ICO IEO STO Oct 12, 2020

Cryptocurrency as a way to raise capital: ICO, IEO, STO provide an alternative to the old-school IPO. Part two

The crypto industry has provided investors and entrepreneurs with an excellent alternative to the outdated traditional investment model, allowing them to radically change all the rules of the game.

IEO (initial exchange offer)

In an ICO, investors transfer money to the project team in exchange for a certain amount of cryptocurrency on this blockchain. There were many reasons why this was problematic, mostly due to fraud and failed projects.

IEO works differently IEO, as the name suggests, have a cryptocurrency exchange platform as an intermediary. You don’t transfer money to developers, but to a cryptocurrency exchange that has teamed up with them. In exchange, instead of the project team directly awarding you tokens, you now receive them from the cryptocurrency exchange platform.

There are many advantages for investors. First, when a crypto exchange site is combined with a crypto project, the reputation of the exchange is at stake. If the development team does not achieve the stated goals, there is a risk. If the project fails or, even worse, it turns out to be a Scam, the exchange will take the brunt.

This means that the cryptocurrency exchange site conducts due diligence before accepting projects into its EIO offerings. This includes checking the technical description of the project, its participants, and ensuring that the goals are achievable and realistic.

Exchange sites can even withdraw from the IEO at any time before it is held, if they find something questionable. This has actually happened before. And it will happen again, at least with reputable exchanges.

Thus, the investor significantly reduces the risk compared to the ICO. This doesn’t mean that the project can’t be a Scam, but it’s much less likely that it will be.

After the IEO, the purchased tokens will be displayed in the investor’s online wallet, and often trading can start immediately, which is another important advantage for both the project and investors. The cryptocurrency exchange also applies certain security and regulatory measures, such as the KYC process and AML measures.

STO (security token offer)

Through STO, investors can purchase security tokens, which gives them the right to receive payments similar to dividends, or the right to vote for the future of the issuing company. As securities, securities tokens, with some exceptions, are required to comply with the rules and laws that apply to the issuance and trading of securities in the country where they are issued.

It can be said that STO is the most similar to IPO of all methods of raising funds for cryptocurrency, except that it occurs on the blockchain. In addition, similar strict rules apply, and the process of obtaining permission to conduct an STO can sometimes take up to 6 months. Strict rules regulate the source of money, increase corporate responsibility, and reduce the likelihood of fraud.

However, there is a positive side to strict regulation. As the blockchain industry becomes increasingly attractive to institutional investors, a well-regulated funding method can lead to a massive influx of funds if the project attracts the interest of an institutional investor. The proposed token must be registered and meet the requirements of local legislation.

According to the law, companies must register with the local regulatory authority in order to be included in the list of companies that issue their shares for free sale. Thus, preparing for the STO is very difficult and expensive, but managing after the offer is cheap. However, STO is still cheaper than IPO, since most of the administrative work is done online.

Conclusion

While the rules can be a big drawback for entrepreneurs, they also provide a certain level of security for both parties. We can conclude that IPOs are and probably will remain an established procedure for raising funds for already well-known companies, while the popularity of ICOS is declining. This is why most blockchain startups choose a slightly less regulated IEO or a more complex STO.

However, if the issued token has no other utility other than representing the company’s ownership interest and giving its owner the right to vote on offers, this type of asset is likely to be considered a security and therefore subject to stricter regulation.

SPACEBOT

Author of the article

How to listing my coin/token to the SPACEBOT?

Application Form for Listing

Please Kindly Answer the Following Questions:

