Initial Coin Offerings (ICOs) have fallen out of favor with crypto investors. The perceived and inherent risk of investing in ICOs and the high chances of being defrauded have discouraged potential investors. Some reports say that over 70% of ICOs in 2017 were fraudulent. But that’s in the past now, a new form of crypto crowdfunding has emerged.
This piece is about a new kind of offering known as Initial Exchange Offering (IEO). We are exploring all you need to know before launching a blockchain project using an IEO. But before that, let’s begin with IEOs definition.
ICOs And IEOs: The Difference
IEOs are strikingly similar to ICOs. There is no much difference, except in the way they operate. Otherwise, investors are still allocated several cryptographic tokens in return for what they invest in IEO projects.
The major difference between ICOs and IEOs is; rather than the project setting up the sale process by itself and targeting investors, token sale is assisted by a third party. The third party is typically a cryptocurrency exchange.
Now, the rise of IEOs has seen several crypto exchanges introduce their Launchpad platforms. These platforms have been dedicated to assisting the market in the launching of blockchain projects that the exchange feel worth supporting and with potential to be a commercial success.
For a successful project, you need to;
Engage Your Audience
Running an effective marketing campaign is crucial for your project. While at it, make sure you exhaustively engage your audience. Not all audiences are the same. Hence, you might have to initiate research before conducting an effective campaign. And more importantly, implement the findings in your marketing plan.
A marketing campaign puts the project in a better position to be picked by an exchange. The competition between various projects on an exchange Launchpad can be incredibly fierce. It will be an added advantage if you already have a presence in the market.
Several different companies are specializing in running marketing operations for various blockchain projects.
Invest In Good PR
PR is one of the most effective methods of releasing relevant information to the crypto community. If the PR campaign is sufficient, the community around you is likely to favor your project and will be likely to invest in your business.
Writing guest posts at a variety of crypto news outlets is one of the tried, tested, and trusted methods of generating PR within the crypto space. And it doesn’t have to be about your project. Any information worthwhile for the crypto readers is valuable.
Start with posting on the problems your project aims to solve and how it’s going to solve them. By the time an exchange picks you, there will be more than enough information online about your project.
Chose An Exchange With Maximum Engagement
Once you have effectively marketed your blockchain project, you now have to choose a suitable exchange to host your project. And the first thing to consider is the largest possible exchange for maximum exposure for your project
Consider the exchange’s community reputation. The last thing you need is an exchange with lots of controversy within the community.it will certainly injure your reputation as an honest project.
In a nutshell, if your product is good, have marketed it enough and partnered with the right, popular exchange, then raising funds won’t be a problem for your project.