PointPay has business contacts with more than 50 banks and 25 payment systems, as well as 20 lawyers who deal with issues of licensing cryptobusiness. We have 4 years of experience in supporting the functioning of payment systems, including signing contracts, working with banks, working with other payment systems, paying out funds, and building complex payment schemes.
Initial Exchange Offering (IEO) Option on the PointPay Crypto Exchange platform
The first cryptocurrency fundraising campaign was conducted by the MasterCoin project in 2013. Since then, thousands of startups have used this form of attracting investments and collected hundreds of millions of dollars in funding through the initial coin offering, known in the crypto community as the token sale.
In 2017 and 2018 cryptocurrency projects first carried out token sale campaign directly on their landing sites and only then they listed the tokens on exchanges. Yet in 2019 the trend has changed in favor of the so-called IEO – initial exchange offering. It can be stated that the crypto industry repeats the history of the stock market: it’s enough to recall how at one time the shares of current business giants – such as Alibaba or Facebook – were sold as part of an initial public offering (IPO) on the American stock exchange Nasdaq, specializing in high-tech companies. The cryptocurrency community seems to have decided to take the already beaten path, and PointPay readily joins the global trend.
It is necessary to take into account that in order to enter the IEO on top exchanges, startups need not only huge amounts of funds that are too heavy for the beginning, but, as a rule, well-established business contacts with representatives of the top management of these exchanges. In contrast, PointPay offers cryptocurrency blockchain projects to attract funding according to well-defined and common rules and standards that will be developed by experienced advisors with many years of relevant industry experience.
The table below clearly demonstrates the benefits derived from the implementation of this option on our exchange. This is a classic case of the win-win principle, since the situation is advantageous not only for projects that will conduct an IEO on the PointPay Crypto Exchange platform, but also for all PointPay investors and for the exchange itself.
Benefits for investors:
- Increased investor confidence, as the exchange takes reputational risks on itself and evaluates the project for its compliance with established standards;
- Exclusion of the so-called “gas wars” between investors competing among themselves for the right to be the first to receive the cherished tokens during a tokensale at a more attractive price
- Low entry level for investing that democratizes the process and makes it accessible to a wide range of crypto exchange users.
Benefits for cryptocurrency projects conducting tokensale:
- Saving money spent on marketing the project, as the crypto exchange itself organizes the sale of tokens, attracting investors who have gone the whitelisting procedure.
- Guaranteed achievement of softcap and hardcap by informing in advance crypto exchange users who have a potential to take part in a token sale.
- Increasing of token liquidity after making a listing on the crypto exchange in the most popular trading pairs.
Benefits for the PointPay Crypto Exchange platform:
- Stimulation of cryptocurrency liquidity growth by investors wishing to participate in the IEO and depositing the assets to the crypto exchange;
- Increase in income from trading fees, as well as depositing and withdrawing commissions (the more income has the exchange, the more cryptoback get PXP token holders);
- Attracting of new traders who were not previously registered on the crypto exchange.