Fundraising is the concept of collecting funds from donors or businesses. Using these tokens that have inbuilt benefits grants the holder to access a service and share their outcomes by project earnings. The market price of the token will increase the demand for the user’s benefits. With the huge success of Bitcoin and Ethereum, many of the companies have used this cryptocurrency for raising funds through token sales. This process is called fundraising through token sales.
There are different types of fundraising models such as
- Initial Coin Offering (ICO), is currently trending and considered the best fundraising model by issuing utility tokens/coins in the blockchain platform. It is entirely decentralized and overtakes traditional finance systems like banks. It benefits the investors with high liquidity after the launch of CEX.
- Security Token Offering (STO), has great value and demand in the crypto market since it is the best fundraising concept for investors to generate profits in less time. The STO tokens are utilized to raise funds for their projects or make a public offering for their company shares. It has passed the Howey Test and is highly secured for seamless transactions to benefit the users.
- Initial Exchange Offering (IEO) is an excellent fundraising method in the blockchain world that lured millions of users’ attention in less time. The IEO runs on a centralized platform that supports crypto exchanges to benefit users from purchasing at the best price value. It is highly secured for transactions and also prone to risks such as theft.
- Initial DEX Offering (IDO), is the latest form of fundraising method in the crypto market. It generates immediate liquidity and trading on any DEX to attract users. It helps the investors by offering an exchange with an unlimited token stack.
WHAT IS THE INITIAL DEX OFFERING(IDO)?
Initial DEX Offering (IDO) is a type of token sale that indicates any type of assets that can be hosted on a decentralized exchange (DEX). Using an IDO, it launches a token sale through a decentralized liquidity exchange and it assists the user make a sophisticated decision over digital assets that will help to engage more communities against the user’s products and services. This decentralized liquidity exchange will enable startups and companies to launch a token and access immediate liquidity. By using this IDO, tokens will be issued through decentralized exchanges like Uniswap and Binance.
BENEFITS OF INITIAL DEX OFFERING(IDO):
The primary benefits of IDO are listed below:
- IMMEDIATE LIQUIDITY:
It is known that insufficient liquidity can be disastrous for the token price. Therefore, a liquidity pool promises liquidity at every price level with no slippage. To enable swapping, the project needs to acquire some initial liquidity for its liquidity pool. - LOWER COSTS:
Since this type of fundraising model uses liquidity exchange, the user only has to pay a few amounts of gas fees for deploying a new smart contract. This smart contract controls the liquidity pool and the assets token (Automated Market Maker). - IMMEDIATE TRADING:
If the investors launch the project, they can immediately start trading the token. Buyers of tokens will have the opportunity to sell their tokens for a higher price. The price value of the token will also increase during the IDO. - OPEN AND FAIR FUNDRAISING:
Projects fundraising using the IDO crypto model often don’t have to rely on traditional private investments to kickstart their operations. IDO allows investors in a public sale and it will help to buy a large number of tokens for a lesser price, anyone can organize or participate in an IDO, the value of the token will get an increase when the token goes for a public sale.
INITIAL DEX OFFERING (IDO) DEVELOPMENT:
Initial DEX Offering Development or IDO Development is a new fundraising model in the decentralized ecosystem and it gives fundraising opportunities for the development of the user’s decentralized exchange platform. It is a new type of distributed ledger system that offers powerful security for the user’s digital asset. To develop an IDO, the user should have extensive knowledge about the fundraising processes such as ICO, STO, and ILO. When the knowledge of the fundraising processes has been gained, the user should search for IDO development companies that provide Initial DEX Offering services. The IDO development companies should be among the best IDO development companies and they should excel in delivering the best possible desired outcome for the customer.
Launching your IDO – Steps to Follow
The Initial Dex Offering can be launched with getting ready with the following components. Since the IDO is based on the Decentralized Exchanges there is no need for an exclusive website to showcase the details of the IDO. It can be done in the Decentralized Exchanges.
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- Building an Idea
To launch an IDO, you should work on an innovative idea that can make something better in the existing crypto space and the idea should be efficient enough to attract investors to invest in the IDO.
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- White paper
Based on the built idea , an exclusive whitepaper should be prepared . The whitepaper must have had a detailed explanation of the idea. Technical possibilities, it possesses and how it makes justify the goal that it has set and everything should be written in a more concise manner.
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- Pick your Blockchain
The entire process of IDO needs blockchain association, since it is based on the decentralized exchange, the need for blockchain becomes essential. There are a variety of blockchain networks in the industry you need to pick the more suitable one.
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- IDO token
IDO token should be developed with high technical expertise, as the token development involves various integration and component developments. The IDO tokens come in hand in various situations.
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- Utility token
To attract more investors in order to get more funding, you can offer them the IDO token developed as a utility token which the user can use to avail of particular services from the IDO launcher. This token can also be used for various purposes like offering stake to investors.
These are the mandatory components of the IDO , and if you have them in your hand , you are all set to launch your own IDO.
Example of IDO
IDO has several examples; here are some,
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- Raven Protocol
Raven Protocol belongs to Binance, and this was a profound learning training protocol to establish cost efficiency. It came into the listing on June 17, 2019, for 24 hours; the value reached up to 0.00005 BNB per Raven token.
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- UMA protocol
UMA-based ethereum platform is for distributing and making the trade with synthetic assets.
Advantages of the IDO
The Initial DEX Offering has various advantages that can support both the one who offers it or the one who invests in it. Here are some advantages of IDO,
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- Feasible Launching services
The IDO is one of the most feasible crowdfunding platforms since it is launched on the Decentralized exchange, the need for a website or any other service that explains the concept of the IDO is not needed and more than that IDO’s service charges are very low compared to others,
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- Liquidity
The Liquidity in IDO is the biggest advantage. There is no need for external support to perform transactions as the DEX depends on the hurdles directly. So the liquidity is very high in the IDO.
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- Security
The Blockchain and decentralized structure in the DEX will protect the IDO and its services from any kind of adversaries. They are equipped with exclusive protocols that can defend against any kind of vulnerability. Scripts like Anti-Distributed Denial of Services and Ant-SSL will work on mitigating the greatest threat attacks of the existing cyberspace.
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- Multi-platform support
IDO can be accessed by any platform or device. They can be viewed via browser or applications and it supports all types of major operating systems like Android, IOS , Linux, MAC and windows.
FUTURE OF IDO:
IDO has the ability to emerge as a frontrunner in giving several options for the launch of new tokens, it will also address the issues in an ICO, STO, and also in IEO, by using this IDO decentralized exchange model, users would not need permission to organize the fundraising event, it will also eliminate the variations in the token prices, by making use of KYC Verification, investors can gain much more control over their token sales. Initial DEX Offering (IDO) is a more attractive option for the feature of releasing tokens in the available crypto market. Another important fact is about liquidity, the contribution of liquidity is made use of stable coins to the high cost to stabilize the stable values.
WHY IS THE INFINITE BLOCK TECH CONSIDERED AS BEST IN IDO DEVELOPMENT?
Infinite Block Tech is one of the best Initial DEX Offering service providers in the crypto market. We are comprised of a team of developers with solid experience and extensive knowledge. We have gained mastery over helping several clients across the globe to launch their IDO development platform successfully and raise significant capital for the ventures. Our technical team has professional experience gained from all over the world that will help the client in all possible ways. We customize and develop the token to your own specifications. Our optimized team helps you to succeed and stay ahead of the competition in the digital market.