The Korea Blockchain Startup Association (KBSA) advised blockchain companies to develop the ‘minimum visible product.’ (MVP)instead of recruiting expensive advisors. This is the fastest way of raising money, it said.

By proving their technical viability through the MVP, the blockchain companies could raise up to 1.5 billion won through the initial exchange offering (IEO), the association said.

The association unveiled a guideline on the initial exchange offering (IEO). Under the IEO, cryptocurrency exchanges first screen technical viability of blockchain companies seeking to issue and trade coins. The exchange accepts listing and trading of coins issued only by companies which have proven technical prowess.

The IEO is an alternative to the initial coin offering (ICO). The Korea Blockchain Industry Promotion Association, the Korea Blockchain Startup Association, and the Korea University’s cryptocurrency research center issued a guideline on IEO.

Under the guideline, no blockchain company can issue and list their coins on the cryptocurrency exchange unless they have a minimum visible product (MVP).  A blockchain company could raise up to 1.5 billion won once it gets more than 700 points in the checklist.  Technical viability is crucial because 500 points are allotted to the minimum visible product (MVP).

The associations have submitted the IEO proposal to the government agencies, including the Financial Supervisory Service.