13 Jul 2021 · 2 min read

Why Do Projects Need an IEO?

The text below is an advertorial article that was not written by Cryptonews.com journalists.

IEO

Cryptocurrency and blockchain project funding trends have been changing over the years. While Initial Coin Offering (ICO) dominated the scenes at the initial stages of crypto investments, the last two years have seen IEOs taking over after the collapse of the former. Many crypto project founders are today raising capital for their new projects through IEO. The IEO took over the scene of fundraising after ICO’s massive scamming cases. But why do these crypto projects need an IEO?

IEOs have been proven to provide massive benefits to investors and projects alike. While project founders can access more funds from a wide range of investor communities on the platform, investors feel safer that their funds are will be well used as indicated in the company blueprint. Other than raising funds for startups, IEOs have also proven quite beneficial to traditional startups since they do not need to understand the blockchain. Moreover, IEOs are much cheaper and simpler in the long run than IPOs.

There are specific incentives that can drive founders to look into an IEO as an alternative to raising funds. These incentives are based on the size of the companies.

For a project with limited budgets, IEOs often come through in helping them raise funds. For example, when a project already has a stable cash flow, owners may decide to raise funds for a new project tied to the old one. They do not need to sell the original project to raise funds but can issue an IEO to attract investors. The availability of investors on the exchange will enable the owners of the project to raise funds to start a new project. The investors are assured of the legitimacy of such a project based on the success of the previous one.

For the initial and medium stages startups, an IEO will help in the following:

  • They save the overhead costs of creating their own smart contract
  • Free marketing on the exchanges that already have a large pool of communities of investors.
  • Easy and quick targeting of token/coin buyers and investors on the platform
  • Easy access to the international pool of investors, hence avoiding the domestic regulations, such as those in the United States.

For large projects run by big crypto companies

  • Easy access to quick liquidity
  • There is little or no bureaucratic barriers
  • Opportunity for smart-hedging of risks
  • Low investment barriers
  • Better than Initial Public Offering (IPO) in terms of cost.

ExMarkets is a leading exchange platform and the world’s most active IEO Launchpad that allows founders or innovators to list their IEOs and raise funds for their projects. The platform has a large pool of ready investors who are willing to walk with projects they feel fit both of their short-term and long-term goals. The exchange has a special team to review your project and ensure it passes the most important criteria investors are looking for security, which are the security of their money and the project growth prospects. You can join the world’s most active IEO Launchpad and access investors all over the world to increase your project liquidity.