IDO (or Initial DEX Offering) is a crowdfunding technique that allows crypto projects to launch their native token via DEXs (Decentralized exchanges). This model is inherited from traditional methods of raising capital and launching projects such as ICO or IEO.
ICO, IEO & IDO: What’s the difference?
No vetting. The project runs the opening sale themselves.
CEXs vet the project.
DEXs vet the project.
The project handles investors’ funds themselves.
CEXs handle investors’ funds.
DEXs handle investors’ funds.
The project creates and runs Smart Contracts.
CEXs create and run Smart Contracts.
DEXs create and run Smart Contracts.
The project find an exchange to list token themselves.
CEXs list the project’s token.
TGE - Token Generation Event
Benefits of IDO
Investors can access potential projects easily because it is an open model that does not require participants to verify KYC or go through complicated registration processes. In addition, users can invest a small amount of capital and still earn high profits thanks to the multi-fold increase in the token price after the sale.
Because the nature of IDO is a form of capital mobilization, projects implementing IDO will receive a significant source of capital to focus on project and community development by the proposed roadmap. Moreover, suppose the project chooses reputable and popular DEXs. In that case, it will also promote the communication side, enhance the brand’s position and investors’ trust, and build relationships with other projects in that exchange’s ecosystem.
Projects open for sale will help the DEX exchange attract the attention of investors, increase trading volume and enrich the project ecosystem for the exchange. These are all essential factors that help improve the position of DEX in the market.
How to stay safe in IDO?
- Research carefully about the project you are about to invest in, participate in IDO on reputable DEX exchanges, and via links from official information pages about the project to avoid fraud.
- When registering to buy a regular IDO, investors need to go through a qualifying review to buy an IDO (Whitelist). Only those present in the Whitelist can purchase tokens at a Public price and have a high chance of making a profit.
- Only invest money that is within your risk tolerance. The tokens of the famous IDO project will increase many times after the sale, but this factor is not guaranteed.
Some popular IDO Launchpad platforms
- Polkastarter: Polkastarter is considered one of the Launchpad platforms with the highest number of projects launched and has a good ROI (return rate) on the market today. Operating on the Polkadot platform, Polkastarter has many advantages such as anti-scam, cross-chain token swap with no feature restriction, and a processing speed of up to 160,000 transactions per second (TPS).
- BSC Pad: BSC Pad is the first decentralized IDO platform on BNB Chain. BSC Pad not only helps projects raise capital and promotes liquidity thanks to more than 10 million users of the Binance exchange. With the criterion of “First come, first serve”, criterion IDO participants can rest assured to enjoy equal benefits in terms of investment opportunities.
- DAO Maker: DAO Maker is one of the best Launchpad platforms on Ethereum, thanks to the quality and safety of the projects. The platform has pioneered several new token sales, such as Dynamic Coin Offering (DYCO), which allows participants to be refunded purchased tokens or SHO (Strong Holder Offering) for active holders.
ONUS Launchpad is a program on the ONUS application that helps connect potential blockchain projects with the community by selling project tokens to investors at ONUS. After being selected and appraised by the ONUS team, all Launchpad projects will need to pass the Voting round of the community before being officially opened for sale. This is to create a democratic and transparent environment for all ONUS users.
IDO is an interesting playground and offers a lot of potential for profit for all investors without too much dependence on capital. However, any form of investment contains certain risks, so investors need to learn and consider carefully before “pouring money” into any project.
Wish you an exciting investment experience.