What is Initials Decentralized offering?
Decentralized Exchange Offering, also known as IDO, is an option that helps to raise funds for a crypto project or startup through the sale of new tokens. These tokens would be listed on a decentralized exchange where they can be traded against other cryptos. Decentralized liquidity exchanges don’t have any control over the funds raised by projects using the IDO model. This is because decentralized liquidity exchanges can’t access the ICOs’ smart contracts that host all their funds and tokens. IDO model has become so popular that it is often used even though other methods like ICO, STOs, IFOs, etc., exist.
What is an IDO launchpad?
Kind of similar to ICOs, IDOs are also projects that are hosted on a decentralized platform. The major difference is that these projects are waiting for funding to start their work. These potential projects are listed on these IDO launchpad platforms along with other projects. Investors can buy the IDO tokens of these potential projects by investing in them using cryptocurrencies like Binance Coin and others.
The main purpose of the IDO launching platform is to offer a new way of raising funds while providing access to new types of investment opportunities. The developers of such platforms must consider all the relevant legal aspects regularly. Ensuring compliance with this is particularly important if it involves international investors.
The IDO launchpad functions as a platform for entrepreneurs to build their businesses. In this process, the developers create a webpage for the projects. Then investors can invest in these projects by using their IDO tokens. The liquid pool decides the liquidity of the tokens. The users or investors can swap IDO tokens in this decentralized environment which includes stable coins and cryptocurrencies.
How does it work?
IDO tokens are the native tokens of the launchpad and are used to participate in Initial DEX offerings. An investor will have to go through a few steps here in order to participate in IDOs and bag some tokens. On getting on board as a first step, the user is required to connect their digital wallet with the IDO platform. Now they need to purchase tokens of the launchpad(IDOs) and store them in their wallet. After they have stashed enough tokens, they can request to get whitelisted so that they get early access to the IDO. Once the IDO is live, they can bag as many tokens using these tokens.
Popular cryptocurrency launchpads
- Card starter
- BSC pad
Perks of IDO launchpad
- One of the key features of a launchpad is its ability to list and expose the budding projects.
- An opportunity for investors who are looking for growth potential in their investment.
- Launchpad has an open-source wallet that provides IDO staking and gives liquidity to the IDO tokens.
- Higher funds, liquidity, and capital with a great potential of getting more stable.
- Detailed reports and analytics on cryptocurrency and also fiat-to-crypto conversions
- An automated escrow service where transactions happen only if both the parties fulfill their end of the deal
- A reputation management system that builds trust and credibility among investors, contributors, strategists, and business leaders. Users on IDO can place their trust in someone’s work by “stamping” their contribution. Users are judged based on their work quality, interaction on the IDO platform, and blockchain verification.
Features of IDO launchpad
A decentralized launchpad is a place where users, investors, and other stakeholders can come to share their thoughts, ideas, and views about the new projects and future developments.
Many popular blockchain technologies, such as Polkadot, Tron, and Ethereum, are compatible with the IDO launchpad platform. This means that you can launch your own tokens on top of Polkadot, Tron, or EoS and then use them with the IDO payment processor in any application you like!
IDO Launchpad has a user-friendly project listing section. It allows anyone to discover new tokens, get detailed information about them and participate in their funding campaigns.
IDO launchpad platform allows the creation of multiple investor pools. The administrator can also maintain a different ratio of token allocation from the pool. The main function is to prevent getting the investor pool from being crowded.
Future Look-like for IDO
If you’re planning an Initial DEX Offering for your blockchain business, you have many advantages to choose from. IDOs are the most attractive and efficient fundraising mechanism today. They have advantages over ICOs, STOs, and IEOs: they are trustworthy compared to ICOs, and more decentralized than IEOs. They also don’t have the complexities of other fundraising mechanisms. Because of these advantages, IDOs are becoming more popular and practical compared with other fundraising mechanisms. This is why you should launch an IDO soon. When investment in tokens and blockchain initiatives becomes more widespread, it’s best to be prepared early.