One does not require any inheritance or large bank balances to begin a business in 2019. The only ingredients guaranteeing success is smart work and innovation. The financial aspects are taken care of through angel investment or venture capital. With the introduction of blockchain technology, the process of raising funds has been further simplified.

Financial instruments such as the <a href="https://www.cryptoknowmics.com/icos">Initial Coin Offering</a> (ICO) have helped in decentralizing the entire market. Entrepreneurs no longer have to directly approach investors and can also ignore unnecessary regulations to speed up the funding process.

Unfortunately, this lack of regulation gave a free hand to scamsters who have duped investors to the tune of millions through fraudulent projects. This trend led to a steep dip in the trust levels in the ICO model, with many giving it a pass thereby hurting the prospects of genuine entrepreneurs.

But, the blockchain sector is continuously evolving and churning out solutions to existing problems. One such solution is <a href="https://www.blockchainappfactory.com/cryptocurrency-exchange-software" target="_blank" rel="noopener">Cryptocurrency Exchanges</a>. It addresses the issues of trust and accountability by leveraging cryptocurrency exchanges as reliable intermediaries.

To ensure quality, cryptocurrency exchanges organize a variety of checks before approving and listing projects on their platforms. These checks include KYC/AML and other compliance, the identity of the entrepreneur, the veracity of the business design, and more.

Meanwhile, the investors are assured that malicious individuals do not take them for a ride. Most exchanges also offer IEO token holders with greater liquidity by offering multiple trading options on the platform. However, the only downside of IEO projects is that the entrepreneur cannot list their token on any other platform.

Finally, startups benefit from instant access to a large investor base hosted on the exchange. Moreover, the exchange offering IEO services also help the entrepreneur with crucial factors such as marketing, token creation, and smart contract management.

So, how does an entrepreneur identify a good IEO exchange? The process is quite simple. The key components to focus on have been listed below:
<ol>
 	<li>Exchange Ranking: The success of your IEO project is dependent on the popularity of the exchange. This is because they host a large number of users and association with their brand name will help improve the credibility of your project.</li>
</ol>
At the time of writing this article, the top five exchanges offering IEO services are:
<ul>
 	<li>Binance</li>
 	<li>OKEx</li>
 	<li>DOBI Exchange</li>
 	<li>Huobi Global</li>
 	<li>Bit-Z</li>
</ul>
<ol>
 	<li>Listing Fees: Most exchanges provide a variety of packages that suit different budgets. Hence, it is wise to check factors such as commission rates, services covered in the package, refund, and cancellation policy, among other things.</li>
 	<li>Regulation Process: Another factor to watch out for is the compliance exercise organized by the exchange. Some platforms host lengthy processes that may prove counterproductive to your project and business timeline.</li>
 	<li>Marketing Services: While exchanges give your project direct access to their registered user base, it may not always translate into instant investment. Multiple factors such as promotion duration, social media presence, and more play an important role in attracting investors to your platform.</li>
</ol>
Over and above, the entrepreneur should exercise due caution and do proper research before proceeding with any exchange. It helps to check reviews and testimonials from other startups before investing any capital.

When it comes to the success stories associated with <a href="https://www.blockchainappfactory.com/initial-exchange-offering-services" target="_blank" rel="noopener">Initial Exchange Offering</a>, there are many. In fact, this funding model has overwhelmed many experts with its ability to raise funds in record time. Case in point is the <a href="https://fetch.ai/">Fetch.AI</a> IEO that managed to reach its hard cap target of $6 million in only 22 seconds after the project went live. Another example is that of BitTorrent. This internet company reached its hard cap of $7.2 million within 15 minutes. There are many more similar business stalwarts that leveraged the IEO process to meet their investment targets.

IEOs are here to stay and their influence in the crowdfunding circles is expanding. Both entrepreneurs and investors are appreciating the advantages this model offers. This tendency is in turn reciprocated with the growing number of exchanges introducing exclusive IEO platforms.

What Makes IEOs The Next Big Thing in Crowdfunding?

Patricia Dixon works as a Business Analyst at Blockchain App Factory. She has a master’s degree in history but prefers to archive and examine all things digital or technical. During the weekends, you may find Patricia exploring the countryside or reading Japanese manga at the local coffeehouse.

What Makes IEOs The Next Big Thing in Crowdfunding?

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