We’ve always been huge supporters of the Initial Coin Offering, and at the beginning of this year, we informed you that we would also be supporting services for Security Token Offerings. Well now, we’re here to inform you of a new, third option that has made its move on the market, the Initial Exchange Offering (IEO).
If you haven’t already heard what it is, an IEO is when you hand over the coin offering process to exchange and let them handle most of it for your team. With ICOs and STOs, your team does the marketing, you conduct the sale on your website, your team manages the smart contracts, and then your team needs to find an exchange to list with after the sale so that investors can sell your token. Well an IEO turns all of this over to an exchange, and they run it all for you.
All of this provides a more streamlined process for projects. It’s less work for the team and pairs you with a ready exchange who is willing to list your coin. It also gives your token or coins a leg up, because investors understand that exchanges have their own reputations to protect, so your coin has a higher chance of being invested it.
How do we participate in an IEO?
For this, you’ll need to find an exchange that actually has a platform on which you can run an IEO, like Binance’s Binance Launchpad, or Huobi’s Huobi Prime. Once you’ve found a said exchange, and you’re happy with the exchange itself, you’ll need to get in contact with the exchange and provide all necessary details they require, and more, as well as pay a fee for them to run the offering and pay a percentage of all the tokens sold.
Now we can’t pretend that that fee won’t be hefty. The exchange will be doing most of the work for you. They’ll manage the sale and distribution of the coins, manage the smart contracts, then list the coin. They might even do some marketing. So your fee will cover all of this. This means the most important part of running an IEO for your project is choosing the best exchange for your coin.
Researching which exchange to choose can seem like a daunting task. There are so many platforms available now and they all offer something different. This is why AssetRush is always at your service. We know the token sale process in and out and can help your project on its journey to becoming the next big thing in the blockchain. So if you’re looking for advice and consultation about IEOs, look no further.