Crypto currency has revolutionized the process of fundraising. Last year, the main method of collecting funds was ICO or Initial coin offering. As for today, the situation has changed significantly. This is partly due to the fact that almost 80% of ICO-projects turned out to be a scam, in accordance with the Statistic Group research. At the same time, legislative regulation in most countries hasn’t reached a new level and investors are still not protected from fraud. But since the need for funding has not disappeared anywhere, startups today are going in two ways. The first is the private placement when the project collects the necessary money in a closed mode. This implies a rather high initial interest in the project.

The second way – an agreement with the exchanges for the Initial Exchange Offering or IEO, which revolutionizes startup fundraising by providing more transparency and access to a broader investor base.

Initial Exchange Offering is carried out on the platform of a crypto currency exchange. Unlike Initial Coin Offering (ICO), IEO is managed by the exchange on behalf of a startup that is trying to raise funds with its recently released tokens. Since tokens are sold on the exchange platform, tokens issuers must pay a listing fee along with the percentage of tokens sold during IEO.  In turn, startup’s tokens are sold on the exchange platforms, and their coins are added to the exchange list after the end of the sale. A crypto currency exchange receives a percentage of sold tokens but, in turn, helps the issuer of tokens with marketing operations.

From ICO to IEO: The New Way to Raise Funds

IEO participants don’t send their contributions to the smart contract as in case with ICO. Instead, they must create an account on the exchange platform where IEO is held. Once done, they deposit funds into their exchange wallets with the help of coins and use these funds to purchase startup’s tokens.

A growing number of crypto currency exchanges like the bitcoin revolution website began to conduct IEOs . One of the first in the line was Binance, with its IEO Binance Launchpad platform. Although the first IEOs were conducted back in 2017, and the Binance was not the first “who coined the term IEO”, the world largest exchange by trading volume is regarded as the first big mover and trendsetter. The main sensation of the end of February was the success of the Fetch.AI project, which, in the framework of IEO on the Binance Exchange, collected $6 million in 22 seconds. Previously an unprecedented excitement allowed selling the entire amount of BitTorrent tokens worth $ 7.2 million in 18 minutes using the same method. Other successful cases include Bread, Gifto, Celer, and one upcoming called Maric.

IEOs Explained: Benefits and Top Successes

Watching the success of Binance Launchpad, other well-known exchanges announced the launch of their own IEO platforms. IEO revolutionizes startup fundraising by offering projects a trusted way to raise capital and reach a wider audience. Here we have collected TOP IEO Platforms & Launchpads.

1. Huobi Prime

In March 2019 Huobi launched and IEO platform called Huobi Prime. Huobi was actually the next major exchange after Binance which managed to perform successful IEO with the TOP Network project. They completed their first selective token sale event in a matter of seconds, with token prices rose by 250% immediately afterwards. Huobi Prime positions itself as a Direct Premium Offering (DPO) platform that provides the users with a variety of advantages.

2. OKEx Jumpsmart

They position itself as a global leader of blockchain technology and the most trusted digital asset exchange, and they have every right to do so. One of the leading exchanges by trade volume, OKEx, in March announced its own token sale platform – OK Jumpsmart. So far there isn’t any public information about upcoming projects, but we can be sure that they are looking closely for new prospective projects to work with.

3. Probit Launchpad

Probit has seen solid success on its rapidly expanding IEO platform. It has already hosted over 70 rounds of IEO after carrying out its first IEO on in February 2019. Probit has shown some amazing results like the Linix IEO that sold out in just five seconds and went on to raise $300,000 in 30 minutes and the latest massive success in Boltt Coin, which raised $795,000 over the course of 4 consecutively sold-out rounds. Their very first Launchpad Premium IEO for SportX helped the decentralized sports IP ecosystem sell out all 5,000,000 of their SOX tokens while also helping its value skyrocket by 300%.

4. Coineal Launchpad

Established in 2018 Coineal Launchpad has been winning its niche too. It is quite a big exchange with almost $700M daily trading volume. Like other leading exchanges, they have also jumped in the race for and IEO launchpad. Coinreal has already completed IEO’s for IPW Token, Levolution, and Kizuna Global Token. A Vietnam-based blockchain project REDFOX Labs announced that they Coineal seems to be as an ideal platform for its token launch due to the strong regional footprint in Asia and a record of successful IEOs.

