What is IEO?

The Initial Exchange Offer, as its name implies, is held at the exchange platform. Unlike Initial Coin Offerings (ICO), IEO is managed by the exchange on behalf of a startup that is trying to raise funds using its newly issued tokens.

Since the tokens are sold at the exchange platform, token issuers must pay a listing fee along with the percentage of tokens sold during the IEO. In turn, tokens of crypto-startups are sold at the exchange's platforms, and their coins are transferred after the end of the IEO.

The participants of IEO are not sending funds in a smart contract, such as one that manages an ICO. Instead, they must create an account at the exchange platform where the IEO is held. Then, participants deposit funds into their exchange wallets with coins, and use those funds to purchase tokens of the company that is raising funds.

The basic requirement of the stock exchanges for a project

  • 1. Having the MVP of the product
  • 2. Having the basic project documents: Whitepaper, Pitch, Onepager, Takenomics and Tokenomic Page, Business Plan, financial model
  • 3. Having a suitable legal registration for the Utillity token (e.g.: the Estonian jurisdiction, the Maltese, etc.)
  • 4. ERC-20/EOS format Utillity token (not mandatory, but desirable)
  • 5. Absence of previously sold tokens:
  • If there are large token holders – their tokens should be frozen for at least six months after the IEO.
  • The company should not have held the open the rounds of the token sales previously.
  • Number of holders should be minimal
  • The project should not be traded on other exchanges with the volume of tokens exceeding 10% of the total issue.

Key stages of IEO

Key stages of IEO

1. Project Preparation

1. The implementation of the IEO project documentation: White Paper, Pitch, OnePager, project Tokenomics
2. The implementation of the "Business" project documentation: Business plan and financial model
*Including setting goals for the range of funds required to be raised ( SoftCap, HardCap)
3. MVP implementation and commissioning
4. Development/revision of the Landing Page
5. Implementation/download video package of the project (CEO's Interview, video presentation of the project)
6. Issue of token (if there was none before)
7. Freezing of tokens of large holders (if there are any)
8. Implementation of Audits from external companies: Legal Opinion, Smart Contract Technical audit

  • Time constraints: from 2 weeks to 1.5 months (depending on the finished components of the project)

Key stages of IEO

2. Start of negotiations with the exchanges

Selection of the necessary geography of the project (taking into account the overall strategy of the project)
Selection, taking into account the desired geography, exchanges with the necessary functionality and trading volume for the IEO.

Conducting of the initial listing negotiations about:

  • • Presentation of the project and the passage of the Exchange's audit
  • • Identification of available dates for listing on the Exchange
  • • Basic exchange conditions (costs, success fee) for conducting the IEO for our project

  • Time constraints: from 1 week to 2 weeks

Key stages of IEO

3. Strategic session with the project team

Key issues of the meeting:

  • Time constraints: from 1 week to 2 weeks

Key stages of IEO

4. Finalizing negotiations with exchanges

  • Dates, costs/success fee, listing and market making, cross-marketing activities, and other necessary subtleties of cooperation.
  • Signing of contracts and prepayment/full payment (if it a basic requirement)

  • Time constraints: Up to a week

Key stages of IEO

5. Conducting cross-marketing activities according to the agreed strategy

  • Time constraints: Start of the company 2-3 weeks before listing

Key stages of IEO

6. Implementation of fundraising

  • Time constraints: Less than one day

Key stages of IEO

7. Post-IEO market making

  • Time constraints: Long-term, valid all the time of the project

The cost of conducting of the IEO

The cost of the IEO for the team and success fee P&C is considered according to several components:

  • 1. Readiness of the project and project documentation for the IEO.
  • 2. The cost of listing on the exchange/exchanges, the Amount of funds to be raised.

    • Up to $1M – service fee: $50,000.
    • $1M- $5M – service fee: $200,000.
    • $5M-$10M – service fee: $350,000
    • $10M-50M – service fee: $1,000,000

  • 3. The cost of a cross-marketing company.
    (calculation depends on the exchange)

Exchange with the functionality to conduct IEO

Whitepaper - is the main document of the project.

Exchange with the presence of cases/working mechanism:

  • Binance Launchpad
  • Huobi Prime
  • OKEx Jumpsmart
  • BitMax Launchpad
  • KuCoin Spotlight
  • Bittrex International
  • Bibox
  • ZBG Launchpad
  • Coineal Launchpad
  • Launchpad

  • Coinbene Launchpad
  • BGOGO Apollo
  • IDAX Foundation
  • Probit Launchpad
  • Latoken Launchpad
  • Exmarkets Launchpad
  • Bit-z
  • fatbtc
  • Multipl
  • EXMO

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