A Comprehensive Guide For IEO Marketing 2019
In 2019 IEO marketing or Initial Exchange Offering gained revolutionary attention as Binance successfully launched three different IEOs; all are selling out quickly to record-breaking interest. The last project that is queued this year is Celer. The network has kept waiting for over 30,000 thousand stuck in the Binance queue to contribute.
It is safe to say that IEO brought back to the spotlight with over 50 IEOs being launched this year. IEO help to raise companies’ moderate funds typically up to 10 million USD. It works directly on the exchange portal build on their company websites. The best part of IEO is when the sale concludes; the tokens are guaranteed to be listed on the exchange platform was the IEO was confined.
The conducting process of IEO is quite simple. There are still expenses and other things to consider. Most importantly, you need to know proper marketing techniques to drive a successful IEO. The exchanges cannot do all of the marketing for you.
Here in this article, we are going to break down seven simple tips and observations on IEO marketing to help you on the journey.
- Shorter Marketing Timeframe and Costs: In recent times, the IEO marketing timeframe as becoming much sorter and cost-effective. It allows doing aggressive marketing for 2-3 months to hit the targets, unlike ICO, making it doesn’t need a 4-6 month marketing range to reach the goals. Top agencies usually 50k to 100k dollars for leading up the IEO marketing, but some startup companies offer the same service at a lesser price. Make sure to choose the best reputable agencies that have good track records with their clients.
2. Watch out the Exchange Dilution: when it comes to IEO marketing plans, it is essential to look out for exchange dilutions. By capitalizing on the IEO interest, we can invest more and more on projects to gain lucrative benefits. If you go to the Binance launchpad, you can witness organically generated excitement from Binance to have a successful launch. If you consider for a minute that IEO and ICO can ace the same fate, then you must anticipate seeing exchange dilution by IEO interests. Also, most importantly, the project can do multiple IEOs around various exchanges, and existing ICOs have come back to life by doing IEO.
3. Know that exchanges will only provide basic marketing: As we know that transactions can provide primary marketing perks to IEO exchange. But it is not enough. The basic expose may include social media blasts and newsletters, which will eventually end up in the spam inbox. There is another process of conducting marketing for IEO. It comes along with some expenses, but still it worth it. IEO needs real branding, real marketing for real growth. If you want to start successful marketing, you need a plan that supersedes the fundraising period. If you don’t opt for this, you might risk losing investors and begin from the post-listing, which investors find critical due to price fluctuations.
4. IEOs bring security and limit jurisdiction risk for projects: if you know about IEO, you might be aware of the fact that it has built-in KYC and country limitations witting exchange. For the IEO exchange, it needs a legal opinion from the country of origin from the project. Other risks may include country limitations which will be on the exchange as they are responsible for their user base. This means if you are an IEO founder, you save on both legal fees and KYC hassle. The protected resources should be allocated towards marketing and getting your projects known to IEO. Passive marketing will not bring the desired success and leave you disappointed.
5. IEO doesn’t sell out instantly: if you think that your IEO will sell out immediately, you’re wrong. If you keep track of the statistics, you’ll notice most IEOs do not hit their IEO hard capitals during the period of IEO. Even you offer smaller offering consisting 5-10% of circulating tokens, and these sales are not guaranteed and depends on multiple factors. Some IEOs conduct private sales before an IEO; it will bring up the hype brand named partners with additional investors. Others starts their journey with an IEO and realize how important community, PR, social media, and media are for IEO marketing. If you choose the right marketing strategy and put it into the proper place, you can increase the chance of running a lucrative, successful IEO.
6. Short term token price decrease: Similar to ICOs and other crypto’s, the data collected in 2019 shows an overall reduction of token prices, including IEO. All of the top exchange projects, there are generally secured against early investors. Instead, they are often battling themselves and new token investors. Also, it is essential to note that IEO imposes lockup restrictions for private investors, so IEO participants are mostly protected from imposters. Similar to any other points from the above, a coherent market plan is needed to gain long term investors.
7. Create a Win-Win situation: lastly, IEO right now is at a quality level with exchanges having a through considering or selection process. It is vital that projects willing to do an IEO as an existing brand or some traction that will provide value for exchanges to the token buyers. Exchange value is clear, also new token buyers as to conduct KYC register token and so on. The process will improve the time across exchanges creating a win-win situation for the IEO founders.
Finally, time will tell, but it is still safe to assume that IEO will become more and more apparent soon. Despite the risks, IEO has brought a new spark to the ICO market.