slide 1: Initial Exchange Offerings IEO- the evolutionary
crowdfunding model-MLM Software company
malaysia
What is IEO
IEO Initial Exchange Offering is an evolutionary crowdfunding model. IEO’s
emerged as a secure fundraising system where ICO’s failed to succeed. There is a
main difference between ICO and IEO. In the case of ICO’s the company directly
approaches investors to raise funds whereas in IEO the company approaches a
cryptocurrency exchange.
The exchange lists the project after a deep evaluation of the project. The exchange
further proceeds with promotional activities to make the IEO public.
How IEO works
The company or startup approaches a crypto public exchange with the project. The
details about the project will be detailed in the white paper.The exchange will
evaluate the project in order to ensure authenticity. Otherwise it will affect the
reputation of the exchange. After whitepaper screening the exchange and the
company mutually make an agreement.
The projects are then listed and launched in the exchange ensuring no scam is
involved. The exchange will take the responsibility to launch and move with
promotional activities. The project team will also make necessary contributions in the
marketing side inorder to make fundraising process successful.
slide 2: The company or the project team has to pay a fee to the exchange one at the time of
listing and when a certain number of coins are exchanged. At the same time the
project team can save marketing or promotional expenses as most of the marketing is
done by the exchanges itself.
The ICO: An Evolution of Crowdfunding
The Initial Coin Offering ICO was a leap forward in terms of access. Anyone in the
world who had an internet connection and some crypto asset was able to participate
in an ICO.
Participants in an ICO were able to own a share of a crypto network which was
basically a startup in a completely new technological arena with very high potential
returns if the token appreciated in value. These coins or tokens were also provably
rare could be owned and exchanged without restriction and could be tied to how that
network functioned.
slide 3: In the past investing in a startup was limited to only venture capitalists that had a
strong network and enough capital to participate in venture capital funding rounds.
Furthermore being the first to own an exchangeable share of a business meant
participating in Initial Public Offering IPO which is an initial sale for a company
on the stock market. IPOs are limited to certified investors in certain jurisdictions.
The ICO was a completely new innovation in that anyone could participate in a sale
that was like a combination of an IPO and a venture capitalist funding round.
Benefites of IEO
• A very less time needed for token sales as the exchange makes the token public
and promote it.
• The exchange conducts an easy KYC/AML process and it will help the
company as well as the investors.
• The exchange conducts due diligence on the company and ensure the
authenticity of the project.
• When tokens are listed in a popular crypto exchange a large number of users
will have access and the fund can be easily raised.
• An investor will find it easy to invest in an IEO as he/she just needs to start an
account on the exchange and undergo a KYC process.
• The company will go through a due diligence process and hence the investor
need not have to worry about the security.
slide 4: • The company will get access to a large user base of the exchange platform and
it helps in a good token sale.
• Exchange can get access to a new range of coins and thereby expects an
increase in the revenue.
Thanks for reading our content. For more details kindly do visit our website
mentioned below
MLM Software Company Malaysia
http://mlmsoftwarecompany.com.my/
Level 8 Tower 8 Avenue 5
The Horizon Phase 2
Bangsar South 59200 Kuala Lumpur
Federal Territory of Kuala Lumpur
Malaysia
+60392121885.