Over the past few months, funding for IEOs has been on the rise as startups seek to raise money to launch or build their projects. TokenMinds, one of the top crypto marketing firms today, has released an IEO Evaluation report to assess the key factors contributing to IEO success.
The report provides an overview of initial exchange offerings as well as the specifics of how prime IEO companies performed by leveraging various strategies to achieve success. Within the report itself, several factors have been identified as the key drivers of IEO success. These include project rating, team, marketing, community engagement, strategic partnerships, technology and choice of crypto exchange. To achieve a successful token sale, companies have to work hard to build traction and gain community trust.
Initial exchange offerings: What is it?
Initial exchange offering (IEO) is a new financing model that allows blockchain companies to raise funds directly on a cryptocurrency exchange platform. The exchange provides a platform where companies can conduct their token sales as well as a guaranteed listing on the exchange after the sale concludes. These tokens are sold to individual investors in exchange for fiat or any other cryptocurrency.
Binance was actually the first crypto exchange to create an IEO launchpad. Among the projects to have successfully conducted a token sale on the Binance platform are BitTorrent and Fetch. AI. BitTorrent, for example, managed to raise $7.2 million within 15 minutes.
The IEO fundraising model is different from ICO in that, in IEO, the exchange facilitates the token sale rather than the startup doing it themselves. For this reason, many startups have begun to recognize the benefits that IEO offers.
What are the benefits of IEO?
IEO offers companies an opportunity to sell tokens and also benefit from listing, marketing, and investor verification services they exchanges provide. Moreover, the IEO platform manages all smart contract transactions on behalf of blockchain companies. This ensures better security for both the token insurer and investors. With IEO, companies can raise funds from an existing and stable user base built by the exchange. This gives them better visibility among investors. IEO also saves these companies from having to invest a fortune in marketing or issuing tokens by assigning these tasks to the exchange. On the other hand, token holders enjoy easy liquidity since the exchange is offering to list the token.
Launching IEO on the exchange
Companies planning to launch an IEO must seek authorization from the exchange to have their coin listed. The exchange usually conducts very strict verification and only highly vetted projects get listed. Besides, many exchanges charge a listing fee before listing your project, but there are a few others that you only pay after a successful token sale. It is also important to draft a comprehensive whitepaper that will serve as a proposal document to investors. Lastly, make sure you set a reasonable goal for your fundraising campaign. After successful listing on the exchange, promote the project using various marketing strategies to maximize exposure.
As we have seen with recent projects, the IEO fundraising model is not flawless. Most IEOs fail miserably, at achieving their objectives. Even for those that reach their hard cap, short-term selling can greatly affect the project’s price after listing. The report presented by TokenMinds suggests that the choice of exchange, the depth, and reach of marketing, as well as a highly engaged community, play a huge part in the success of an IEO. Moreover, the report identifies Asian markets as highly ideal for IEO marketing mainly because the region has advanced interest in cryptocurrency and blockchain technology.
According to the report, projects must invest in marketing and community engagement to achieve a successful token sale. IEO marketing strategies such as social media, PR and influencer marketing helps to generate exposure for the project. Companies that put time into building strong communities around their project find it much easier to raise funds through IEO. Additionally, it is important to partner with a reputable exchange for your IEO to increase the chances of success. The more popular the exchange, the higher the likelihood of selling to a wide network of investors.
To get the full IEO Evaluation report, go to: https://lp.tokenminds.co/ieo-report
HackerNoon contributor recently ranked TokenMinds among the top global crypto marketing firms in the cryptocurrency sector. The crypto marketing firm has been active in the blockchain space since 2015. TokenMinds is part of PurpleMinds, a digital marketing agency that specializes in community marketing, PR, and blockchain marketing. PurpleMinds employ data-driven marketing strategies to help businesses achieve an increase in ROI, organic traffic, qualified leads, and growth. The agency plans to continue to take on new clients even as it seeks to drive business development in the blockchain space.
TokenMinds, meanwhile, has worked with quality blockchain projects over the years including Celsius, Ebakus, Capdax, Bezant, Flux, Birdchain, IOTW and many more. The company offers full-service marketing assistance which encompasses PR and influencer marketing, community management, website design, whitepaper creation, among others.
In terms of the IEO launch, TokenMinds specializes in all aspects of IEO marketing ranging from whitepaper and website creation to community management and fundraising. They have an incredibly strong network of investors and media connections as well as a team of marketing experts who can bring remarkable success to any project’s IEO strategy. So far, the company has helped its clients raise over $70 million through IEO.
The TokenMinds IEO Evaluation report comes at a time when the IEO market is experiencing a decline in terms of the amount of money raised, according to a report by crypto intelligence firm TokenInsight.