A Closer Look At The Initial Exchange Offering.

Mario

Founder | CEO | Investor

The Initial Coin offering is a fundraising mechanism that allows projects to raise capital via the integration of token-based value speculation and trading, thus elegantly sidestepping the necessity of providing equity to traditional Venture Capitalists. The Tokenomic model shows the dynamic relationship between the created token and the valuation of the project it is connected to. The projects potential will be directly influenced by the fundraising process, and after the ICO boom of 2017 where thousands of companies had success before financial regulations caught up to the technological trading solutions, the industry found itself at a critical junction, evolve or evaporate

Understanding the Initial Exchange Offering and the rapid increase in market activity is vital for a wholesome perspective of the direction and innovation the industry is creating.

Most Exchanges make their profit marking on trading volume, even so, the legally dubious grey area of speculating on the incurred future losses of clients is still, unfortunately, a reality we must deal with both directly and indirectly, as one bad exchange provider can cast a very dark shadow on the legitimacy within the IEO industry as a whole. When the trading volume of 2018 started to decline, ICO Listing Exchanges took parallel to a few companies committing themselves to riding out the market decline and establishing themselves for the future readjustment in the market, or so they hoped.

It became clear at the turn of the new year that ICOs would only become a viable fundraising opportunity with the support of exchanges and funds who could help solve the liquidity-related issues in the market. Several platforms for listing ICO services gained traction, with Huobi Prime and Binance being particularly early on point, followed closely by about a dozen other major exchanges so far.

When the exchange receives the application, they typically follow a strict analytical breakdown of the company organization, assets and Tokenomic model, before an offer is made based upon the calculated probability in succeeding with a listing. Major tokens that are transparent and connected to good value projects with high future potential in product development after the initial raise are only gaining traction, and IEO prices have steadily crept up from the bare minimum and now can be anywhere between 500,000 $ and 1.000,000$. IEO demand is predicted to increase further as we now one year later look forward to guiding the exchanges into 2020.

Our company’s success rate with IEOs is still at 100%, and even though you have my personal guarantee that this of course will not last for ever, millions can potentially be raised in hours of listing.

Once the market surge and media hype surrounding the IEO normalises over the course of this year, larger exchanges with stricter vetting processes, like Binance, hopefully will qualify better long term projects.

Why would an Initial exchange offering make sense?

The liquidity is readily available after the fundraising process, which means that less marketing capital is required, and AML is conducted directly by the exchange which effectively cuts the red tape down to minimum. Exchanges are, as all industries, susceptible to fraudulent activity, and hopefully better pieces of regulation and closer cooperation between serious companies and governmental agencies will strengthen the good work currently being done at eliminating and prosecuting dishonest actors in the market. Growing pains on the exchange plains..

Why IBC Group?

IBC is a company I launched in 2017 along with my Blockchain law firm (IBL) and my Blockchain VC Fund (IBI) with the core focus of helping projects raise capital. Having assisted dozens of projects raise millions since the initial hype, I can honestly say that there’s no Initial Offering Service Company out there that could match the level of experience and knowledge that the team and I accumulated as early adaptors over the past three years. Time, patience and laws of compounding interest seems to apply also in data collection and information analysis, which currently gives us a key edge as we have already been operating in the market for approximately 3 years. We have been on the receiving end of pump and dump scheme proposals, million dollar fundraising campaigns and excellent projects that imploded on market entry. We’ve worked with successful projects before, through and after the ICO hype, and continued to raise capital through Private Placement once the token market collapsed. We’ve been through the STO excitement and the flip sided no hype phase, where everybody wanted to pay us either on a success basis or in tokens that could rarely be liquidated.

IBC is the first large agency to work with exchanges to get projects successfully listed on their IEO platform.

1. We have built very close relationships with teams, managers and owners of the major exchanges.

2. Our reputation has stood the test of time. We have always strived to be above board and do the right thing. I have been in business for a long time, launched many companies and I understand the value of doing things correctly every single time.

3. Exchanges want to launch projects that build a good product to sustain their token price for their users, and when IBC backs a project, this gives the exchange reassurance that the project is in good hands. We will work with the project and management after the IEO to ensure a successful product launch.

Through the past 3 years, we’ve understood the importance of forming partnerships with key players within the industry;

In conclusion,

IEOs are two steps forward, securing investment has not been easier for projects since the ICO hype, and this time the legal risks have been significantly mitigated since the exchanges and liquidity is instant!

The model we have built allows synergy between IEOs, ICOs and private fundraising structures to help a project raise the necessary capital at the lowest cost.

For further information regarding IEOs and Fundraising, make sure to check out my in-depth videos on Youtube.