When developers of a cryptocurrency project decide they want to organize an IEO, a complicated procedure must be followed before the first dollar can be raised. For the project's team, several requirements must be met. Having a robust business model, experienced team members, a viable use case for the technology, and providing whitepaper are crucial. Organizing an IEO is akin to stating that they are committed to the long-term success of the project.
Additionally, they need to determine if their Initial Exchange Offering will have a hard or soft cap. A hard cap ensures that no more than a certain amount of money can be invested. A soft cap sets an initial goal to be reached but allows for more investments to trickle in afterward.