Startups collect millions of dollars in seconds on cryptocurrency exchanges . The new model of crowdsale IEO respects the interests of all participants in the transaction: developers attract investment, users get carefully selected projects for profitable investments, and trading platforms – new customers and high trading activity. Digital-agency BDCenter told how IEO is changing the market and how startups do this.
How IEO Changes the Market
According to TokenData analysts, in the first 3 months of 2019, ICO raised $ 118 million. This is 58 times less than in 2018. Then this figure was $ 6.9 billion. The fading of the HYIP at the ICO contributed to the frustration of investors due to the fall in the cost of acquired tokens and the frequent scam projects.
The new format, IEO, has replaced ICO. The fundraising model, where the exchange acts as an intermediary between tokens issuers and buyers, began to influence the formation of a cryptocurrency market.
IEO increases the number of investors and traders on cryptobirds . A new audience is attracted by a professional audit of projects and a guaranteed listing of tokens on the platform.
Bitfinex, one of the largest cryptocurrency exchanges, recently canceled a minimum deposit requirement of $ 10,000 for users. The company saw that novice traders, who are not yet ready to invest big money, are so much that the total amount of their deposits also allows you to make good money. The exchange has upgraded its infrastructure and is now suitable for a wider audience.
IEO moves bitcoin value . In the spring of 2019, the number of search requests for Bitcoin on Google increased 6 times compared to the same period in 2018. Experts attribute the recent increase in the price of the first cryptocurrency to $ 5,000 to the entry of new capital into the market.
IEO helps create a better product . Developers have the opportunity to concentrate on the project, shifting marketing to the stock exchange. The risk of lack of user interest in trading on top sites is virtually eliminated – every tokenseyl attracted the attention of a huge audience.
Is IEO in seconds the norm?
Already more than 15 exchanges organize IEO. On top platforms, tokensails pass in seconds. Among recent examples:
- The VeriBlock's IEO project on Bittrex, which ended April 2 in 10 seconds, during which $ 7 million were collected;
- sales of LINIX tokens on ProBit Exchange, which lasted only 5 seconds on March 15 with a score of $ 52.5 thousand;
- IEO Paytomat on EXMO, whose members bought tokens for 99 seconds on April 2 in the amount of $ 500 thousand.
At the same time, on some IEO exchanges last weeks and even months. Thus, the VESTELLA tokenail on the Latoken site was held in 2 stages from 4 to 31 December 2018.
Why it happens? The answer is in a recent report Bitwise Asset Management for SEC. It contains a detailed comparison of cryptocurrency exchanges by key indicators: trading volume, the number of visitors, the correlation between these indicators, the value of the spread and the distribution of transaction volumes depending on their value.
Comparing the results, analysts stated: the visibility of bidding was created artificially on 95.51% of the sites. Only 4.49% of exchanges corresponded to reality.
Most cryptocurrency exchanges overstate trading performance. This means that developers should be more careful when choosing sites for project placement.
How startups use IEO to attract investment
The appeal of IEO for cryptocurrency startups is obvious:
- reducing the cost of a marketing campaign;
- guaranteed listing of tokens on the site;
- liquidity provided by increased attention to the project at the stage of tokensil and immediately after the opening of exchange trading.
The success of the team, which creates a quality product and expects to raise funding, largely depends on the choice of the exchange. Ideally, if it is a large stock exchange, such as Binance – in this case, the investment will be collected very quickly.
But what if Binance did not choose your project?
- Analyze other sites.
Experts Bitwise Asset Management noted 10 exchanges that publish accurate information about the turnover. These are Binance, Bitfinex, Kraken, Bitstamp, Coinbase, bitFlyer, Gemini, Bittrex, itBit and Poloniex.
- Do marketing before IEO.
Namely, to collect traffic and potential investors on a pre-created landing page. Five channels that brought the projects BDCenter digital agencies the most investment:
- PR-publications on top resources. This tool forms the public opinion about the product, which affects the investment in the project. Some of the most conversion resources are bitcoin.com, cryptocompare.com, ccn.com, bitcoinist.com, newsbtc.com and forklog.com.
- ICO / IEO trackers. Show users the rating and reliability of the project, as well as inform them about the start of the fundraising and serve as the basis for journalistic publications.
- Cryptocurrency ad networks Coinzilla, PropellerAds, BuySellAds. Also an excellent source for disseminating information to potentially interested audiences.
- E-mail newsletter. 8% of all email recipients who subscribed to news about the project invested in it. In addition, e-mail delivery brought 4-5% of new registrations. This means that users sent received letters from the project to their friends and acquaintances.
- Publication of advertising messages in chat rooms and groups in Telegram.
You can also try retarget in social networks. Of course, if you bypass the moderation: social networks prohibit the advertising of certain financial instruments, including advertising cryptocurrency .
Good results can be achieved with local advertising tools. Analyze what your target audience uses. For example, if in Russia the most popular network is Vkontakte, then it is easier to reach the Russian audience through it.
Summary
Despite the fact that many cryptocurrency exchanges have just started to master IEO, the trend set by Binance shows excellent results and attracts an increasing number of sites and investors.
A project that creates a quality product has more chances to attract investments thanks to IEO. A quick listing of the coin saves investors from the many risks associated with the choice of a decent project.
Publication date 05/02/2019
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