Initial Exchange Offering is quickly becoming the go-to fundraising option for entrepreneurs. This can be seen with the increasing number of platforms offering IEO support. This trend is further expanding with the introduction of white label exchange services.
Advantages of Initial Exchange Offering:
- In a nutshell, IEOs use exchange platforms to verify, list, and market projects. This is further explained in the following list:
- In this funding model, the exchange functions as the trusted intermediary
- Exchange conducts checks to authenticate projects and credentials of the entrepreneurs
- Exchange lists the tokens on a secondary platform known as launchpads
- Marketing campaigns are organized by the platform and are promoted to their members
- Exchange also manages smart contracts as well as the token creation process
- At a later date, the IEO tokens are shifted to the primary exchange thus providing the user with greater liquidity.
Earlier, the reputation of this decentralized fundraising medium was maligned by dubious projects and malicious individuals. Fortunately, with the introduction of Initial Exchange Offering (IEO), this perception is changing the crowdfunding landscape for the better.
In the IEO model, a cryptocurrency exchange functions as a trusted intermediary. In fact, the platform functions as the judge, jury and executioner. They not only verify to check if projects follow compliance but also organize and manage token creation activities on behalf of the entrepreneur. Meanwhile, the project is also promoted to the members registered with the exchange.
However, the marketing strategies offered by the exchanges are incomplete and suffer from the following problems:
- Exchange may promote the project for a very limited period
- Project does not get any exposure on social media
- Most platforms offer only very basic marketing support
- Entrepreneur will have to shell out extra money to access extra features
Hence, it can be seen how the exchange inspired marketing services are very bland. However, this can be rectified with the help of third-party operators. These companies are partnered with leading exchanges and offer great packages on IEO services. They also take care of the listing process and give your project an all-around marketing experience.
Blockchain App Factory is a leading cryptocurrency exchange development company. They offer exclusive IEO services and have strategic affiliations with top exchanges such as Binance, IDAX, LA Token, and more. For the Best IEO Development Services, approach Blockchain App Factory. We have partnerships with top exchanges such as Binance, LA Token, IDAX, and more.