Importance of Marketing in 2020 for IEO

 

IEO is a crowdfunding technique in a crypto market. Entrepreneurs launch an IEO to raise funds for their project. Tokens are issued by the entrepreneurs for their project. The investors can purchase these tokens in exchange for cryptocurrency like Bitcoin, Ethereum, etc. The tokens are not sold directly to the investors but through an exchange. These exchanges are responsible for marketing and trading these tokens. Although exchanges are accountable for marketing an IEO, one should never fully trust these exchanges. Every entrepreneur should equally participate in marketing their project.

IEOs are the latest trend. Many entrepreneurs are launching new IEOs for their project. If you are planning to start an IEO, you must know that marketing is very crucial for the success of an IEO. Many entrepreneurs even approach professional companies to launch and market their IEO. These companies provide excellent IEO Launch Services and IEO Solutions. In this post, we will discuss the importance of IEO marketing and understand why marketing should be your top priority for IEO. IEO marketing can be divided into three stages.

Three Stages of IEO Marketing

1. Pre IEO Marketing

In this stage, you need to inform the investors about the IEO. You should create awareness about their project, token and company. It is done to create hype among the audience and to make the IEO launch successful. This stage of marketing plays a very important role in creating a huge opening for an IEO. 

2. Ongoing IEO Marketing

This is the second stage of marketing. In this stage, the IEO is already running. The time period is very short at this stage, so the marketing techniques need to be quick and fast. Most people prefer social media marketing, campaigns and content marketing. It is done to boost the sale of tokens. You need to expand your audience reach in this stage.

3. Post-IEO Marketing

This is the last and final stage of IEO marketing. You need to give your all at this stage. It is mostly done to inform the investors that token launch is over. It shows the credibility of the project. It is also done to increase the demand for the coin in the crypto market. High demand will increase the price of the coin. You can create a marketing website to keep the investors updated.

These are the three important stages of marketing an IEO. You need to plan each stage ahead of time to make the most of market conditions. 

Tools and techniques of IEO Marketing

There are many different ways in which you can market an IEO. You can adopt various marketing tools and techniques to market your IEO project. Here are some common marketing strategies adopted by entrepreneurs to promote IEO.

• Referral programs
• Cross-marketing (marketing along with exchanges)
• Influential Marketing
• Market-centric Promotion
• Press Releases
• IEO Aggregators
• Bounty Campaigns
• Social Media Marketing
• E-mail Marketing
• Airdrops
• Content Marketing
• Marketing Website
• Mouth Publicity

These are a few techniques and strategies used in launching most of the successful IEOs.

Importance of Marketing for IEO

As we have discussed before marketing plays a crucial role in the success of an IEO. Here we are going to discuss the importance of marketing for IEO projects.

Network of followers

When you market your IEO, people get to know about it. All the marketing will create hype about your IEO. If the investors like your ideas, you will gain a large number of followers for your IEO project. It will eventually help you to generate a strong network of followers.

Brand awareness

When you are new in the market, investors will judge your project and your company. With marketing strategies like influential marketing and press release, you can turn these judging investors into potential investors. It also makes people aware of your brand. Marketing increases brand awareness among investors.

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The race between IEO and STO and why is the latter better

 

What is an STO?

STO stands for Security Token Offering. Like ICO, STOs are issued to raise money for the business. However, these security tokens are backed by real assets, i.e. equity, debt, loans, funds, etc. STO is a blend of ICO (Initial Coin Offering) and IPO (Initial Public Offering). It was established as a secure form of raising funds after ICO suffered from frauds and scams. In early 2019 STOs increased by 135%. 

What is an IEO?

IEO stands for Initial Exchange Offering. It is an ICO done through the exchange. Instead of issuing the tokens directly to the investors, tokens are listed on exchanges for the investors to invest. Investors can instantly buy tokens from exchange using the funds stored in their exchange wallet. It is more secure than ICO, but there is no regulation. IEO came into action when ICO started facing a downfall. Binance was the first IEO cryptocurrency exchange.

Advantages and disadvantages of STO

Let’s read about the benefits and drawbacks of STO to see if it is better than IEO.

Advantages

• Regulatory Compliance: It is one of the main benefits of STO. It is compliant with regulations. Unlike many other ICOs which faced cease and desist orders in the US, STO just needs to file for exemptions with the SEC to keep going.
• Safe: As STOs are regulated, there is no chance of fraud or scam from new investors. It is safe to raise funds and invest.
• Transparency: There is full transparency in STOs. The investors can see all the tokens that are issued. The investors can safely invest as there is transparency in STO.
• No entry barrier: There are very fewer entry barriers in STOs compared to IEOs. IEOs requires a very long procedure to issue shares. There are many parties involved. Lots of expenses are incurred in the IEO. Whereas STOs are easy to raise funds without any barriers.
• Flexibility: STOs provide flexibility in running the business. You can have complete control over the business and run it accordingly. The security tokens can also be traded after the initial selling is done. It increases liquidity.
• Global Investors: As the token standards are universal, they can be traded all around the global. It increases the number of global investors as there are no restrictions. It is not at all time-consuming, which makes it even better. The funds can be easily liquidated by investors.
• Fractional Ownership: Tokens allow the security asset to be divided into smaller units, thereby enabling fractional ownership. It also makes the token easier to transfer.

