Initial Exchange Offering
What it is and how to do one successfully.
Most ICOs failed, STOs are in the future, IEO is right now.
What is an Initial Exchange Offering?
In short, it is just another way to raise money but faster.
Developers and exchanges negotiate the terms to conduct token sales directly on the exchange. While everyone’s trying to figure out how Security Token Offerings (STOs) will play out, IEOs have steadily be on the rise.
It’s become so popular that icobench is actively promoting it.
Benefits for all
1) Negotiate only with the exchanges. It’s a lot easier than going around the world to convince people to lock in their money with you.
2) Tap into the users that the exchanges already have.
3) Exchanges will do the marketing for you because your incentives are aligned.
1) By selling shovels during a gold rush, they win again.
2) New sources of revenue – they can be accelerators and marketers now.
3) Exchanges usually receive a portion of the tokens; thereby aligning the incentives. I will not go into the specifics, but just imagine the possibilities.
However, since exchanges are in the reputation business, reputable exchanges will avoid ill practices.
Most ICOs failed and no one wants to wait for months until their ICO gets listed. Now they get to purchase right away.
Pierre Alexdandre lists some exchanges that does IEO.
Successful Initial Exchange Offerings need to
Focus on aftermarket activities
Quick access to capital is great. But speculative activities can make or break you.
• Good market-makers provide the liquidity and price-protection to prevent speculative activities and pump-and-dump schemes.
• Contrary to their misleading names, good market-making help projects achieve organic growth. (Seriously, change the term!)
2) Reputation management
I can tell you so many things but just remember this.
• People will talk about you
• Most people ask others to make decisions; understand what or who influences them.
• Most importantly, actually focus on building something that works.
Providing the banking infrastructure for the unbanked alone could lift millions out of poverty and help us grow into a more prosperous and innovative world as a whole. This industry has huge potential.
Decide if you want to help build the future or just chase money.