All You Need to Know About Initial DEX Offering (IDO) Development in 2023
Initial DEX offering (IDO) is a crowdfunding method. Thus, any cryptocurrency project can issue its token on a decentralized exchange. IDO is a reliable project launch means collecting money for the project to grow and develop.
Due to the rapid DEX market growth, IDO is one of the current blockchain fundraising methods. Initial coin offering (ICO) was widely used in 2017-2018 as the first method. Many projects promised revenue to their investors. Furthermore, many projects managed to show excellent results. However, ICO is not regulated; hence, suspicious for investors. Some projects are frauds, and investors have started to deny using this method since their number increased.
Initial exchange offering (IEO) appeared because ICO lost its reputation. This model was introduced in 2019, and since then, it has become popular and common. IEO is similar to ICO since the investors receive the tokens of the new cryptocurrency project before the market. However, they are different since the crowdfunding process will always involve exchanges. Yet, some investors find it complicated and time-consuming, so they started looking for other investment methods.
Recently, the Initial DEX offering (IDO) became popular. The technique solves all ICO and IEO issues by providing an alternative fundraising technology.
IDO is a token offering on a decentralized exchange. In contrast to ICO, where the tokens go for sale before being listed on exchanges in IDO, the assets instantly appear on the DEX and launch there. Hence, the project creators do not fundraise assets in pools. The decentralized platform will organize the pool after IDO on the launchpad.
It is a popular model since it allows to bring investors without intermediaries with the liquidity pools. The investors benefit from instant trading opportunities, which is a win-win case for both parties. The applications are not linked to centralized exchanges and provide a range of unique benefits, thus, reducing the barriers to projects. DeFi projects, privacy, and non-fungible tokens (NFT) popularize IDO.
For instance, a project decides to employ IDO, meaning the token launch will proceed through DEX liquidity. With this exchange type, the clients can make critical decisions on the assets necessary for future project success. It is not an issue today since sufficient decentralized exchanges offer broad opportunities for startups and significant companies that launch their projects. DEX provides instant liquidity.
Entrepreneurs can use this method to launch a blockchain product and eliminate all possible fraud schemes, hackers, or human-factor issues.
IDO has two basic stages. Initially, the process starts on a launchpad for promotion and facilitating the fundraising for new projects. Launchpad will provide the necessary instruments for efficiency, early development, and launch of projects. The investors will have access to various projects before listed on DEX. Launchpad community can access the coins at a low cost, fixed by the platform on round 1 of financing.
There are two launchpad groups:
Therefore, IDO is a favorite with enough merits compared to the earlier two models. The main benefits are
First, it is vital to develop a strategy for issuing the tokens to decentralized exchanges. The project must offer a solution to an issue. Then this strategy will make sense. Also, developing a marketing company and a development plan after IDO will support the growth is essential.
It’s possible to deploy the IDO if there is a website, technical documentation, and additional instruments for the corresponding content. It’s essential that professionals work on these elements. A trademark and beautiful visuals on the website increase investors’ trust.
High-quality technical documentation will provide facts and a clearer image; thus, the investors will feel closer to the project. It must include statistics, diagrams, spreadsheets, and other manuals. As a result, the technical documentation will help to persuade the investors that the project is worthy.
In addition, news, articles, and press releases will support the project greatly. You may generate the content independently or ask an agency that provides publication services.
One can participate in IDO through a white list if one has a cryptocurrency wallet. The main steps are
In conclusion, it should be noted that IDO is not perfect, there are a few problems, but the benefits exceed them. Many sites are working to address the shortcomings. Focusing on the growth of DeFi, and DEX, it is safe to say that IDO will have a promising future in 2023 and beyond.
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