New Funding Model of Crypto Exchanges Attracts Investors

New fundraising model of crypto exchanges — Initial Exchange Offering (IEO) — has attracted the attention of investors worldwide

Initial Exchange Offering is an unknown type of mass funding among the types of public offerings. Since 2014, different types of Initial Exchange Offering models have been applied and this model has accelerated the implementation of new projects. Blockchain-based projects sell their digital coins to investors to finance their projects with the IEO model.

IEO and cryptocurrency exchanges not only sell new tokens (digital currency) but also list the tokens on the exchanges immediately after the sale ends. Most importantly, it plays a vital role in the active marketing of tokens which are sold on the exchange. Therefore, with IEO, both the exchange and projects work together to achieve greater efficiency and undertake an intermediary between new projects and investors.

It is vastly more beneficial for the projects to rely on the exchanges expertise to ensure that the process between entrepreneurs and investors is safer for both parties. Although most software developers work in the blockchain, they are not stockbrokers. For IEO, blockchain-based initiatives listed on several exchanges operate on a more equitable system that can support projects that are new in the sector and are more transparent than previous funding models like ICO. In the system with the blockchain technology, any action cannot be returned, modified or canceled.
Tokens will be able to reach a wider audience as they have more diverse places to sell than the companies that conduct ICO themselves. On the other hand, customers will be able to access reliable token options from the exchanges they use.

Basic steps of investment on IEO

Research on Public Offering

The use of blockchain technology in daily life increases with new projects. IEO, which is one of the first stages of the projects developed with blockchain technology enthusiasts, is of great significance to projects starting in the investment stage. IEO is one of the best ways for this process to take place in a safe environment. Although this method is rarely used by the projects, we can see how the project can be financed by examining the website and social media channels in order to assess how participatory projects will pass to IEO. The roadmap can be comprehended by reading their white-paper.

Registration on the Exchange

According to research conducted around which exchanges conduct the IEO, it is necessary to consider which cryptocurrency should be accepted. Although currencies such as Bitcoin and Ethereum are the most widely accepted encryption passwords, some swaps can use IEOs to promote their local cards.

After that, the registration process can be completed on the exchange. During registration, KYC / AML verification is important for security, which may take several hours or even days. Therefore, you need to make sure that it is not done at the last minute.

Waiting for IEO Starts

After these steps are taken, the cryptocurrencies are ready to be purchased in the exchange. When the purchase process is completed, the transfer to the user’s wallet as a token will be provided quickly.

Although IEO is a new approach, there is no doubt that cryptocurrencies and exchanges will make it more attractive for a wider market as it continues to grow over time.

ExMarkets and MenaPay Announce They Will Conduct an IEO on 15 March 2019

Blockchain-based new generation payment platform MenaPay announced that it will execute an IEO with ExMarkets. On 15 March 2019, MenaPay’s Token MPAY sales will be available on ExMarkets. Token price will be $0.165 in IEO and accepts a variety of deposit methods such as Ethereum, Bitcoin, Litecoin, Bitcoin Cash and even Fiat. MenaPay General Manager Tolga Odoğlu states: ”we plan to covenant with 20 exchange platforms by the end of February, and at the beginning of June, MenaPay tokens can be exchanged with other currencies on the exchanges. MenaPay General Manager Tolga Odoglu adds that “by the end of February we aim to make a deal with 200 exchange platform, at the beginning of June MenaPay tokens can be exchanged in IEO. I believe that the IEO on exchanges will continue to grow over time and will be a broad market for cryptocurrencies and exchanges in 2019.”

About MenaPay

MenaPay is the first payment system based on blockchain technology in the Middle East and Africa. MenaPay makes payments through the encrypted blockchain network instead of traditional payment methods. It provides a secure and transparent payment network for every user and every aspect of everyday life.

Launched in November 2017, the MenaPay project aims to provide advanced payment services to 420 million people living in 18 countries in the region. MenaPay will distribute 75% of its total revenue to MenaPay Token owners. This sets a new standard for the crypto-foreign exchange sector that goes far beyond the normal level of incentives available to users and investors.


New Funding Model of Crypto Exchanges Attracts Investors was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.