2017 was the year that belonged to the ICO and the world found a new way of raising capital. But soon this new way raising capital lost is shine as the regulators started clamping it down as many of the projects that raised money this way went bad and investors lost a significant amount of monies.
With the sun setting for ICO, the blockchain and crypto industry started looking for a better solution to raise capital which was acceptable to both investors as well as dint cause problems with the regulators. This led to the re-introduction of IEO- Initial Exchange Offering.
Today I am going to stretch around the right IEO marketing strategies that one should follow while launching and even prior to launching the IEO.
What is an IEO?
IEO which stands for Initial Exchange Offering emerged in the cryptocurrency market not quite too far from now – it ended as a great success for the Binance company in 2017 when it launched the IEO on the crowdfunding landscape.
You can buy essays on IEOs on PapersOwl if you need more insight into what IEOs mean. This essay will examine the process of conducting and promoting IEO and the various benefits that are attached to the entire process.
What is the Difference Between IEO and ICO?
The IEO is simply the continuation of a project token sale on a crypto exchange platform.
The only requirement expected from the token issuers on this exchange platform is to pay a listing fee with a certain percentage of the total token sold during the IEO. At the end of the token sales on the exchange platform, and the coins are listed on the exchange platform.
Similarly, another difference between the ICO and the IEO holdings is that people who participate in the IEO do not send their contributions to a smart contract as is the case with an ICO, rather, they create an account with the exchange platform where the IEO is carried out. The contributors can then proceed to fund their exchange wallets with coins that they can use for buying the tokens of the fundraising company.
Why Promote your IEO
While the involvement of the exchange does make things easier for the project in terms of authentication, due diligence and visibility promoting and marketing an IEO is still a task which needs some focus.
Although the exchanges do play a part in promoting the IEO there is still a lot of scopes to fill up as none of the exchange based launchpads guarantee the success of your project. There are chances they’ve got other IEOs running simultaneously, as well as other aspects of their exchange to the market. Even if that not may be the case, No one knows the project like the team backing it, and thus, the founding team should have a hand in marketing your IEO.
Points to Consider While Promoting the IEO with the Right Marketing Strategy
As it is been noted that despite the involvement of exchange, the project and its team have to vigilant in terms of promoting the IEO, on should consider the following points in making the reach out better and wider.
Make sure to engage the audience even before IEO launch
One of the major aspects to keep in mind when trying to market or promote the IEO to an outside world is to make sure that there are enough efforts made to engage with the target audience. If the project team, trying to target particular demography or a target market, they should try and do some research into what things are currently piquing the interest of that demographic and try to implement them into the marketing plan.
The engagement exercise could be done well in advance even before the project approaches the exchange. The advantage of this exercise is massive. Once the project approaches the exchange there could be a fierce competition between various blockchain projects to get onto an exchange launchpad. In this case, the exchange too in most likelihood would side with a project which has already developed a very steady, yet effective marketing presence.
Invest in Marketing and Public Relations
Public Relations, in recent times, has been the most effective methods of distributing relevant information about a particular blockchain project to the crypto community. Further to these projects that display their expertise in focused PR activity presumably have got a lot of traction from the community at large. There are high chances that investors may look at the project more favorably and may be more likely to invest.
While there could be many ways to carry out PR activity, one of the most tried and tested methods of generating PR within the crypto world is to write guest posts or submit a press release for your IEO on a variety of different cryptocurrency news outlets. This does not have to actually be about the project; however, it should be trying to disseminate worthwhile knowledge to the community. The ultimate aim of this exercise is that the project team gets a chance to spread value to communication.
Striking the Hype Machine at the right time
For an IEO to be successful, the timing of reaching out to the investor needs to be right. It has been well noted in the cases, previously with ICO’s as well, that if the project hit the markets at a right time with enough hype the chances of its subscription went really high.
A project that portrayed real-life problem-solving capabilities and could create enough hype around it with press releases, interviews, speaking engagements, and any other chance to get its face, name and project in front of potential investors really went well.
