Launching a fundraising campaign is the first big step of your crypto project’s journey. A few years earlier, you could start an Initial Coin Offering to gather funds for your project. But it’s not 2017 anymore, and both investors and project owners want a safer and better alternative to ICO that will bring more attention to the project while being transparent with investors.
There are two main types of crypto token sales: crypto IEO and crypto IDO.
What is IEO?
An Initial Exchange Offering is a token sale hosted solely by an exchange platform. The exchange is in charge of checking the transparency of the project and its creators and promoting it to the investment pool. Every transaction made during the IEO presale is carried out on the centralized exchange, giving the platform complete control and accountability over a fundraiser.
It’s a good way to raise funds for ambitious crypto projects without taking the burden of KYC, marketing strategies, and smart contract review ‒ the platform will do it all for you.
What is IDO?
While IEO is a completely centralized process, some projects need decentralization in order to simplify the transactions and fit into their financial concept. Enter the IDO ‒ Initial DEX Offering. Unlike with IEO, the crypto exchange platform in this case acts only as a launchpad while all transactions are peer-to-peer. Also, IDO doesn’t require the identification of the project owner or sophisticated background checks.
IDO crypto launch is a perfect option for projects that want to have their independent fundraising strategy while also giving an opportunity to remain anonymous as a project’s founder.
How to launch your crypto project via token sale?
Before your token makes it to the launchpad, it has to go through a few stages. The best outcome of the token sale is when your token gets listed while having good community support. Overall, the journey of a token looks like this.
- Development and testing. Before you set off your project for a crowdfunding campaign, you have to make sure it’s polished enough to look promising. This is why your team has to work on every detail and perform in-depth testing of every system of the project. Payment processing, interface, website, and the paperwork ‒ you want to make sure everything looks good and is ready to represent your idea on a bigger scale.
- It’s time to get investments once your project is set to go public. You can take loans or seek angel investors. Finding an angel investor is a fantastic choice that will improve the credibility of your project. This phase is important for acquiring the community’s trust and social credit in addition to raising resources for expansion. It’s best to apply for IDO or IEO after you have made sure you have sufficient resources. During this phase, you’ll increase your project’s visibility among the crypto community and raise the money you need to take your token to the listing.
- Crypto token listing. The ultimate aim of any cryptocurrency is to get listed on the crypto exchange ‒ the bigger the better. If your token is listed, it shows it has enough liquidity to be there. Most importantly, it’s better to start with smaller tier-two crypto exchange platforms before heading for a big one ‒ this way, you’ll have more time to attract more investments and improve your financial crypto ecosystem. A larger audience can support your initiative and help it advance, and having a smaller but more loyal one is also a huge benefit.
It’s important to note that every launchpad is different: they all have different fees and requirements for a project to launch an IEO or IDO. The best news is, you can start both campaigns simultaneously ‒ a good option for smaller crypto projects. In most cases, all you have to do is fill out the application form, get an interview from the Launchpad representatives, and then come up with a plan and a budget.
All token sales take place on exchanges’ launchpads. For example, P2B Launchpad and crypto exchange offer a full range of services related to token sales ‒ from organizing them to providing you with marketing services.