How to start an IEO in 6 easy steps and achieve the desirable hard cap and brand targets

Establishing a perfect crowdfunding method for raising the initial funds directly on the cryptocurrency exchange

Ivan Nedeljkovic
Jul 8 · 9 min read

IEO Benefits in a nutshell

User-wise, IEO participation is very intuitive as no on-chain transactions need to be handled with different wallets on different blockchains. As an alternative, users only need an account on the exchange and some assets in their account and they are ready to participate completely over the trusted website’s interface. Moreover, the exchange is staking its reputation behind the projects on its platform, offering a higher degree of trust behind the project.

Letting the exchange prove the project’s integrity

Usually, project developers don’t have adept knowledge in token launching and hosting a token sale. In the case of an IEO, projects put their faith in the exchange’s hands to conduct the token sale on their behalf. By doing this, IEO-based projects avoid expensive Token Generation Events (TGE) and implement KYC/AML models, as the exchanges supervise these specifics and grant reliability and security. It comes as no surprise that the exchanges also endorse tokens and often administer marketing campaigns to attract numerous users to their platform with the aim of purchasing the token.

Eliminating “Scompanies” for potential investors

Crowdsales are generally hosted on acknowledged exchanges with global presence and a huge number of users who back its services. Investors are therefore willing to get involved as the trustless deal settlement and stress-free contribution process are under the close scrutiny of the exchange itself. As soon as the exchange lists a certain token, investors can be rest assured that the project has undergone a severe due diligence and avid background check before the token launch. With a proven track record of viability and lucrativeness, there’s no need to perform additional researches on the project and its team members. Unlike the ICOs, investors are not submitted to tedious transaction processes with several wallets, but instead need to deposit funds directly in the exchange account, and purchase the tokens on the spot.

“Nothing ventured, nothing gained” — trailblazing the IEO with agile business decisions — CoinPoint

Generally, requirements, timelines, duration, and fees vary from exchange to exchange — but they all follow a similar pattern for launching an IEO. There are common guidelines and “must-haves” projects will need to follow in order to ready themselves for an IEO launch. These are as follows:

Requirements:

· An MVP or demo that can be shown

Security:

· 95% of gathered digital assets will be stored in cold wallet to protect against theft or loss

Token Model

It’s an essential benchmark for any investor looking for a project to have a detailed description of the token model, its features, and its value in the long run. Furthermore, the project must specify which type of token is going to be utilized (Payment, Utility, or Security) and which distinguishable elements the tokens will have. Ultimately, token as a unit of value is produced to self-govern its business model — empowering users to interact with the product, while facilitating the distribution and sharing of rewards and benefits to all of its stakeholders.

Token Issuance Conditions

· Crowdfunding model definition and incentive

Standardized Documentation

All projects need to encompass fundamental features to investors and showcase their structure, roadmap, tokenomics, and other relevant justifications. All of these aspects have to be disclosed in the:

Business Model with Revenue Streams

The business model precisely delineates project’s vision towards achievement of specific business goals and objectives. From an investors’ standpoint, it is of the utmost importance to grasp the operational model and monetization plans to predict the forthcoming project’s value and success.

Strong Team

If you put yourself in investor’s shoes, would you go insofar as to put in an arm and a leg into the most disruptive project if the given project lacks experienced team running it? Transparency is everything is today’s IEO market. Technically intricate enterprises need a profound, qualified team of proven track record both in development and business operation to be marked as legitimate. In cases of experience and knowledge absence, enterprises turn to IEO experts to facilitate the process for them and help in building the road to success through specialized methods and endeavors — something that CoinPoint is the most proud of.

Legal Opinion

Attaining a law firm to issue a legal opinion for your enterprise (whitepaper) is no less important as a regulatory must-have than the IEO elements we have already covered. There are a vast spectrum of legal requirements and recommendations for accessing an IEO, including:

  • KYC procedures
  • Risk assessments to get rid of pitfalls during the IEO process
  • SEC compliance

Smart Contracts Development & Audit

Namely, the most important indicator of the project’s success — smart contracts. Technically, smart contracts must be 100% secured and audited for any potential liabilities since any minor mistake could cause insurmountable damage to the environment and all its participants, not to mention m/billions of dollars of funds extortion. Contrastingly, if the code has been perfected and the project’s idea has been well-facilitated through the smart contracts — there would be no stopping the project. In these cases especially IEOs tend to raise tremendous amounts of money.

  • compilation of a checklist with a detailed summary of vulnerable areas
  • report of the work done

Marketing

We have saved the best for last. IEO marketing strategy is as crucial as all the above aspects combined. Without a tailored IEO marketing campaign, the project’s lifespan would drastically lessen and investors, if there are some, would find the product repulsive. The premium marketing strategy will capitalize on detecting appropriate project’s audience and create buzz-worthy hype around the product thereby driving further attention to it and attract big investors. Even though that the exchanges themselves often offer marketing campaigns to attract token holders and big fishes to the project, they are not doing it for the wellbeing of the project, but rather to ambiguously promote their own platform. We can conclude that the incentive itself is not as good as having the dedicated marketing agency on a sole mission of getting the IEO out there — to the investors and the right, targeted audience, such is CoinPoint.

Final note

Change is the path to a better market. Where ICOs once dominated is now under the full control and jurisdiction of IEOs, whose approach is too good to be overlooked and the fine-tuned level of trust has finally eradicated the ever-growing doubt.

CoinPoint

CoinPoint is a multinational premium digital marketing agency, with an outstanding place on the global blockchain and crypto map since 2013.

Ivan Nedeljkovic

Written by

Making crypto great again!

CoinPoint

CoinPoint

CoinPoint is a multinational premium digital marketing agency, with an outstanding place on the global blockchain and crypto map since 2013.