Many crypto people believe that an initial exchange offering is the next step in ICO evolution. ICOs are unregulated and not controlled by any third parties whereas the initial exchange offering is supervised by any of the popular cryptocurrency exchanges.
In fact, IEOs started gaining traction after the launch of the Binance launchpad. Also, initial exchange offerings are more accessible than STOs, allowing almost everyone to participate and invest (except countries with regulatory restrictions).
Essentially, for startups, IEO is another ideal way to crowdfund their business via prominent cryptocurrency exchanges. In IEO, the exchange acts as a mediator. With the aid of cryptocurrency exchanges, budding startups are able to dramatically increase their exposure, attention, and reputation.
After a successful IEO, token issuers pay a listing fee as well as an agreed-upon amount of tokens for the use of IEO platform services. Soon, the tokens will be listed on the exchange, where investors will have access to instant liquidity.
Advantages of an IEO
📝📝Here is the procedure that, helps you to understand, how the IEOs are working clearly.
💡Step 1 - Initially, a startup has to prepare the white paper for the project.
💡Step 2 - After verifying your IEO project, an investor will register and create an account
💡Step 3 - On the exchange platform, investors must finish the KYC and AML verification process.
💡Step 4 - Following that, an investor will look for accepted cryptocurrencies and invest in the relevant IEO project.
💡Step 5 - Finally, by selling their tokens in the respective crypto exchange, startups can raise funds for their business.
💡Step 6 - Now, your investor can deposit funds into your wallets and purchase your IEO tokens.
In simple terms, if you are a startup, make a strategic plan today and reach out to the best IEO Development Company to develop your crypto token and whitepaper. Also, they will help you to list your tokens on a cryptocurrency exchange, making them available for trading.
So that startups can launch their IEO more efficiently, effectively, and successfully, increasing their chances of raising the capital they need for growing their business.
