As many organizations have found out in recent history, participating in ICOs (Initial Coin Offering) can be fairly risky, especially if you’re not an expert at ICO and fundraising. Since the first ICO was launched back in 2013 by Mastercoin (now known as Omni), billions of dollars have been raised by various ICOs. Just last year alone there were 1247 ICOs that raised over $7,500,000,000.
Until this year, ICOs were the main source of fundraising for blockchain projects. Leaving those inexperienced in fundraising to fight among themselves for the attention of investors. However, Initial Exchange Offerings (IEO) have the same goal in mind as ICOs, re: financing the project, but the process is one that inherently works better for fundraising. Especially for those smaller startups that haven’t received word of mouth hype or excitement about the project quite yet.
ICOs and IEOs work differently in that whereas during an ICO the company sells their tokens directly to the investors, with an IEO a 3rd party exchange completes the crowdfunding campaign. Exchanges not only help market the project, but also help attract new investors to participate in the token purchase.
However, there are several other benefits for taking your fundraising through IEO over ICO that you should be aware of.
- The exchange adds a good bit of credibility to your project as they will conduct due diligence before listing.
- The exchange comes with their existing customer base, meaning your altcoin or blockchain project will receive more exposure upon launch and you can save the marketing budget for expenditure elsewhere.
- Your potential investors aren’t required to pay for Gas when purchasing IEO tokens on the exchange.
- Your potential investors don’t have to complete multiple KYC procedures as they’ve either already done so for the exchange, or will do so a single time upon signup.
- Upon completion of your IEO, you can list your token on that exchange where IEO was carried out.
A HUGE bonus benefit of IEOs over ICOs is security. Since all transactions are carried out on the exchange’s IEO platform, there isn’t a chance of your investors being tricked into sending their investment to a wrong wallet address due to a scammer using official telegram chats to impersonate team members and give fake addresses to contribute to.
IEO is the safer fundraising platform for both the startup and potential investor. This digital world of ours is full of areas where simple mistakes can be costly but with scammers on both sides of the ICO fence, it just makes sense to protect yourself, your reputation, and your investors as much as possible from the outset.
If you’d like more information on the benefits of IEO over ICO or would like to move forward with conducting your own coin or exchange offering, visit our ICO Success website. We make sure that the many moving pieces of your successful campaign are properly coordinated.
– This article was originally posted at CryptoTraderNews
About CryptoCurrencyWire (“CCW”)
CryptoCurrencyWire (CCW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with CCW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled visibility, recognition and brand awareness.
To receive instant SMS alerts, text CRYPTO to 888-902-4192 (U.S. Mobile Phones Only)
CryptoCurrencyNewsWire is where News, content and information converge via Crypto.
For more information, please visit https://www.cryptocurrencywire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire (CCW) website applicable to all content provided by CCW, wherever published or re-published: http://CCW.fm/Disclaimer
CryptoCurrencyWire (CCW)
New York, New York
www.cryptocurrencywire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
This article contains Third-Party Content submitted by third parties, including articles submitted through the CCW Premium Partnership Program. All opinions, statements and representations expressed by such third parties are theirs alone and do not express or represent the views and opinions of CCW or its affiliates and owners. Content created by third parties is the sole responsibility of such third parties, and CCW does not endorse, guarantee or make representations concerning the accuracy and completeness of all third-party content. You acknowledge that by CCW providing you with this internet portal that makes accessible to you the ability to view third-party content through the CCW site, CCW does not undertake any obligation to you as a reader of such content or assume any liability relating to such third-party content. CCW expressly disclaims liability relating to such third-party content. CCW and its members, affiliates, successors, assigns, officers, directors, and partners assume no responsibility or liability that may arise from the third-party content, including, but not limited to, responsibility or liability for claims for defamation, libel, slander, infringement, invasion of privacy and publicity rights, fraud, or misrepresentation, or an private right of action under the federal securities laws of the United States or common law. Notwithstanding the foregoing, CCW reserves the right to remove third-party content at any time in its sole discretion.