5. ZBG Launchpad

Just like the success of its exchange ZB.com, which was a newcomer in 2018 but quickly reached the Top 10 on CoinMarketCap, ZB expects its launchpad to do the same. Previously, the exchange has been accused of faking its trade volumes; nevertheless, ZBG has completed two VIDEOs on their own launchpad with V Systems and Kamari projects.

6. BW Launchpad

Just like its strategic partner ZB.com, BW.com exchange can be characterized by a strong footing in the Asian region. BW Tokens Launchpad has supported six IEO projects to date (FUTUREPIA, PANTHEON X, and Link by Blockmason, Grabity, BLOCKBUSTER and V SYSTEMS).

7. Coinbene

One of the world’s leading trustworthy crypto assets platforms, Coinbene is frequently listed among the Top 10 exchanges and boasts a large community. Although the company mentioned its own IEO platform back in 2018, the first official IEO launch took place in March 2019. With strong community support, Coinbene continues to maintain its position among the top exchanges.

8. BGOGO Apollo

It is the first digital asset exchange with super node listing authority, designed to list the most high-quality and promising digital assets. Bgogo.com was founded by members from leading Internet companies such as Facebook, Twitter, IBM, Alibaba, etc. Now they are launching Apollo (IEO Launchpad) and have announced two token sale events for ARM and X-Block projects.

9. IDAX Foundation

IDAX is an international exchange platform originating from GBC (Global Blockchain Research Centre). Founded in 2017, it quickly rose to be ranked in the Top 10 exchanges on CMC within several months. The platform offers users worldwide a convenient, safe, and fast way to conduct digital cryptocurrency transactions. In April 2019, IDAX announced its first IEO for the ZeroBank project. After that, IEOs for AlienCloud, Migranet, and xCrypt followed.

10. BitMax Launchpad

It is a young exchange but a strong derivative platform with access to large high ticket investors. Their first IEO project called DOS Network did not receive the expected support from the community, and already there’s a sense that these projects may struggle to sustain their price once exchange listed. But the first step is always troublesome and we expecting Bitmax Launchpad to produce winners. Bitmax is aiming for a launchpad IEO of 1 per week.

11. Bittrex International

Bittrex International is a secure, reliable, and advanced digital asset trading platform designed for international customers, built on cutting-edge technology. In February 2019, Bittrex announced their first IEO for the RAID project; however, it was cancelled due to significant changes in RAID’s business status. Despite this setback, the company quickly moved forward with a second attempt. Their IEO for VeriBlock sold out in just 10.4 seconds on April 2, according to a company report. This success greatly boosted Bittrex’s reputation and contributed positively to overall market optimism.

12. Latoken Launchpad

LATOKEN is a rapidly growing crypto exchange that focuses on liquidity for new tokens. In March 2019, it entered CoinMarketCap’s Top 20 and continues to improve its ranking. The platform launched its IEO launchpad back in 2018 and has actively promoted the projects listed there. Recently, LATOKEN announced a new IEO for the 7Eleven project.

13. KuCoin Spotlight

Kucoin joined the race announcing brand new platform Spotlight in March. With having lost their position due to the decreased trading volume of late the exchange looks to be heading the IEO way to get its fortunes back. On April 3, the first IEO for MultiVac project sold out in 7 seconds and attracted users from 59 countries.

14. Exmarkets Launchpad

ExMarkets ecosystem allows customers to trade multiple cryptocurrencies 24/7 across several exchanges, offering low fees, deep liquidity, and tight bid/ask spreads. As a new generation crypto-exchange, the platform features thick order books and high liquidity supported by a robust backend framework. So far, ExMarkets has completed 5 IEOs, with 6 ongoing and 3 more upcoming.

15. Cobinhood

COBINHOOD is a next-generation cryptocurrency service platform aiming to shape future economies by creating a crypto financial center for the blockchain era. The platform stays loyal to the traditional ICO concept, offering turnkey ICO services that include business model optimization, tokenization, marketing, and PR. So far, two projects have been completed: their own Cobinhood token sale and another project called CyberMiles.

16. CoinTiger

The CoinTiger platform is a global and innovative crypto asset exchange that provides multi-crypto-currency trading services in multi-language to blockchain enthusiasts around the world. Since the platform was launched, it has continuously iterated with a steady upgrade and now has an increasingly mature ecosystem comprising web, iOS and Android clients application and comprehensive exchange services including cryptocurrency trading, Ticker Capital, Labs, IEO, and voting for listing program. In summer 2018 the CoinTiger platform carried out IEO for TCT – Tycoon Global.

