An Initial Exchange Offering or IEO is a relatively new and optimized way to raise capital through crowdfunding. Here, a cryptocurrency exchange undertakes the responsibility of different processes on behalf of the entrepreneur, thus helping them focus on important aspects of the business. In return, the entrepreneur will not list or promote their tokens on another exchange platform.
IEO is gaining a lot of popularity amongst startups and investors alike because of the following features:
The cryptocurrency exchange manages the processes of tokenization and issues tokens for the client.
The exchange conducts thorough background checks on the featured projects and verifies that the entrepreneur is following different regulations.
The exchange platform also carries the burden of promoting the token and attracting investors towards different projects.
In return, the exchange also lays down a couple of restrictions on the client as well. For example, the entrepreneurs are signed exclusively to one service provider and hence they cannot list their tokens on different platforms.
However, its easier said than done, many exchanges lay down strict instructions that often confuse entrepreneurs thereby causing delays in acquiring funding. Blockchain App Factory can help you circumvent this problem. We are one of the top cryptocurrency development firms and have unparalleled experience with different blockchain-based crowdfunding solutions. We help you with processing your project and help you adhere to different regulations. Our close partnerships with leading platforms help you Launch Initial Exchange Offering on Binance, IDAX, LA Token, and several other top exchanges.
