How can Initial Exchange Offering IEO be helpful for SMEs?

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How can Initial Exchange Offering IEO be helpful for SMEs?

How can IEO be helpful for SMEs?

With a vast disruption of emerging technologies, people have started adopting such technologies. All these technologies have huge potential and impact the social challenges, development of countries and economics. If we talk about SMEs, well, IEO has huge potential to change the game for SMEs. 

IEO is an acronym for Install Exchange offering. It is a kind of fundraising for a company. In IEO or Initial Exchange offering, there is allocation of the token sale, offered in crypto exchanges list. A significant difference between the IEO and ICO is that IEO is conducted by a company to be listed in various platforms for crypto exchanges.  IEO can have a huge impact on business since it provides a huge social and economic boost in various countries. A major advantage of IEO is that it offers a huge number of opportunities for different scales of business.

How does IEO work?

An Initial Exchange offering or IEO conducted on platforms for cryptocurrency exchanges. Also, the process is controlled by the crypto exchange. In this process of IEO, a crypto-exchange raises the fund in the same startup with all the newly issued tokens in the exchange list. A token Issuer needs to do several agreements for issuance, frees and token sales. In this process, the cryptocurrency exchange platform reviews the project and reads about all different terms and conditions, to find out about the project’s authenticity. Once the agreement is drawn between the company and cryptocurrency exchange, a date gets fixed. 

An IEO can be easily traded in a short time. Also, it can be used to induce a stock market that does fundraising. The main idea behind this is to promote an authorized and decentralized fundraising model. IEOs are much more secure than the ICOs since it mints and sends the token to the exchange platform. IEOs are more recommended than the ICOs in several ways.

Different opportunities IEO opens for medium and small business.

  • It attracts people to invest.
  • It is one of the main conditions for the development of investment attractiveness and equity market. It is provided by several exchanges such as tasks. IEOs are easily accessible for various startups, and they need to do this to get the compliance with all the terms and conditions of the platform.
  • A social Impact of Initial Exchange offering or IEO.
  • IEO opens up the great opening of emerging markets, and it contributes to the growth of investments in economies of the country. Also, it gives an opportunity for making the investment to people who live in developing countries. Since many people don’t have any tool for making classical investment, hence they cannot buy bonds and stocks.
  • IEOs follow the concept of making small investments, without considering the size of sum.also it can be spotted from anywhere in the world. Various people who are involved in IEOS get an accessible tool for making huge savings and generating passive income.
  • Also, IEO gives the opportunity to several emerging markets since it opens the door for making the investment and SMEs develop in a greater way than before.
  • IEOS gives a great opportunity to all the markets when it comes to SME development.

Difference between IEO and ICEos.

ICO could be used as a huge asset that can be used to make some good contribution. There are very few ICONS that are real, and many of them are a scam. Hence IEOS are considered to be better than the ICOs. But IEOs have a disadvantage, that commission fees are deducted once the token is sold. For every platform, there are some fees deducted.  Another disadvantage is that it enforces the compliance conditions. 

How IEOS are different From Crowdfunding.

For several economics, IEOs are booster tools. It is used for raising funds for social projects. But it is not applicable to SMEs. Various developing countries do have their platforms.

 for crowdfunding. But there are only a few people who donate. Hence, crowdfunding is not the best investment tool for raising funds for the business.

How should you launch a successful IEOs?

As you know, the cryptocurrency market is growing at a huge pace. Various traditional traders and the public are investing in cryptocurrencies for huge returns.  If you are looking to launch a token using IEOs, then in this blog we will discuss the same.

In IEOs, you must create the best token that will help to create a maximum investment and the rest of the work would be handled by the exchange. Since now there are several crypto exchange networks, such as finance, are offering their platform for making IEOs in an easier way.

In the following section, we will discuss the step by step guide to launch IEO.

For a launch of IEO , you need the following mandatory things. 

  • A realistic business model
  • A token
  • Initial Investors’s buzz
  • A project website,
  • A MVP or minimum Viable product.
  • A use of cutting edge technology or technologies.

Another important step is to find the best cryptocurrency exchange for launching the IEO for SMEs IEO must find the best cryptocurrency exchange that will help to launch IEO is the best way and should have a standard collection of listing fees, conditions and several other details. 

Due to advancement, now it has become easy to adhere to various conditions for each platform. Some of the best IEOs are Finance Launchpad, OK Jumpstart, Bittrex IEO, Probit, Bitnami Launchpad, Huobi Prime, KuCoin Spotlight and many more.

Once you decide all such things, it is necessary to do good research about cryptocurrency exchange for SEO. And if it is good according to you, then you can register and wait for approval on the IEO exchange.

Here are some steps to register IEO.

Step 1: you need to register yourself on the exchange.

 It can be simply done by visiting the application form available on the website. In that form, you can provide all the necessary details like name, email and position. Various other information are also needed like purpose, type, details, project information and much more. Many times these forms are long and complex.

Step 2: once you do this, you need to get it reviewed by the exchange team.

 Once the successful registration is made, the project will be added to the list of all other IEOs. Also, the exchange team will review the project and get into more details. It will check, token readiness for sale, future scope, potential to succeed and also the project development stage. 

Step3: Once your application is approved, the list of payments will be launched.

Well, there will be an upfront fee for including it in the list of platforms. Also, various fees would be charged, such as interest and commissions, from the recurring profits. For more attraction, it is recommended to make the one time payment or annual subscription. A crypto exchange company would help you to negotiate with all the different prices and would try to get the best deal. The IEO exchange would manage all the paperwork.

Conclusion

Cryptocurrencies have evolved a lot in the industry. And one thing is true that it will stay for a long time. Since the technology behind this is quite distrustful. Hence if you want to leverage, in crypto trend, then having an ieo would work. IEOs have huge potential to make a difference in SMEs in terms of attraction for investments.

By |2020-04-13T07:43:28+05:30April 13th, 2020|Business, IEO|Comments Off on How can Initial Exchange Offering IEO be helpful for SMEs?

About the Author:

Sonal Mehta is a Content Lead at Solulab, USA based leading Blockchain Technology, mobile apps and software development agency, started by Ex vice president of Goldman Sachs, USA and Ex iOS lead engineer of Citrix. Solulab help build startups - we are a no-sweat technical partner for early stage entrepreneurs to launch ideas from scratch and for later stage startups to build more quickly and affordably.

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