Initial Exchange Offering (IEO) Is The New ICO
If you keep an eye on the ICO industry’s news, you must be aware of the intimidating tendencies that take place these days. USA SEC increases its pressure, forcing the teams to shift from ICOs to STOs (Security Token Offerings). Alongside with that many of the projects are struggling to maintain the token value and list their tokens on the major exchanges.
However, there is a way to enter the market, put your token to the exchange, and incentivize trading even without conducting a regular ICO or STO. How is it possible? Meet IEO, which stands for Initial Exchange Offering. IEO is a smart way to launch a blockchain-based project and place your token on the exchange without taking the risks associated with a traditional ICO or STO.
♦ How Does An IEO Work?
An Initial Exchange Offering is a fundraising strategy that implies collaborating with a crypto exchange (or a number of exchanges) as a counterpart.
The project issues tokens, but instead of selling them directly to the investors, it sends them to the exchange, which in turn would sell the tokens to individuals.
The terms of the cooperation between the venture and the exchange are outlined in a contract. They may include a maximum contribution from one participant, a token price, etc.
♦ What Are The Benefits Of An IEO?
1. All the major exchanges have their own user bases, and this community can be your first target audience.
2. An IEO eliminates the risk of a ‘Gas War’ between the contributors.
3. The risk of third-party fraud is also eliminated since the investors know that the exchange Is the only place where tokens can be bought.
4. The fact that an exchange agreed to conduct an IEO for the certain project serves as an additional factor of trust and reliability. The users presume that the exchange has conducted its own research before letting the token in.
5. It is easier for the token to hit the exchange since it is already there.
6. You don’t need to carry out roadshows and investors’ meetings.
7. You don’t need to bother with transaction fees, token distribution, etc.
8. No need for KYC/AML (Know Your Client / Anti-Money Laundering) if the exchange has its own KYC/AML procedure.
♦ How To Launch An IEO
Are you wondering if your project can qualify for an IEO? Let Priority Token take care of it! We offer a new service — a full IEO support that covers the whole process, from planning and developing a strategy — to the post-IEO and follow-up services.
♦ What We Offer
►We ensure that your project is ready and packaged for an IEO.
►We conduct a preliminary audit of the project and make sure it qualifies with the exchange’s checklist for IEO applicants.
►We make all the necessary amendments to the project’s papers and resources — White Paper, Investment Teaser, One-Pager, Website, etc.
►We assist in the formation & incorporation of your legal entity structure, provide legal opinion and project review, offer the preparation of a full set of papers in compliance with Regulation D from SEC (if required).
►We carry out all the negotiations with at least 3 of the leading exchanges.
►We take you through the whole process and offer a full support and guidance on every stage.
An IEO is truly the new ICO since it saves you the trouble of handling the token sale and distribution, the KYC/AML procedure, and many more issues. It is a smart way to raise funds for your venture and create a demand for your token in the long run.
Priority Token can take you through this journey and make it comfortable for you by taking over all the hard work that has to be done. Want to qualify for an IEO? Contact us to get a quote!
