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In the previous article, we looked at how to get an IEO project launched, what marketing activities are needed before and during the campaign, and where and how to apply for the exchange.
I get lots of questions from the projects regarding possible caps, number of IEO rounds and suitable exchanges.
So in this article, we will review the main strategies for running an IEO.
The number of exchanges that offer to conduct an IEO on their platforms is growing every day. Also, the number of projects that choose this method to raise investments is growing. This market situation creates the need to choose different strategies based on the selected exchange and its volumes, as well as on the goals and hype around the project.
Today, we will highlight the main current strategies that we advise our customers who are going to start their IEO campaigns.
To begin, any project needs to determine which part of the tokens will be sold on IEO. This can be either a full part allocated for the tokensale or partial with the sale of another part during private or public rounds.
Anyway, this part of tokenomics should be thought out carefully to make it realistic and as investment attractive as possible.
Further, depending on the hard cap for IEO, there are several strategies:
1. One round of IEO on one exchange
Such a strategy is suitable for projects that have either a small hard cap (up to $1–2 million) or who have an agreement to be launched on superstar exchanges that held major IEOs (first of all, of course, Binance).
If your hard cap for IEO is more than a million dollars and you realize how difficult it is at the moment to get on such overbooked exchange like Binance, one of the next strategies will suit you best.
Otherwise, there are big chances that you will not reach the hard cap, which in turn demotivates many potential investors from investing in your project.
2. A Few Rounds of IEOs on different exchanges
This strategy has already proven itself for several reasons.
First of all, many projects have a small budget for conducting marketing activities during the preparation for IEO and for the listing fee of the exchanges. In this case, it makes sense to set a small cap (up to 500,000 USD) for the first round on a medium sized exchange. And then to re-invest part of the raised investments in the next round for a larger cap on a larger exchange.
Secondly, many exchanges are geographically oriented to a specific targeted audience. There are exchanges with more European investors, there are exchanges, where the main audience is from Asia and so on. In this regard, by breaking IEO into rounds on different exchanges, you will be able to cover a larger number of investors from different regions and markets.
3. A few rounds of IEO on one exchange
In this case, the key strategy is that the rounds occur on the same exchange (preferably, at least medium-sized) and follow each other.
In the first round, the price of the token should be lower than in the second. With the successful completion of the first round, the second will attract additional attention, and since IEO itself assumes more time to conduct, additional marketing activity may attract additional investors.
Otherwise, this method is very similar to the previous one and does not exclude the possibility of additional rounds on other exchanges.
4. One round of IEO on different exchanges at the same time
If the budget allows, it is possible to launch a round (one or several) simultaneously on different exchanges. This will give the greatest coverage and usually there is a lot of hype around such projects.
The price of the token during the round should be the same on all exchanges.
5. Pre-IEO
Before conducting one or more rounds of IEO, it is also possible to launch the so-called Pre-IEO. Basically, this is an ICO in the classic sense when you sell the token yourself on your platform, and the upcoming IEO creates motivation for potential investors to buy the token at this early stage.
Nevertheless, for this strategy it is necessary to mention two nuances:
- the Pre-IEO marketing campaign lies entirely on the project, and
- it is necessary to think carefully about the token price and tokenomics of the project, as imbalances in one or the other direction can make even a very promising project unattractive from the investment point of view (actually, it’s necessary for any chosen strategy :)).
Conclusion.
With the increase of projects that plan to start its IEO campaigns and exchanges, that offer their platforms for launching, the number of strategies and various marketing tools will grow.
The main task in this market is to keep a finger on the pulse and to adequately understand the situation that is currently occurring. Then you can choose the right strategy and the exchange that meets the current goals of the project.
If you have any question or want to launch your IEO — you can alway contact me on Telegram or LinkedIn.
Sergey Baloyan is a co-founder and CBDO of X10 Agency (one of the leading STO/ICO/IEO agencies globally), entrepreneur and public speaker. Participated and advised more than 30 ICO/IEO/STO projects as Marketing and Investment consultant, professional CMO and CBDO. Obsessed with digital economy, AI and fintech.
Innovative Strategies to Launch an IEO was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
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