17. Liquid

Liquid is a highly sophisticated cryptocurrency trading platform that supports fiat and dozens of cryptocurrencies. As one of the largest exchanges in Asia, it has built a strong reputation. IEO revolutionizes startup fundraising by enabling projects to launch token sales directly on trusted platforms like Liquid. Among the IEOs listed on Liquid are Ontology Network (ONT), TaTaTu (TTU), Mithril (MITH), and Daostack (GEN).

18. LBank Exchange

LBank is a leading digital asset exchange that offers services to users worldwide. Based in China, it supports a wide variety of cryptocurrencies globally. Recently, LBank announced its entry into Initial Exchange Offerings, selecting Oath Protocol as the first project on its platform.

19. DOBI Trade

DOBI Trade Digital Asset Exchange is the world’s most accessible cryptocurrency trading platform that aims to create a quick, convenient, and secure trading environment for all types of traders. IEO revolutionizes startup fundraising by providing projects with a reliable way to raise funds through trusted exchanges. For example, the BNOW project is listed on Dobitrade Exchange as an IEO on the BNOW/BTC market.

20. ABCC Launchpad

ABCC Launchpad is a new IEO initiative from ABCC Exchange. The team carefully selects top digital assets through rigorous due diligence and multi-faceted evaluations. This process ensures that only the most promising blockchain projects with strong use cases and dedicated followers earn a spot in their IEO program. Supported projects include AIVIA, Connectome, and Poseidon.

21. Bibox Orbit

Bibox Orbit serves as the IEO launchpad for Bibox exchange, an AI-enhanced encrypted digital asset platform. This token launch platform aims to engage the community with high-quality decentralized projects, promoting their development and deployment. Notable collaborations include Ludos Protocol, Force Protocol, and X-Block.

22. BISS Launchpad

BISS Launchpad is the IEO platform of BISS exchange, known as the world’s first Token-to-Token and Token-to-Stock CFD trading platform. IEO revolutionizes startup fundraising by enabling projects to access capital through trusted launchpads like BISS. The platform has successfully conducted IEOs for projects like ARPA and Volume Network. This innovative approach sets BISS apart in the evolving crypto market.

23. Bitforex Launchpad

Bitforex Launchpad is the IEO platform of Bitforex exchange, a world-leading digital asset trading platform. Headquartered in Hong Kong and registered in the Republic of Seychelles, Bitforex provides safe, professional, and convenient trading services to users in over 200 countries. So far, Bitforex Launchpad has organized IEOs for projects such as Evedo, Ecomi, everiToken, and Magnachain.

24. BitMart Launchpad

BitMart aims to become the world’s leading digital asset trading platform by offering safer, faster, and smoother services to customers globally. The BitMart Launchpad serves as the exchange’s IEO platform. In April, it supported the IOTW project, marking another step in its growing presence in the crypto space.

25. Gate.io Launchpad

Gate.io Launchpad is the token launch platform operated by the Gate.io exchange. Founded to empower a new generation of global traders, Gate.io provides tools to access the revolutionary world of cryptocurrencies. Their IEO projects include CNNS, FACTS, MovieBloc, DREP, and GoWithMi.

26. HOTBIT Launchpad

Hotbit is a professional digital asset exchange platform offering trading services for major cryptocurrencies such as Bitcoin, Litecoin, and Ethereum to users worldwide. IEO revolutionizes startup fundraising, and Hotbit embraces this trend through its dedicated HOTBIT Launchpad. In April, HOTBIT successfully conducted its first IEO for BOOSTO.

27. P2PB2B

P2PB2B is a cryptocurrency exchange that is mainly focused on the needs and interests of businesses. From the B2B point of view, the exchange has several benefits. Open API allows any API apps like exchangers, financial services, startups to get a free listing. Therefore new projects can attract the audience while established businesses give their users more opportunities. P2PB2B is the IEO launchpad from P2PB2B exchange. This May they have started IEO for Gexan project.

Initial Exchange Offering can be considered as an evolution of the ICO. IEO is a crowd funding strategy that relies on an exchange or multiple exchanges, which make the smart contract, event planning, and some marketing campaigns.