Initial farm Offering is the new type of fundraising platform that is used to generate funds for the participation of projects.
With the assistance of Initial farm Offering, the users can take part in the pre-sales hosted via DeX to obtain tokens before listing them on the respective platforms. Initially, the DEX teams will thoroughly analyze the projects before hosting an official IFO. While the analysis process is initiated, it does not provide a guarantee for the success of the token or integrity of the token, as users should possess due diligence while taking financial steps.
The investors investing in the platform trust the fundraising companies due to the accurate checking by the exchanges. Also, the investors proceed through KYC/AML, therefore, ensuring secured investments.
KYC/AML implemented exchanges allow the investors to initiate the verification process in the platform and ensure that the background checks are safe for the investors.
The listing process in this fundraising platform is very simple as the exchanges immediately open for the tokens to the secondary market.
The IFO fundraising platform initiates instant liquidity. The private investors buy a large number of tokens for a less price and the value of the token increases in a public sale.
Since IFO functions in liquidity exchanges, it costs fewer gas fees for deploying a new smart contract. This smart contract provides control over the asset tokens and liquidity pool.
The user is required to provide liquidity, before taking part in an IFO fundraising event. It is used to buy the required token to participate in the Initial Farm Offering. In the case of PancakeSwap, which is the primary platform used for launching IFOs, the user must provide liquidity using a digital wallet such as TrustWallet. Once the liquidity is provided, fresh tokens can be bought using the platform’s liquidity pool where the tokens are generated after the addition of liquidity and at the final stage, the users are provided with the tokens after the Initial Farm Offering event is completed.