Initial Exchange Offerings: Addressing the ICO’s Weak Points
The trick to addressing the ICO’s weak points is actually built in the new IEOs as it seeks to address all key issues but still aims in keeping some of their flexibility for investors as opposed to the much stricter STOs. This is because IEOs are techically ICOs directly managed by crytocurrency exchange companies, unlike the wild west of 2017. These are the exaxt places where online selling cryptocurrency blew up, with big names such Binance and Coinbase. They’re the ones that look to manage the ICO’s problems to make sure everything is fair, trustworthy and deliver value for both the investors and investee alike.
Whereas ICOs preserved a company’s control, creating their own project’s websites and gathering their own set of investors, the IEO is managed and run by a third party. Companies on both nonetheless seek the same investment routine so each come up with a concept and a white paper then requests to list their coin sale, whether by themselves or via an exchange. Both processes undertake due diligence to greatly ensure safety through KYC and AML restrictions, a step which should never be breached or skipped to make the trade’s business is credible an the deal a good fit for both parties.
Sometimes when everyone is happy and puts full trust on the exchange, they then get to manage the whole process. The first thing they do is of course, marketing. As it’s a given that the exchange will need to put effort on a relatively high profile marketing, it’s actually relatively straightforward as opposed to individual companies in the past which was often a nightmare to attract investors.
The exchange then manages the actual sale of the tokens. For the finale, when the sale has finished, the coins (or what’s left of them after the initial pre-sale, at least) are listed on the exchange. This is a very huge factor for investors because ICOs could take from several months to even years before they have a token that they actually could sell if they wanted to. With an IEO, tokens are immediately available and trading begins right away.
Now, the way these exchange make money is that they take a cut, or in most cases a certain number of coins, from the new business they helped fundraise, as well as benefiting from any and all transactions. Contrary to many ICOs where the only way people could invest was via crypto however, the biggest advantage you can get for having your offering be managed by an exchange is their ability to enable investors to buy coins using whatever type of currency they want, including fiat!
In the world of Crypto, finding the right people to do the job can be troublesome and difficult at best. This is why at FIAT Exchange, we offer an all-in-one service encompassing everything there is to launching a token offering, as well as ensuring that everything is safe and transparent with all of the legalities done first. As a pioneer in the consensus industry, we offer the tools to democratize access to finance and through our platform, investors, start-ups and established companies are able to find opportunities they otherwise never would have.
At FIAT Exchange, we have consultants to help innovative start-ups, promising businesses and even well-established corporations launch their own Initial Exchange Offering, Initial Coin Offering, Security Token Offering or Reverse Token Offering effectively, efficiently and successfully. As a constituting body, we act as partners and assist each and every project from compliance, fundraising, and to final listing in our Digital Marketplace.
While there already are other operating equity crowdfunding platforms in the European Union, we are the first to expand to become a broker-dealer and introduce to our investors an alternative Smart Securities layer, offering a secondary market where investors can trade their startup securities.
If you are an Investor looking to unlock access in the FIAT Exchange ecosystem and discover new investment opportunities or if you are an Entrepreneur looking to raise capital, we can definitely help! Please feel free to contact us: firstname.lastname@example.org
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