IDO is a form of crypto token offering that happens on a decentralized exchange. As a spiritual successor to ICO, STO, and IEO, it provides investors with access to immediate liquidity as well as faster, fairer, and cheaper trading.
Since its first appearance in June 2019, IDOs have been gaining popularity among investors on decentralized exchange platforms and have become a standardized fundraising approach for many new crypto projects.
If you're still not yet familiar with what is an IDO coin and wonder whether you should invest in tokens through this crypto, continue reading and Coin568 will answer every question you may have!
What Is An IDO Coin?
Initial DEX Offerings, or IDOs for short, is a term to describe a method for companies to receive financing from individual investors via Decentralized Exchange (DEX) platforms.
this coin features a way for fast and cost-efficient token distribution and is considered by many as a replacement for former methods of fundraisings, which are Initial Coin Offerings (ICO), Security Token Offerings (STO), and Initial Exchange Offerings (IEO)
As Initial DEX Offering projects take place on decentralized exchange platforms, they are safe from any involvement by third-party retail distributors. Instead, backers can purchase tokens using their capital through the platform, and the DEX will automatically complete the final distribution and transfer the token to the investor's crypto wallet. This process occurs via smart contracts, which are stored on the blockchain.
What Are The Purposes Of IDO?
IDO is designed to improve upon the shortcomings of crowdfunding models that came before it, namely ICO.
After its first spike in popularity in 2017, cryptologists began to notice several flaws in how ICO operates. They are centralized, lacks privacy, are vulnerable to theft and human errors, and include third-party discrimination.
This new technology aims to tackle the drawbacks of ICO with its decentralized nature. Companies can now directly release their product on the blockchain without dealing with third-party intervention. Moreover, since there are fewer steps involved in the process, it also eliminates the risks of hackers attacks and human errors.
On top of that, this offering approach brings many benefits to not only project developers but also investors and DEX launchpads.
Through Initial DEX Offering, users can easily buy tokens of potentially profitable crypto projects in fairness. If everything is smooth sailing, the token will increase in value and bring revenue back to them.
To Project Developers:
this crypto can be a fast and reliable way for startups to receive financial backing. On top of that, provided they choose a reputable exchange platform to distribute their token, the project will receive marketing support from the DEX platform to raise even more investors, thus more funds for their project.
To Decentralized Exchange Platforms:
Launchpads can gather more traffic and transactions on their platform by continuously hosting projects running this popular offering model.
The more IDO projects implemented, the larger DEX platforms can expand their ecosystem and reach.
Popular IDO Launchpad Platforms
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Here are the TOP 5 trustworthy IDO launchpad platforms which have hosted many successful projects for you to consider with your investments:
It became a well-known launchpad platform with a reputation for successfully launching 15 projects, including Orion Protocol, My Neighbor Alice, Seascape, etc.
Considered as a pioneering launchpad, Polkstarter is one of the first to feature the coin’s projects on its platform. Projects hosted on this platform usually receive massive followings and exponentially community growth.
However, as there are large demands to join Polkstarter, it can be competitive for new investors to acquire tokens on the platform.
BSC Pad is the first launchpad to build its projects on the Binance Smart Chain. A notable feature of this launchpad is that the IDO process will be divided into two rounds:
Coinlist is regarded as the most widely known and trusted platform there is. Because of that, users might have to go through some difficulties in order to purchase an IDO token on the launchpad, but the trade-off is well worth it in the form of attractive profits.
Most projects chosen to be featured on the platform have one thing in common that is impressive profits. Because of that, investors from all over the world pay extremely close attention to Coinlist and the next project to be featured there.
DucksSTARTER From DuckDAO
DucksSTARTER is a member of the DuckDAO ecosystem. The platform is a launchpad for multiple famous and profitable projects such as PolkaFoundry, Shadows Network, and Franklin. DucksSTARTER is a solid choice of platform to invest in your next token and has received tons of attention from knowledgeable investors.
The Bottom Line
All in all, when compared to its predecessor, IDO comes with many positives to either investors, developers, and DEX platforms.
With that said, there's still work to be done in improving it, which IDO launchpads are actively trying to do. For instance, the simplicity in establishing projects on DEX platforms means investors are more susceptible to scamming schemes. So it is wise for you to thoroughly do your own research before committing to this modern technology.
That is it for our blog, Coin568 hope to have shared some useful knowledge about what is IDO coin?, the purposes of it as well as helping you find a potential project to invest in. May luck and fortune be in your favor!
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