Best Strategies To Go On Crypto Exchanges With Your Project
The emergence of the initial exchange offering has been welcomed with open arms by those in the world of digital currencies. They offer a more affordable and reliable method for projects to raise funds. At the same time, investors are protected from fraudulent projects since reputable exchanges will investigate the team prior to distributing tokens. It’s in the best interest of the exchange to launch a successful project since doing so can either improve or damage its reputation.
IEOs typically mean more revenues for exchanges. Exchanges that will host an IEO will typically do the vetting process of a project for a fee. They also get fees when the token starts trading on their exchange.
Market observers said IEOs came at a time when cryptocurrency exchanges struggled as digital currencies slumped and cryptocurrency buyers dwindled. IEOs gave them some form of lifeline.
For some exchanges, however, IEOs mean more users for their trading platform and some of them are willing to undertake the screening process of a project even without a listing fee.
HOW AN IEO WORKS
The purpose and functionality of an IEO are likened to that of a middleman in a business cycle, but this time, it pertains to projects. When a project is interested in fundraising, an IEO offers an intermediate user base to contributors, by way of listing the token on its platform. As the symbol is conducted on the exchange platform, the issuers are expected to pay both the listing fees and a certain percentage of the tokens sold during the IEO. The tokens of the crypto startups are then exchanged on the exchanges platforms, and the proceed (coins) are listed as soon as the IEO is over.
To participate, all that a user needs to do is to find an IEO of choice, and then look out for exchanges hosting the crowdsale. When this is done, the next step is to create an account on the crypto exchange platform, complete all the required KYC and AML verification, then fund the account with the acceptable crowdsale coin. That would be all as the last step requires you wait for the IEO to start buying your tokens.
CHOOSE YOUR EXCHANGE
Once you have done all of the necessary marketing, audited your whitepaper and evaluated your business plan to perfection, it is now the time for you to make your decision on the exchange that you will be using to launch your IEO, now that you have the highest chance of success. There are a number of factors to consider when you are launching your IEO. Firstly, you want to try and get a relationship with the largest exchange possible. This is because you want to make sure that your project is being viewed by the maximum number of people possible, this way, you are more likely to get a large number of buyers and sell out of your tokens, allowing you to reach your fundraising goal.
For example, the Binance IEO platform, by the well-known and popular crypto exchange Binance, managed to sell out their first IEO for BitTorrent in a matter of minutes, raising $7.2 Million. It might not always be possible to get hosted by the largest exchanges and to make sure that you end up with an IEO, it is best to pitch your project to a large number of different launchpads.
The most important thing when deciding on your exchange is to also ensure that the exchange you are dealing with is reputable. You should analyze the news in the crypto community to see if the exchanges are involved in any controversy, this way, you can avoid a platform that may indirectly cause problems for your project.
Another factor to consider is that by talking to the various exchanges, you will get an understanding of which exchange you believe would be able to help your project the most, you should always prioritize the best possible working relationship over the biggest name.
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