Sunny Jain July 7, 2020
China’s late 2017 ICO ban left crypto startups in the country trying to find alternative solutions to raise funds for their projects. Projects started to discover the new trend of Initial Exchange Offerings (IEOs). This innovation allowed them to perform their fundraising with no fear of the law or the authorities.
What is an IEO?
An Initial Exchange offering, as its name suggests, is conducted on the platform of a cryptocurrency exchange. Contrary to Initial Coin Offerings (ICOs), an IEO is administered by a crypto exchange on behalf of the startup that seeks to raise funds with its newly issued tokens.
As the token sale is conducted on the exchange’s platform, token issuers have to pay a listing fee along with a percentage of the tokens sold during the IEO. In return, the tokens of the crypto startups are sold on the exchange’s platforms, and their coins are listed after the IEO is over. As the cryptocurrency exchange takes a percentage of the tokens sold by the startup, the exchange is incentivized to help with the token issuer’s marketing operations.
IEO participants do not send contributions to a smart contract, such as governs an ICO. Instead, they have to create an account on the exchange’s platform where the IEO is conducted. The contributors then fund their exchange wallets with coins and use those funds to buy the fundraising company’s tokens.( Read more )
IEO VS ICO — What are the Differences?
The table below shows the detailed differences between IEO and ICO
Benefits of IEO
One of the main advantages of IEO is trust. Since crowd sale is carried out on the platform of our exchange, the BitXmi team looks at every project that wants to launch IEO on our website. We carefully check token issuers.
Thus, fraudulent and dubious projects due to raising funds through our exchange platform are completely excluded.
Token issuers do not need to worry about crowd sale security, as the BitXmi exchange manages the smart contract IEO. The KYC/AML process is also processed by our exchange.
Since the listing of tokens is also included in the IEO transaction, the BitXmi exchange lists the startup token on the exchange after the end of the crowd sale.
We are glad to inform all Crypto startups and existing companies about IEO Launchpad from BitXmi. Join the new opportunity to launch your coin. Take the smart way and make a successful IEO to raise funds for project development. We are here to help you with early investors & social media marketing for the engagement of potential customers.
How to Participate in IEO Launchpad from BitXmi?
There are several ways to apply for IEO on BitXmi:
a) First way:
You will need to fill out a detailed form about the project, contact details, attach KYC Documents, the desired time for IEO, and send an application. After consideration, our team member will contact you shortly for further cooperation.
b) Second way:
Contact directly with our Listing and IEO Manager. To do this, write to our mail email@example.com or write in Telegram: @Samtajain
c) Third way:
Fill in the following information in the feedback window:
- Telegram ID,
- Full project name
Our manager will contact you soon. Our response won’t keep you waiting.
Based on our experience of more than 200 IEO sessions, we have developed a unique safety plan, which is open to all IEO projects launched on our platform.