What is IEO?
IEO or "Initial Exchange Offering" is one of the crowdfunding models. The IEO procedure is identical to the ICO except for the fact that only certain organizations can conduct it.
As of 2019, this function is performed mainly by crypto exchanges, which greatly simplified the situation on the market. The resources of the largest platforms allow them to conduct technical and audit reviews of projects, as well as consider the inclusion of promising tokens in the listing. It should be noted that at the same time, the licensed activity of large exchanges ensures investor confidence and, as a result, interest in the proposed projects.
How IEO works
The cooperation of the exchange with the developer and the interaction of the exchange with investors are the key stages of the listing process.
With the help of the listing, the developer submits his product to the exchange, which at the time of submission must comply with the requirements of the exchange for projects of this kind. Finance Business Service specialists are always ready to advise you on whether your project meets the requirements. Next, the exchange conducts a comprehensive audit of the company, evaluates the product and its prospects in order to determine the investment attractiveness of the token. Based on the results of the verification, the token will be included in the listing or rejected.
After the end of the auction, the developer, according to the contract, receives the collected funds. At the same time, the token remains on the exchange. At the last stage, two development paths can be considered:
- The developer fulfills all the duties assumed, which leads to the growth of the token;
- The developer violates obligations and agreements, which entails the fall of the token and its removal from the exchange
Advantages of IEO vs. ICO
- Security - the company will not allow all sorts of "schemes" to enter the token sale;
- A good opportunity to make a profit - exchanges very carefully select projects and list only those products that are really promising and have the potential for development in the future;
- Manipulations - ICOs were often manipulated with transfer fees, which significantly increased the cost of initiation;
- Minimization of efforts - the investor is not required to perform a large number of actions. It is worth passing verification once in order to be able to invest in any project on the exchange in the future;
- Investing in Fiat – ICO only allows investment in cryptocurrencies. In the case of an IEO on some exchanges, you have the option to invest in Fiat, provided that it is supported by the exchange;
- Advertising - exchanges that conduct token sales have a serious reputation and a large number of potential investors.
White Paper
A white paper is a document that details the idea of a project, contains its technical characteristics and schematically shows the prospects why it is worth investing in it.
This document is mandatory when applying for participation and is provided immediately after filling out the form.
Listing
The application is filled out electronically. The application form must contain:
- Data about applicants - what role does the applicant play in this project, is it one participant or a team.
- If you apply as a registered company, you must additionally submit information about the company itself.
- Data confidentiality - some exchanges leave a document to the end, which you should read when submitting an application and check the appropriate box or download the document and put your signature on it.
- Whether your token is regulated by any jurisdiction - you must indicate in which state the token is registered. There are restrictions on tokens from the USA on some exchanges.
- Your currency type
- Submission of White Paper.
- The main scope of the token is, for example, cloud computing, file storage, the market and the fight against counterfeiting, etc.
- The level of development of the project, and whether it is currently in use.
- Team information - if you have a company and employees, the exchanges will require you to provide documents such as a working day schedule, job descriptions, employment agreements / contracts.
- Information about the receipt of funds in the company.
- Submission of a copy of the company's statements - exchanges may refuse companies that are registered in unreported jurisdictions.
- Checking the information / advertising page of the token - the presence of such a resource is a mandatory requirement on all exchanges.
Our services
- Consultation - we will describe in detail the stages of the project implementation, as well as the nuances of conducting an IEO, conduct a full analysis and help you choose an exchange
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Company registration and preparation, which includes:
- choice of jurisdiction;
- incorporation + obtaining legal. addresses;
- opening a bank account;
- obtaining a patent (optional);
- preparation of corporate documents, employment contracts, job descriptions;
- preparation of White Paper;
- preparation of a business plan.
- Listing submission.
- Support during the IEO.
- Legal support in bringing your currency to the exchange.