Disadvantages

• Complex Compliance: Compliance can become a significant hindrance as the process becomes very complex. It has to follow the same compliance as an IPO which makes the process complex and increases legal risks.
• New Market: STO was launched in 2018, so it is fairly new. Also, the market in which STOs are issued is quite new. There can be long-term risks associated with it. New rules and regulation can be introduced, and a lot can happen in a new market.
• The platform needed to manage tokens: STO needs a digital platform to be run. Also, the tokens need to be managed through that platform. It needs a whole setup from where the funds can be raised, and tokens can be issued. 

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Ways in which documentation drafting impacts your IEO Project

 

Ideally talking, a blockchain project’s whitepaper is drafted and refined by the project team. This isn’t contrite; after all, nobody will comprehend how to enunciate the privileges of your project better than you would. However, many projects slump by only letting themselves to observe the whitepaper draft before making live to the audience.

To make sure that your whitepaper is up to mark, you must consult with external specialists in the cryptocurrency market. They will assist you in making revisions and noticeable modifications to your whitepaper, and ensure that people see your project in a positive light.

This doesn’t merely cover your whitepaper, though; this can pertain to any official documentation and press release that you would put out. With considerations to the whitepaper, information that commonly needs to be inspected incorporates the technical features of the project, how your token w.ill be operating, project structure, etc. Cryptocurrency exchanges are inclined to put your project through a highly austere due diligence process before affirming you for an IEO.

The rationale for this is that the exchanges reveal themselves up to a lot of vulnerability by driving and promoting projects through their launchpads if they deem your project as a bust, or worse if they consider it is a scam, it is questionable that they will jeopardize their reputation with their clients simply to host your project.

White Paper

Starting now, you will encounter a list of the critical things that you should have in order before ascending for an IEO:

• A Breakdown of Your Team
• A Competent Team
• A Record of your Competitors and Risks to your Project.
• A Detailed and Clear Description of How your Model Will Work
• How the Project’s Financial Model Works
• Tokenomics
• Your Target Market

 As a precept, to decrease the risks of a company intending to launch IEO projects, unique quality, expert, and thorough illustration of all documentation (including corporate) of both the future project and the company is needed. This step will acknowledge summoning in compliance with the formal and technical elements of the project with statutory requirements.

As part of the administration of IEO projects, IEO Consulting Services administers extensive services for the composition and preparation of the complete assortment mandatory for registration and assuring the continued prosperous execution of the company documentation.

Besides, ieo development services assist in the process of KYC (Know Your Client). KYC is one of the global control standards, the essence of which is diminished to the method for classifying and documenting clients.

The main elements of White Paper are:

• Commercial and technical specification of the nature of the project
• Characterization and evaluation of the market on which the launched project is aimed
• The account of obstacles that the project aims to solve
• The main advantages of the plan (platform)
• Purpose of the token within the project, etc.

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Raising Funds with IEO’s – Risks and liabilities involved

 

After the collapse of ICO (Initial Coin Offering), IEO (Initial Exchange offering) have become quite popular in the cryptocurrency world. In IEO, the tokens are not directly sold to the investors. The tokens are listed on exchanges for the investor to buy. It was introduced to reduce the risks of fraud and scam, which was the reason for the downfall of ICO.

Parties Involved In IEO

Unlike ICO, there are three parties involved in IEO. They are as follows,

• Token Issuers: It is the issuing company who wants to raise money for their project. It can be a company or an individual. They have to list their tokens on exchanges so that the investors can buy the tokens and help raise funds required to start the project. Most of the projects are start-ups as there are no restrictions on raising funds.
• Exchanges: They are the link between token issuers and investors. In ICO, there are no exchanges. The exchanges list the tokens and help the issuer to raise money. Most of the work is done by exchanges. They receive listing fees in return. Exchanges make the whole process much safer for the investors and reduce the burden of the token issuers.
• Investors: Investor is those who buy the tokens which are listed on exchanges. The investors have to make the payment in the form of cryptocurrency. Investors prefer IEO, as it is safe and trustworthy. They have to fill in KYC forms with the exchanges in order to buy the tokens.

IEOs are trustworthy but not entirely safe. There are various risks and liabilities involved in raising funds with IEO.

Risks and Liabilities faced by the Token Issuer

Many people think the issuing company is always safe and less prone to risks, and it is still the investors who face scams and frauds. But in IEO, even the token issuer face various risks while raising funds. Some of the risks and liabilities faced by the token issuer are,

• Listing Fees: If you think you can simply list your tokens and get funds, you are absolutely wrong. The token issuer has to pay listing fees to the exchange in order to list the token. Sometimes when the project is unable to raise funds, the token issuer has to bear the loss of listing fees.
• Marketing Fees: The token issuer has to pay an additional marketing fee to receive IEO development services when they need additional marketing or consultation or  different IEO solutions. Sometimes when the project is unable to raise funds, the token issuer has to bear the loss of marketing fees.
• No Guarantee of success: Even though the exchange helps the token issuer in raising funds, there is no guarantee that the goal will be achieved. Exchanges don’t guarantee the success of the project. In the end, the token issuer is the one who will incur the loss.
• Regulation issues: IEO face various regulatory issues. It has evermore been a subject of deliberation. The token issuer has to be very careful while dealing with regulation as one slight slip up can lead to legal issues. Many people say that it will face the same regulatory issues faced by ICO.
• Hackers: Nothing is ever foolproof. Hacking is not a new thing in the cryptocurrency world. The fact that everything happens online put everything at a higher risk. Although it is difficult, hackers can still hack the system and commit theft. The issuer has to face the consequences in the end. 
• Legal Issues: In some countries, there are different laws pertaining to IEO, hence the issuer has to be very careful while targeting the market and audience. 

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