Launching a successful initial exchange offering (IEO) is never an easy feat, especially if you don’t know where to start. Here, we share a few key things you’ve got to prepare for if you want to hold a successful IEO and help push your project forward.
Good technology matters
If you want to achieve IEO success, your technology or project needs to be of good quality. The blockchain solution should be driven by customer value rather than simple interest. Asking the following questions could help clarify the applicability of blockchain:
- Does the new solution enhance the experience for end customers?
- Does it offer great value to unfulfilled or under-served needs?
- Does it accomplish complete or partial disintermediation?
- Does it improve transparency by digitizing and preserving the provenance of an activity?
While having an enthusiasm for blockchain is sensible, it is important for companies to carefully evaluate how the technology can be used to solve tough business problems when other technologies fail.
Learn to attract VCs
Even with the initial exchange offering, you still need to be able to approach and persuade venture capital (VC) firms to invest in your project. This is because IEOs come with their own share of serious financial risks and legal liabilities that you have to be mindful of. So you’re going to have to talk to several blockchain-based VCs to try and convince them to back your project.
Be ready to innovate and adapt
The blockchain industry is one of the fast-moving technology spaces in the world. The ability to innovate and adapt will hold you in good stead when the market changes and you’re forced to move with it. Otherwise, your competitors will, and you’ll struggle to build traction for your initial exchange offering. That’s the only way to stay afloat in this highly competitive market.
Develop risk tolerance
Blockchain is a high-risk, high-reward industry that’s not for the faint of heart. To gain deeper liquidity, it makes sense to secure a listing in multiple exchanges so you aren’t overexposed to crypto risks. The bottom line is you need to be able to accept risk and always be willing to adapt to a changing market if you want to succeed in this industry.
Invest in community engagement
Growing community engagement on social media involves distributing consistent content that is aligned to your target audience and personas. Cross-marketing with the exchange can also help because the exchange will reach out and educate their users about why your project is awesome, give insights about your promo campaigns, and build the right impulse and FOMO.
Learn how to launch an initial exchange offering at TokenMinds.
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