An Initial Exchange Offering as its name suggests, is the process of raising funds, handled by a cryptocurrency exchange. The token issuers pay a listing fee to the exchange that is working on behalf of them. One of the major benefits of depending on an exchange to issue your tokens is the fact that they already have an existing user base. Moreover, if the exchange is a reputed one, there are numerous potential investors that will come across your coin.
The tasks of KYC/AML is performed by the exchange. On the whole, the token issuer will only have to pay for the exchange’s services and watch their funds increase. An IEO is a huge relief for companies who do not want to manage the whole process of issuing tokens and raising funds. Need some guidance to launch your IEO? There are few companies that specialize in blockchain-based services and can help you understand how to proceed.
Blockchain App Factory has been in the industry for years. They could definitely provide some assistance.
What is an IEO? Why are token issuers looking forward to this fundraising method?
An IEO or an Initial Exchange Offering is crowdfunding that is conducted by an exchange. In all the previous types of fundraising methods, the token issuer handled the marketing, KYC/AML procedures, token issuance, and the raising of funds. With the cryptocurrency exchange acting as a middleman between companies and investors, the token issuers are free of tedious processes that are involved in fundraising. This gives them more free hands to focus on other crucial aspects of business.
A company can list their tokens on a renowned exchange and as a result, reach out to a large number of investors that are already loyal to the exchange. Are you looking to issue your tokens with the help of an exchange platform? Then before you begin, gain a complete understanding of what it is and how it works.
Blockchain App Factory, an IEO Development company is well-known for its knowledge on the constantly upgrading blockchain technology. Check them out if you need some assistance.
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