With an exciting idea in an innovative mind, new products are potentially born. For every new unique cryptocurrency project, the crypto space expands. Over the years, tons of new projects have emerged to proffer solutions to real-world issues through products built on decentralized and distributed networks.
Bringing a new cryptocurrency project to life sounds easier than it could really get. With an average of over five hundred (500) new cryptocurrency projects emerging yearly and aiming for prominence in the crypto space; survival is a struggle. This struggle is even more intense for infant projects. while a feasible idea and a practical use-case are paramount to the survival and success of new and existing projects, a couple of other factors contributes to this.
In our capitalist world, financing the process of bringing new ideas to life follows the due process of fundraising and hunting for start-up investors. Successful fundraising not only generates enough funds for new projects but also generates the initial set of believers who have faith in the ambitions of the project founders and the potentials of the idea they have invested in. Fundraising thus goes beyond gaining financial buoyancy to push a new idea. Bityard adopted a strategy of steady growth in this struggle. Not to make illegal money, but to put the interests of users first place.
For cryptocurrency projects; Public Initial Coin Offering (ICO) and Initial Exchange Offering (IEO) presents fundraising opportunities. Prior to the advent of IEO, public Initial coin offering has been the principal means of fundraising for new projects.
Thanks to Ethereum’s smart contract technology and other blockchains with similar features, new projects generate a cryptographic token. To raise funds for the development of this project, project founders offer a percentage of its total token supply to investors at a presumably low price in exchange for funds. Through Public Initial Coin Offering, project founders directly sell these tokens to investors.
However, due to series of infamous events; public ICOs, marred by scams, contract breaches, and project failures have become unreliable for investors. For project founders, fundraising through public Initial Coin Offering (ICO) has also grown tedious. A project’s success in raising funds via Public ICO solely depends on its ability to properly market its idea to the general cryptocurrency community and possibly, the larger world outside it. This would take special marketing skills…and a bit of luck.
In the absence of prominent affiliates or partners, new projects face the hurdle of creating assurance for intending investors and proving beyond doubt, the feasibility of their theories and the importance of the utility they hope to create. Even when properly done, public ICOs hasn’t been very efficient for project founders. New projects still face the challenge of pushing their product to the market after a successful Public ICO. Public ICOs leave new projects at bare. Most new projects struggle despite having conducted a successful ICO and raised tangible funds. A good percentage of new projects have also failed to survive this struggle while many more have been limited in their potentials. Either way, this spells grave loses for initial investors. These struggles led to an outbreak of ICO scams.
Initial Exchange Offering (IEO) has grown since then as an alternative to Public ICO which continues to be riddled by its shortcomings.
Initial Exchange Offering is basically a form of ICO conducted by cryptocurrency exchanges. To conduct an IEO, new projects partner with exchanges to oversee its token sale. In contrast to public ICOs, this exchange provides a platform for the token sale and contributes to the marketing of the new project as well as its token sale. Depending on the agreement between the two parties, the exchange could handle the majority of the token sale workload. This lessens the burden of fundraising for the project founder(s).
IEO solves quite a few fundraising points. Along with the aforementioned, partnering with a good change additional assures buyers of the legitimacy of the brand new mission. With the status of the change at stake, it is vitally unlikely that it could associate with shady new tasks for fundraising. Exchanges through IEO simplify token providing and fundraising applications for brand new tasks.
Making use of sure cautions and rules, exchanges additionally make this course of safer for buyers who’re additionally their clients. This mission shall be instantly listed on the change on completion of the IEO. The mission’s life within the crypto area will get off in a trendy vogue. IEO is assumed to salvage the fundraising course of in cryptocurrency. ‘Exit scams’ by tasks who carried out an IEO is a uncommon story.
Nonetheless, it’s by no means all shades of fine. IEO, regardless of being a masterpiece additionally has its personal shortcomings. In distinction to Public ICOs the place tasks are free to promote their token to any purchaser; token sale one exchanges (IEO) are solely open to merchants on the precise change. Relying on the universality of the change and consumer rules, the token buy is proscribed to a sure set of individuals. For exchanges whose providers should not obtainable in sure geographical places, buyers in such places shall be unable to take part within the preliminary token sale. Exchanges introduce one other degree of centralization to preliminary token sale and fundraising applications. This centralization additionally improves investor safety, however nonetheless, its limitation is tangible.
IEO tasks discover it comparatively simpler getting listed on exchanges than public ICO tasks. However why would exchanges think about itemizing new tasks.?
Whatever the fundraising course of, the itemizing course of for each mission is principally the identical. Some reservations may exist the place the mission has a particular relationship with the change. Other than conditions like this, issues for listings is a uniform course of for many exchanges.
A mission’s status speaks for it. A great mission is on the trajectory for spontaneous success…most occasions. The connection between exchanges and tasks listed on its platform is mutual. A shady mission dampens the status of an change. Respected exchanges are intelligent to refute approaches by shady tasks. Transparency is a crucial characteristic thought-about within the means of the token itemizing course of.
A mission which satisfies this criterion is additional assessed for its fundamentals and vulnerability to rules. Safety tokens may face hardship in itemizing on exchanges because of rules that bind them.
Market viability and userbase can also be thought-about. Nonetheless, for a mission which satisfies the factors talked about earlier, the possibilities of getting accepted by exchanges develop larger and are anticipated to achieve extra userbase and develop in market efficiency with time.
IEO tasks discover it simpler to get listed on different exchanges primarily as a result of they already happy these standards earlier than their fundraising proposal was accepted by their mother or father change.
It’s value mentioning that Bityard will even wish to launch BYD within the close to future. They’ll put the consumer’s account security to be their first precedence and that’s why it took them so lengthy to not publish ICO and IEO but.
Bought a token/coin to listing? Bityard is a brand new era cryptocurrency change with thrilling options and a big userbase.