Launching an IEO can be a daunting and long process, and even after all the effort you put in, it can end up a failure. Why? Because there are simply too many things you need to cover.
Writing a white paper? But you’re a developer, how the heck you should do that? You know that you need to focus on social media to build up your audience, but who has time for that? That’s where we come in.
At Rocket Fuel Collective we’ll do all the dull but necessary work for you to take your IEO from zero to hero.
Our Starter Kit Packages include:
White paper + Pitchdeck for investors
Website design for CRO
ERC20 token creation
SEO optimized articles on crypto news sites
Airdrop campaign to build community of supporters
Targeted e-mail marketing campaign
Viral referral program for IEO
Tier 1-3 Exchange
Start Raising Money via an IEO Using This Starter Kit
$38.9 million. That’s the amount startups raised via IEOs in the first six months of 2019. Keep in mind, we’re talking about six months, not even the entire year.
How did this happen?
IEOs started to pop up in the crypto space as early as 2017, however, they mainly went unnoticed. And that’s no wonder. 2017 was the year of ICO domination, when a website and a white paper was all you needed to raise millions.
But, things have changed. Today, we can confidently say that 2019 is the year of IEOs rise. And it was Binance that led the bandwagon. In January 2019, the exchange announced BitTorrent’s IEO, which was organized on Binance Launchpad. The results were, well, stunning. BitTorrent managed to raise $7.2 million in less than 15 minutes. Then came Fetch.Ai, which held an IEO on the same platform, and collected a whopping $6 million in just 22 seconds. Yup, seconds not minutes.
So, it’s no wonder that when Celer announced its IEO on Binance Launchpad, the number of people eager to participate was so big that the exchange experienced technical difficulties. Following the success of Binance Launchpad the other exchanges decided to jump on the bandwagon as well. And the games could begin.
What is an IEO?
IEO stands for Initial Exchange Offering. Basically, it’s a way of crowdfunding where blockchain-based startups can raise funds directly through a crypto exchange.
The first IEOs were organized in 2017, but they became popular only in 2019 with the success of BitTorrent. Why did that happen? Well, one of the reasons is that IEOs are beneficial for all participating parties.
For startups, IEOs are a great way to raise funds without expensive and long lasting marketing campaigns. For exchanges, this is a way to attract new users and gain profit since projects have to pay fees for hosting an IEO. And for users, IEOs them enable to become a part of blockchain project without running into a scam (which is unfortunately often the case with ICOs).
Are IEOs better than ICOs or STOs?
This isn’t an easy question to answer. And, like in most cases, the answer isn’t straightforward. We can probably say that it depends on your budget and your goal.
Each of these fundraising methods has its pros and cons, and to make them clearer we created a comparison table. Check it out.
|Characteristics||ICO||STO||IEO||Launch||Easy since there are no regulatory frameworks||STOs are launched and regulated by SEC||The exchange is responsible for launch and token issuing|
|Participation||Low entry barrier (almost anyone can invest)||High barrier to entry||Low entry barriers (all you need is account on the exchange that hosts IEO)|
|Risk||High (ICOs are notorious for scams)||Low (STOs guarantee legal rights and are transparent)||Low (the exchange is responsible for project’s trustworthiness)|
|Costs||Low||High (STOs require official registration)||Depends on exchange|
|Counter party||The project’s team||The sale is held on project’s website||Exchange|
As you can see from the table, IEOs, ICOs, and STOs all have advantages and disadvantages. If your budget is low, you might not be able to hold an STO, since official registration is quite expensive.
If you want to avoid the bad reputation and risk of ICOs, then you should consider IEOs.
Which exchanges have platforms for launching IEOs?
Keep in mind that exchanges will put you through a rigorous process (we’ll talk about requirements bit later) before accepting your project for an IEO. After all, the exchange puts its reputation at stake.
Here is the list of exchanges with platforms for IEO launching:
- Binance Launchpad
- Huobi Prime
- KuCoin Spotlight
- Bittrex IEO
- OK Jumpstart
- Exmarkets Launchpad, etc.
Which one to choose? That is totally up to you, and it mostly depends on your budget and the requirements exchanges have.
Speaking of that…
How do I launch an IEO?
First, you’ll have to pick the exchanges where you want to apply for an IEO.
Although different exchanges have different requirements, they have some common demands. So, here is what you’ll definitely need before approaching exchanges to host your IEO:
MVP stands for Minimum Viable Product. Simply put, it’s a product that has just enough core features for deployment and to get feedback for future development.
The whole cryptocurrency industry started out with a single white paper. Written by Satoshi Nakamoto, bitcoin’s white paper was enough to create an industry from the ground. That’s what a well-written white paper can do.
So, what should a white paper of your project contain? Here are some of the point you should cover:
Explain how your token will work within the broader ecosystem.
- A breakdown of your team
This is the part where you can feel free to brag. Show the best of your team’s biographies.
- Financial model
Write a thorough and clear explanation of how the project’s financial model will work.
- Target market
Who are you targeting, and how are your going to solve their problems? Who are your competitors? Are there any risks for your project?
Smart contract audit
Any reputable exchange will require that the project passes legal compliance tests before hosting an IEO. For example, due diligence. This is the research done to confirm all facts related to your project and before making any financial transaction.
Also, many exchanges will ask for a legal opinion, which includes the confirmation that the project’s token is a utility.
Without exaggerating, we can say that marketing can make or break your project. Yes, exchanges want to see 100% secure smart contracts, and a high quality white paper, etc.
But do you know what else they want to see? Strong online presence. Active and engaged community. Hype around the project.
And that, you can only achieve with a robust and well-planned marketing strategy.