In the 1-st quarter of 2019, ICOs raised 58 less money than in the same period of 2018, according to research project TokenData. A new favorite of crypto investors is an Initial Exchange Offering (IEO). Most of the recent IEOs have raised necessary funds in a few minutes. Let’s consider what is an IEO and why this funding model is becoming more and more popular.
The main feature of a new token sale format is the key role of cryptocurrency exchanges.
They provide such functions:
Selecting of the promising projects between dozens of startups
Providing marketing by own resources
Distributing tokens among own users
As a result, all sides of token sales are getting benefits:
Crypto startups attract funds and reduce costs. They don’t need time and money to develop smart-contract, provide KYC/AML and care about users safety. Exchanges are taking this part of the job, also covering most of the marketing expenses;
Investors avoid scam and unprofessional teams because exchanges are interested in selecting qualified projects with long-term investments prospects;
Cryptocurrency exchanges attract new users and get new exclusive coins. Also, exchanges sell native tokens that are necessary for taking part in a crowdsale.
Today, own launchpads are already having Binance, Bittrex, OKEx, KuCoin, Huobi and EXMO. Several other exchanges are preparing for entering this prospective market.
Assetum team has evaluated all the benefits of a new fundraising model, and we are glad to announce our own IEO launchpad on Assetum Exchange.
This IEO will use the ATUM token.
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This article was written based on original publication from CryptoPotato.com