Making use of Social Media
Marketing and IEO and the project over social media is one of the most cost-effective and popular ways of generating interest from masses of people. There are also certain social media sites that have a much larger number of cryptocurrency users than others, some examples of these are Reddit, Medium and Steemit.
One of the highly recommended strategies for social media marketing and engagement in the crypto world is to stay proactive long before you plan to actually pitch your idea to an exchange. One way of managing this is to keep posting updates relating to your project, this allows the project team to keep the community interested whilst creating worthwhile content for new readers also.
Another great way of making social media work in favor of the project and naturally grow the online audience is to dive in and start communicating in community discussions. A factual discussion by the project team can actually get investors and the community interested which may lead to people subscribing the IEO.
Do not let go of the post IEO- phase
The project team needs to have a plan and continue its marketing efforts even after the crowdsale ends! This would actually help in building a great community and may be helpful if the project is running multiple, back-to-back IEOs on different exchanges. Either way providing regular updates on development, partnerships, and other milestones beyond the money raising exercise builds in investor confidence which could be healthy for the project in the long run.
Point to Avoid While Promoting the IEO
While we have seen what is necessary for promoting an IEO, it is also necessary for one to understand what needs to be avoided. One needs to understand that running an IEO is not an easy exercise and precautions are necessary at every stage to make the IEO successful. Following is the list of a few avoids.
A large number of Advisors and employees
While advisors and employees provide strength to project capabilities, there is no reason to have 20 advisors and 30 employees when the project still does not have a running product. Especially in the crypto world, the advisor culture is approaching a ridiculous stage and many projects just built an army of advisors even without clearly defining the roles they play in the development of projects.
Promising over ambitious returns
With ICO’s failing, the times where the project could fool investors by telling them they will get insane returns are over. Investors are vigilant and so are the regulators. Any fake promises could just make things for the project and its credibility could just tank.
Buy Social Media Followers to show “fake” interest
Buying followers on Social media to show the popularity of the project is a fundamentally wrong exercise. While the project could show the quantity, the quality of these followers may not be able to add value or contribute to project or community development ultimately surfacing the truth.
Tools to Promote an IEO
While there could be any number of strategies to promote an IEO there are certain documents/tools required to implement these strategies. Following is the list that every project needs to have irrespective of what every strategy is being implemented.
Simply the Idea and Verbiage
While it is important to put forward the best possible information via all marketing and PR channels, the project team should try to explain their idea in simplest form understanding that not all investors are aware of the technical details and jargons. If an investor doesn’t understand the project in all probability he will decline investment.
Comprehensive yet simple Whitepaper
The whitepaper is prepared by a project prior to launching a new currency. It details everything investors to need to know about the currency before making up their mind if they want to invest, purchase or use it. This forms the premise of investment and hence it should be comprehensive and should cover all necessary point that an investor needs to know to communicate to him in the simplest way.
Strong and Secure Website
The website plays a very important role in a project’s life. It is a direct bridge between the investors and the project to communicate as there is an update. An HTTPS website shows the visitors that the website is secure. This is also important for SEO, and for your potential investor’s confidence.
A blog is a necessary tool for the project to generate organic traffic to the website, improve branding, and give value to the crypto community’s personal touch provided by the project. Medium has been a great source and generates a lot of traction in the crypto world. The project team will need to make sure that there is content writing discipline and schedule. The blog should be about the content that people want to read and not content that only speaks about how awesome the project is and how it is going to change the world with your idea.
While it is recommended to hire a specialist cryptocurrency marketing company to assist a project with its PR and marketing, the project team needs the know-how as to how the project is promoted. If the team has a good product, have marketed it efficiently and have partnered with a popular and effective exchange then the IEO will definitely be a hit.
- Introducing MetaWars: A Strategic Blockchain-based Game in the Metaverse
- CENNZnet Celebrates Hackathon with Gitcoin
- Webcams Site, BongaCams, Becomes Next Major Player to Accept Dogecoin
- Twitter Announces Big NFT Plans as Bitcoin ($BTC) Tipping Goes Live For iOS Users
- Kazakhstan Might Have to Shut Bitcoin ($BTC) Mining Operations, Here’s Why