How is an IEO different from an ICO?
Fundraising comes in different forms, thanks to the innovation of ICOs. But the growing demand for more secure means to raise capital for newfound blockchain ventures has led to the invention of IEOs. Short for Initial Exchange Offering, IEO is the next step in decentralized fundraising via cryptocurrencies. Let us discuss why Blockchain Firm is the best IEO Development Company to build an IEO for your blockchain venture.
Fundamentals of an IEO:
1. Trust:
ICOs have earned a bad reputation in the last decade owing to a sheer lack of trust and reliability post-investment. Fraudulent entities abscond after clients invest in ICOs lead to the development of the project.
IEOs ensure reliability in an investor, as the project goes live after validated by exchange platforms. It drives investors to trust the tokens launched by the IEO. As tokens are available in the exchange, investors invest in the project via token purchases.
2. Fundraising Strategy:
Every ICO must possess a clearly defined strategy for raising its funds/investments. Investments can be made in any form, as the investors possess complete freedom in investing so.
In an IEO, investments are generated in a hassle-free manner, eliminating the need for admin and investors dashboards to perform the fundraising processes. Crypto exchange runs fundraising campaigns for the companies that seek to raise funds.
3. Smart Contracts Regulation:
ICOs are predominantly controlled and regulated by the company owners and officials. Thus, even in the initial stages, investments are only driven based on the project’s human resources’ effort.
IEO projects are hosted on exchange platforms. Meaning, the exchange takes ownership to build and deploy smart contracts with integrated regulations and management protocols. Companies are relieved of the responsibilities, and smart contracts for token sales automate them.
4. KYC/AML Checks:
ICOs did not enable your Customer (KYC) and Anti-Money Laundering (AML) in the ICO initiatives. Thus, the lack of security measures to prevent fraudulent behavior led investors to not invest in ICOs.
In IEOs, however, both KYC and AML are mandatory as the exchange platform by itself reinforces them. It is liable for exchange platforms to conduct strict KYC/AML verification and collect every detail about the participants. Because the exchange performs AML/KYC procedures, companies can focus on other crucial activities, and investors don’t have to worry about security.
Now that we know how IEOs have upgraded from ICOs take a gander at how Blockchain Firm has to offer to their client as an IEO Development Company.
- Token Creation/Development: Our token development team can build tokens on various blockchain platforms, including Ethereum, EOS, or Stellar, to cater to our client’s needs.
- Exchange Listing: Partnering with only the best crypto exchanges globally, we assist clients with their IEO project listings to promote cross-border investments.
- White Paper Creation: A whitepaper is an indispensable document that gives a comprehensive overview of investors’ projects. Our team brings extensive whitepaper development skills & services to the table to illustrate every project aspect.
- Investor’s Peek: We build clear & concise presentations that hold complete and straightforward details of your IEO project. Investors gain a quick yet clear insight into the project idea and feasibility.
Conclusion
An IEO Development Company ensures all the features mentioned above are instilled within the fundraising project before the IEO token is enlisted in an exchange. Visit Blockchain Firm here to propel your IEO project to its success in no time.
