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.
Investing In An IDO – Steps to Follow
IDO investing involves specific steps to follow. They involve
✦ Whitelisting Process – based on the launchpad, investors should undergo specific tasks to complete the whitelisting process.
✦ KYC Validation: Know your customer is the most essential step to be completed in IDO investment. The investor should undergo this KYC process and should be allowed after the successful completion of the process.
✦ DEX and Other Exchange Exploration: IDO investments will require token exchange meant, exploring the decentralized cryptocurrency exchanges will aid you during the process.
✦ Token Requirement: To invest in IDO, investors should hold required tokens to make themselves eligible for the process. This varies depending on the launchpad.
✦ Ready to use the wallet – Investing in IDO involves investing and receiving tokens. This can be done only via a web 3.0 wallet.
Example of IDO
IDO has several examples; here are some,
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.
UMA-based ethereum platform is for distributing and making the trade with synthetic assets.
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 stablecoins 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.