The advent of IEOs in 2017 stirred a massive storm in the cryptocurrency industry, as it changed the crowdfunding landscape forever. The fundraising method is quickly gaining popularity among blockchain startups looking to raise funds as this tokenized fundraising method is trustworthy among investors. The first-ever IEO conducted by Tron’s BitTorrent via Binance Launchpad made a sale of 59.4 billion within a mere two sessions. The Tron IEO served as a testament to the world telling how much more credibility your project can gain by having an exchange as a launchpad.
Fund Raised Through IEOs, 2019
After the immense success of Binance Launchpad, various other crypto exchanges announced the launch of their own IEO platforms. Yet, many of the startups seeking funds fell short compared to investment garnered by Tron, leaving us wondering as to how Tron did it?
So are you looking to launch an IEO funding project? Let us see exactly what are the essentials to launching a successful IEO.
Essentials to a Successful IEO
IEOs are an appealing alternative to the traditional ICO fundraising method. There are certain essential features that a blockchain project must have in its portfolio in order to collaborate with an exchange for conducting an IEO.
A Dream Team of Reputable Personals of the Industry:
No other factor plays a greater role in establishing the trust and confidence of investors other than having a qualified, experienced, and reputed team. Exchanges immediately dismiss the projects with an under-qualified founding team.
A Strong Product and Business Model:
Investors show their interest in those projects which they find worthy of investment if the product proves its viability to them. Any Crypto Exchange would associate themselves with a project only if they have confidence in the product and see a clear path to success for the project. The investment world is not based on bare concepts and ideas. Thus, having a Minimal Viable Product would make your project much more credible and trustworthy than anything else mentioned in the whitepaper.
Having a Working or Underdevelopment Product:
Observing the successful model of Binance’s IEOs, we find out that most of the projects had already made substantial progress in developing their products before approaching the Exchange. Once you have started some noteworthy development work on your product, choose the exchange platform you want to work with. Make sure the project fulfills every eligibility criteria of the crypto exchange.
Proper Documentation, White paper, and Tokenomics:
One of the most essential and necessary requirements of a successful IEO is to have detailed documentation and attractive website. The documentation must include whitepapers, technical papers, token economic analysis, Pitch Deck, One Pager, etc. Though the token-sale is launched on the exchange platform, yet, the marketing website must be polished, easy to understand, investment attractive and visible to the audience. The documentation must include every necessary information and statistics from the project’s objective to the analysis of market, development strategy, tokenomics and roadmap.
Complete Sales Pitch, White Paper:
The White Paper of the project serves as a proposal/prospectus document for investors. It is the White Paper which is the backbone of the sales pitch to potential subscribers about what makes your project worth their attention and money. Make sure your white paper is compact, yet it is as extensive and elaborate as possible. The essential details of your white paper must include:
(a) The financial model and why was it chosen
(b) Who are your competitors and why choose you over them
(c) Project description and how your product/service fits the market and how it fulfills the market needs
(d) The targeted audience for which the product/ service has been designed
(e) The credibility of the team.
After the draft of the White Paper, it should be reviewed by an external advisor/ market professional, so you receive an alternative perspective.
An Audience with Interest and Engagement in Project:
Most of the exchanges won’t be willing to support an IEO project if the project hasn’t been able to generate substantial public interest and engagement already. The Exchange aims to benefit from hosting a new IEO, projects appeal to the exchange by providing the prospect to attract new users to their platforms.
Strong PR and Social Media presence:
In the digital age, there is no better advertisement platform than Social Media. The key to a successful IEO lies in getting your project seen by as many investors and traders as possible. Make sure you have a strong PR team with a goal to provide your project with 360° visibility. The idea is to promote the project by running marketing activities such as Social Media Marketing, Press Release and Outreach, SEO and Content Marketing and Commenting on Related Forums.
Recommended Crypto Exchange to Launch IEO
Today, many Crypto Exchanges offer to enlist IEOs but which one is best for you? These days every exchange has its own set of rules and regulations, which change as per projects and their dispositions. COSS Crypto Exchange provides the best launchpad for your IEO along with creating a marketing environment to perform an amazing IEO and achieve your goals. The COSS trading platform is a constantly growing marketplace which offers 50% of trading fees to the COS token holders, thus, attracting a large base of potential investors.