Thus, the initial decentralized exchange offering (ido token launchpad development) in cryptocurrency is the way to issue tokens on DEX , where there are no middlemen. This solution makes it possible to arouse the interest of a greater number of users, since a high percentage of intermediaries in classic cryptocurrencies became a strong argument for “going to DeFi ”.
Compared to the IEO and ICO , which require an initial waiting period, the IDO provides immediate access to liquidity and trading. IDO also streamlines the user experience by offering support for a secure wallet and integrated trading platform in a single interface. IDO can support various types of wallets, which simplifies user interaction.
In this way, IDO facilitates the launch of new projects and simplifies its relationship with users. This is what allows this format to gain popularity among cryptocurrency developers and enthusiasts.
After all, decentralization was the reason for the initial popularity of cryptocurrencies and their best features took shape in DeFi projects .
The first project to get off to a successful start in the industry is the Raven Protocol , although the developers refuse to call it that. Raven is a decentralized and distributed deep learning neural network protocol. With RAVEN ‘s own token , participants are rewarded by sharing computing resources, while the utility token is used to train the AI .
Another successful launch of the IDO project , despite having teething problems, is the UMA universal market access protocol . It allows DeFi developers to create Ethereum assets , which are collateralized tokens whose value changes. In April of last year, the project launched the sale of tokens through the Uniswap decentralized exchange with an initial price of $0.26 per token. To get that price, UMA had to put $535,000 worth of Ethereum into a newly created liquidity pool. And guess what, it worked! A queue was formed to be able to buy the token. Traders attacked ido crypto launchpad service, but the price stabilized at $1 per coin. UMA currently has a market cap of over $850 million and the value of a single token is just over $14. Against the background of the general decline, it is a very good indicator, and the dynamics show steady growth.
Another example is SushiSwap , a decentralized cryptocurrency exchange built on Ethereum . The project is trying to take Uniswap ‘s place as the most popular Ethereum -based decentralized exchange . Last September, SushiSwap users moved more than $1.14 billion of locked crypto assets (i.e. deposits frozen for revenue) from Uniswap to the SushiSwap platform .
Interestingly, instead of holding an ICO , the platform rewarded Liquidity Providers (LPs) on Uniswap by placing their LP tokens on SushiSwap . In exchange, users received rewards in SUSHI tokens. During the first two weeks of SushiSwap , 1,000 SUSHI tokens per Ethereum block were issued approximately every 12 seconds to users who placed their Uniswap LP tokens into the initial SushiSwap protocol . This was an obvious victory. Of course, “Sushi” didn’t outdo “Unicorn,” but it did make a strong statement.
How to launch the IDO?
Now let’s talk about the development of the initial DEX offering . Is that how it works. The projects reach the general public through startup platforms or specialized IDO platforms . Under certain conditions, investors like you and me can buy the tokens before they hit the market. IDO token is released on DEX .
There are two different public sale practices:
1. The issuer submits limited offers to sell at various levels of price appreciation.
2. The issuer organizes an auction in which the sale price is determined by supply and demand.
Trading takes place on DEXs (decentralized exchanges) themselves based on an Automated Market Maker (AMM) such as Uniswap or Balancer . The issuer creates a liquidity pool using the tokens and sales proceeds to create a liquid secondary market for the token.
Liquidity incentivization refers to a wide range of programs that a token issuer can use to launch a product or service. Liquidity mining (i.e. a way to profit from “freezing” coins within a project to provide liquidity) is very popular and can create a stimulus for people to support the platform.
How to check a project?
As I have mentioned before, the new tools can be part of a fraudulent scheme. Even though the DeFi fundraising format is much better protected against scams than its predecessors, it doesn’t hurt to know the top tip for combating fraudulent developers. One of the most popular ways to get easy money on IDO is posting fake contract addresses. This is the address of the actual contract that controls the logic of the token.
Typically, for every new cryptocurrency listed on launchpad development company, there will be three to four fake cryptocurrencies with the same name. Therefore, it is crucial to double and triple check the addresses on the contract. There is an easy way to do it: check your identity in social networks, messengers and web pages. Different addresses=total scam.
The future of IDO
In the DEX model , where you don’t need a permit to set up a fundraising event, you do manage to attract them. Right now, only DeFi projects raise money through IDO . In the future, he knew
I ngo that projects from other areas of cryptocurrency will be able to raise funds in this way as well. By the way, if you want to know which startup in the DeFi segment is worth looking at in 2021, I suggest you check out this article .
IDO is a more tempting option to raise capital for startups. Such a model has a chance to gain a foothold in the market. IDO platforms with governance mechanisms can lead to increased popularity of DEX initial offering .