as the ones at Pressfarm. With a professional press release, some educational guest posts, and a memorable media kit – all from Pressfarm – you can make a positive impression and earn credibility in the industry.
Generate engagement within communities with quality content that educates prospects about your IEO project. To sustain this engagement, consistent publishing of your content is necessary. You can also engage in cross-marketing campaigns to ensure you’re targeting a wide audience. Conducting community engagement through exchanges can also help. Exchanges can enlighten their audiences about your product. As such, you should choose an exchange that’s popular in the crypto space.
Search engine optimization (SEO)
If you plan to leverage content marketing through your project site, then SEO is a must. You can use backlinks to increase traffic for your IEO project. Besides that, work on quality content that fits SEO requirements. Whether you’re using keywords or relying on a different SEO tool, ensure your blog accommodate them. An optimized blog will always have better visibility that helps in bringing in more traffic. Don’t forget to list your project with IEO aggregators to enhance project reassurance and visibility.
You need a massive community of investors to back your projects. That’s not all – they should be highly engaging – not just a group of airdrop participants and bounty hunters. You also need to build project awareness – whether it’s through AMAs or promotion campaigns.
However, you can have more influence on target clients through referral programs. It’s the most effective means to recruit new members of the community. That’s not all – it also supports large-scale outreach.
Advertising an IEO calls for the use of various marketing platforms to promote your project. Some of these platforms are websites, mobile apps, search engines, email, and social media. For an immediate presence, online PPC ads can also help. Through Google, you can target both YouTube audiences and traffic from searches.
Other potential places for crypto advertisement include DeFi conferences, Token Summit, and Consensus. Paid PR platforms for IEO ads include Cryptonews, Pressfarm, and Coindesk.
IEO promotional tools:
- Interviews or Podcasts – This is a great tool to use if you want to educate many audiences about the IEO project.
- Influencers – Many prospects respect recommendations from influencers. As a result, influencer marketing is a powerful tool.
- Telegram – You’ll need a project group to leverage Telegram in engaging prospects. You should also ensure you’ve got a managing team to handle all the questions and comments from the group members.
- BitcoinTalk – Need to maintain flawless communication with the target investors? BitcoinTalk will help with this.
- Twitter – On this platform, you can build a community followers for your project and also direct traffic to the project site. It’s also an ideal place to create project hype through engagement. Finally, it’s a perfect place for bounty and airdrops campaigns that motivate engagement.
- Reddit – this platform is designed exclusively for PR campaigns, however, you can still gain a few followers from it.
- LinkedIn – If you need networking opportunities, LinkedIn will provide that. It also provides an opportunity to engage potential investors and build a relationship.
- Website – By building a professional site, you’ll be able to educate target investors about your project.
Raise funds quickly for your crypto project by launching an IEO
The cost of running token offerings can be pretty high. However, if you use the IEO model, you can minimize it. With the IEO Crypto Guide above, you can run a successful IEO and build a supportive community while you’re at it.