The crypto-industry is witnessing the rise of IEOs in response to the need for alternative project financing methods. An IEO is a token sale where a crypto-exchange facilitates the sale on the issuer’s behalf, rather than the issuer conducting the sale itself.
In an Initial Coin Offering (ICO), the investor sends the funds directly to the token issuer. Alternatively, in an IEO the buyer creates an account with the exchange hosting the offering and sends the funds there. The buyer then receives the tokens from the exchange itself. Therefore, the exchange acts as the middleman between the token issuer and the investors.
An IEO offers a number of advantages, such as:
- Tapping into the user base of the hosting exchange
- Immediate liquidity for the token
- Requires a lower marketing budget
- Gives added confidence to potential buyers since the exchange screens the project before permitting the launching of the IEO
- There is added security as the exchange also carries out its own KYC/AML checks on the buyers
- Buyers can pay for tokens in all the different currencies (fiat and altcoins) accepted by the exchange
- Eventually listing the token on the hosting exchange will be a natural next step
A Maltese entity launching an IEO is also an Issuer under the VFA Act if the tokens classify as VFAs. In this case, the issuer shall comply with the requirements under the VFA Act.
Our team at E&S Group is able to assist in launching an IEO and ensuring full compliance with the VFA Act. Contact us for more information!
Dr. Mariella Baldacchino
Dr. Mariella Baldacchino currently sits on the Board of E&S Consultancy Ltd and RES Malta Ltd, authorised corporate service providers in Malta, and is the Managing Partner at E&S Law, a Law firm based in Malta. E&S Consultancy, RES Malta Ltd and E&S Law operate within the E&S Group. Dr. Baldacchino, a lawyer by profession with over 12 years of involvement with international businesses set ups in Malta, is responsible for the corporate and legal team at E&S Group. She is also responsible for the operations of the E&S Group including overseeing day to day operational functions and implementing decisions and strategies of the E&S Group. She read law at the University of Malta in 2005 and finalised a Master in ‘Diritto Privato Europeo’ at the University of La Sapienza Rome in 2006. In 2006 she joined a tax firm in Malta, whereby she was responsible for a varied international based client portfolio, which developed her experience on efficient tax planning, corporate law matters and client relations. In 2011, she took a senior role within a major audit firm heading the Legal Team. Her responsibilities were managing and supervising the legal team, as well as assisting with legal expertise and ad hoc problem-solving. Mariella joined E&S Group in 2016 as Senior Manager for the Corporate and Legal Department.
Mariella is fluent in English, Italian and Maltese.
Phone:+356 2010 3020
Dr. Anton John Mifsud
Anton graduated as a lawyer in 2009 and was admitted to the Maltese Bar in 2010. He holds a Bachelor of Laws, a Masters in Financial Services as well as a Doctorate in Law from the University of Malta and is a member of the Malta Chamber of Advocates. He has worked for a number of years with one of the largest law-firms as well as the largest fund administrator in Malta where he gained valuable experience in corporate and financial services law. He was appointed Head of Legal at E&S Consultancy Ltd in September 2018 and since July 2019 he also oversees the operations of the company’s corporate services department. He regularly advises international clients with respect to the conduct of their business activities in Malta and is also involved in the negotiation and conclusion of agreements on behalf of clients. Anton specialises in corporate, commercial, financial services and fintech law (covering areas such as ICOs, IEOs, STOs and the licensing of crypto-operators).
Anton is fluent in English and Maltese.
Phone:+356 2010 3020
Dr. Jade Fenech
Jade joined E&S Group as a legal associate in 2018. Before joining E&S Group she practised with a litigation firm for two years. She holds a Bachelor of Laws Degree and a Masters of Advocacy from the University of Malta and was admitted to the bar in 2019. Her primary areas of practice are corporate and commercial law, financial services and fintech.
Jade is fluent in English and Maltese.
Phone:+356 2010 3020