  1. 1. Coin Recommender
    1. 1.1 Anyone Introduces You to SPACEBOT?
    2. 1.2 Referral’s Name, Mailbox, Telegram Account
  2. 2. Introduction of the Project
    1. 2.1 Name of Project, supporting both Russian and English
    2. 2.2 Official Website
    3. 2.3 Documentation link (api for developers)
    4. 2.4 Symbol (url: coinmarketcap.com,coinpaprika.com etc.) ATTENTION: It’s a prerequisite! If information about your coin is not available on this resource, we can agreed and list it on coinmarketrate.com. Listing price from 10 ETH.
    5. 2.5 Offering Price (url: coinmarketcap.com,coinpaprika.com etc.)
    6. 2.6 Total Fundraising Amount (url: coinmarketcap.com,coinpaprika.com etc.)
    7. 2.7 Brief Introduction of your Project Covering its Positioning, Features , etc.
    8. 2.8 Expected Trading Pairs against BTC, USDT, ETH (url: coinmarketcap.com,coinpaprika.com etc.)
    9. 2.9 Anyone in Charge of the Project
    10. 2.10 Contact of Project Manager
    11. 2.11 Project promotion Channel like Website, Wechat Official Account, Twitter, etc.
    12. 2.12 Attachment of Source File of Token Logo
    13. 2.13 Is the Project Tokens Based on ERC20 (or other blockchain)?
    14. 2.14 Any Market Value Management?
  3. 3. Project Marketing ant Its Users Scale
    1. 3.1 Expected Listing Date
    2. 3.2 Users Community in Telegram, Twitter, Reddit, Slack, WeChat, QQ Group , etc. and Its Links and Scale
    3. 3.3 Media Reports and Links
    4. 3.4 Time and Place of Roadshow or Other Marketing Campaign?
    5. 3.5 Marketing Budget on SPACEBOT and Token price establishing margin
  4. 4. Qualifications
    1. 4.1 Basic Information of Team Members
    2. 4.2 Consultants or Public Figures
    3. 4.3 Early Investment
    4. 4.4 Whether Listed on Quote Platform,such as Feixiaohao ,CoinMarketCap, etc.
  5. 1. Notes for Listing
  6. 2. SPACEBOT the unique software, for co-production of cryptocerrency. SPACEBOT provides an opportunity to get a monthly increase in the productivity of the cryptovoltaic minting of PRIZM, BIP and other cryptocurrency due to the total increase of the balance in the network of blockages through the “Proof-of-Stake” system.
  7. 3. SPACEBOT is only responsible for verification of authenticity and legitimacy of projects. SPACEBOT will not evaluate the project, and not provide any moral and value endorsement. The digital assets team will take full responsibility for all illegal irregularities such as illegal fund-raising, pyramid selling, money laundering, gambling, drug abuse, fraud, being banker of the asset, etc.
  8. 4. The digital asset teams need to make preventive measure with SPACEBOT to keep away from crushing the market. Otherwise we will end the cooperation.
  9. 5. SPACEBOT will remove the project from the list if : The dissolution of team keeps our client away from mining, transferring, block inquiring, etc. No investors trade, hold, use this token; technical failure which affect mining, transferring, block inquiring, etc. The team has some illegal irregularities such as illegal fund-raising, pyramid selling, money laundering, gambling, drug abuse, fraud, being banker of the asset, etc.

How to register a new users on SPACEBOT?

Registration on SPACEBOT is available only via the referral link which you can get after bonding 100 coins to the pool.

In order to get the link through the Telegram bot:
1. Send 100 coins to the wallet given by the bot: Wallet – Deposit
2. Bond 100 coins to the pool: Wallet – Deposit for paramining
3. Skip to ‘Affiliate program’ section and copy your referral link
4. Now you can share your referral link and invite new users

In order to get the link through iOS/Android:
1. Send 100 coins to the wallet given by the App: Home screen – Refill
2. Bond 100 coins to the pool: Home scren – Bond
3. Skip to ‘Affiliate program’ section and copy your referral link
4. Now you can share your link and invite new users

How to install the iOS App?

To install the App

1. Follow the link:

https://apps.apple.com/ru/app/spacebot/id1498907599

2. Сlick ‘Install’ and follow the standard steps to install the App on your device

3. If you are a new user – press ‘Register’ (you need to indicate your inviter; find your inviter`s ID or get a referral link in the ‘How to register a new user’ section)

4. If you already have your SPACEBOT Telegram account you need to link it to email. You may find how to do it in ‘How to link email to your SPACEBOT account?’ section.

How to install Android App?

To install the App:
1. Follow the link:

https://play.google.com/store/apps/details?id=space.bot.mobile

2. Press ‘install’ and follow the standard steps to install the App on your device.

3. If you are a new user – press ‘register’ (you need to indicate your inviter; find your inviter`s ID or get a referral link in the ‘How to register a new user’ section)

4. If you already have your Telegram SPACEBOT account you need to link it to email. You may find how to do it in ‘How to link email to your SPACEBOT account?’

How to top up your balance?

Top up your balance with Telegram bot:
1. Go to ‘Wallet’ section
2. Press ‘Deposit’
3. Copy the wallets sent to you (be careful not to copy extra symbols)
4. Transfer coins to the copied wallet adress

Top up your balance with iOS/Android App:
1. Press ‘Top up’ on the mail screen
2. Copy the wallets sent to you (be careful not to copy extra symbols)
3. Transfer coins to the copied wallet adress

* Track transaction on the blockchain:
PRIZM – https://prizmexplorer.com
BIP/BTT – https://explorer.minter.network

**Please note that depositing of coins requires certain number of confirmations in the network and it takes time to process a transaction with our algorightm

***Also note that many exchanges and wallets services carry out transfers with delay (on some exchanges it can take up to 72 hours), and you shouldn`t worry since this is a stadard procedure.