May 21, 2021
IDO is the abbreviation for Initial DEX offering, whereas DEX means Decentralized Exchange. IDOs are the tokens that symbolize the asset in DEX. In simpler terms, IDO is nothing but a combination of ICO & IEO. Swapping of the tokens is possible in decentralized liquidity exchange by using the liquidity exchange process. Due to the swapping process, the token value may change from time to time. The companies can initiate a new token and obtain liquidity. DEX functions on smart contracts. Many IDO development companies are stepping forward to invent a unique token for the contentment of the buyer.
Difference between IDO, ICO, and IEO:
There are three categories of fundraising systems, namely IDO, ICO & IEO. IDO and ICO are decentralized platforms whereas IEO is a centralized platform. Efficient listing is possible in IDO, whereas expensive listing and liquidity premium in IEO & ICO, respectively. IDO is a representation of digital assets, but IEO is a direct exchange. It is impossible to list a token with competing exchanges in IEO, whereas there is no such crucial condition in IDO.
Features of Initial DEX Offering:
Immediate liquidity is possible in this offering.
The trading process is quick & flexible.
Highly secure transactions are possible. Information theft is not easy.
The exchange fee is entirely free of cost. Only payment gas is requisite in the case of a smart contract.
Exchange with a boundless token stack is feasible.
Benefits of IDO:
Fast trading: Immediate trading is possible in IDO. So, it is viable to procure the tokens swiftly. The buyer can sell the tokens at a higher rate whenever possible.
Immediate liquidity: The liquidity pool guarantees liquidity at zero cost. Immediate liquidity is one of the most expected benefits of the common public.
Open & fair process: Anyone can arrange or participate in this process. Without a third party, involvement trading is possible. IDO doesn’t rely on private investors alone.
Integration: It is possible to combine IDO easily with other types of decentralized tokens.
Composite: IDO is a composite mixture of two separate crypto models, and so it is amenable to all sorts of people.
Low cost & secured listing: The listing is possible at a meager and safe & secure.
Success percentage: The project owners can achieve a high success rate and even invent new tokens.
Initial DEX Offering Development:
IDO development is nothing but a fundraising look-in the decentralized exchange platform, and it reflects a particular person’s asset. The buyer & seller can trade with a sizable number of tokens spontaneously.
IDO development company:
The demand for IDO development service has increased swiftly. This higher demand enables the buyer and seller to have a structured system. The most popular IDO platforms of 2021 are:
Ethereum: Multichain support makes the Ethereum platform successful and more demanding.
Polkastarter: Polkastarter is for cross-chain token pools. There are various functions like auction, which enables projects to raise capital efficiently. The total market capitalization is around $949M with an average of 690 participants.
TrustSwap: The latest IDO offerings by TrustSwap is MoFi, where the trading is by the wallet. Apps like uniswap and similar wallets enable the transactions swiftly. The app is available in both the play store and app store. It is wholly related to the DeFi ecosystem. The average market capitalization is approximately $2.40M with 189 average participants.
Paid Ignition: This platform is available in Polkastarter. Paid ignition updates the availability of tokens on the social media platform. The total market capitalization is $139M with an 1130 average number of participants.
Binance smart chain: FairMoon is one of the best platforms in Binance smart chain. Binance smart chain offers various types of IDO from time to time.
Other platforms that offer IDO are Tron, Duck DAO, and many more.
How to initiate an IDO:
The token issuer organizes initial DEX offering development. The process is either in an online format or offline format. The general steps carried in the process are as follows:
Strategic plan: The two prime goals should be buyer’s satisfaction and upgrading the trade network. A clear and impartial plan makes the IDO development even more successful.
White paper: Initiation of unique and attractive white paper drags buyer’s attention.
Token: Blockchains like ethereum design the needed tokens for the particular project.
Feasibility: The feasibility & utility services enable buyers to choose the appropriate token.
Support & service: The support system yields a successful launch of the IDO project. The support service enables a confused buyer to buy the correct token at the right time making the trading process easier on both sides.
Examples of IDO:
The first IDO was on Raven Protocol. The final value of each Raven token is 0.00005 BNB. Raven protocol is a deep-learning protocol that helps in teaching cost-efficient networks. UMA protocol, an Ethereum based platform, is one of the examples for IDO development. The initial token price of UMA was $0.26.
IDO is a revolutionary model in which fundraising and trading are open to the common public. The disadvantages of IEO & ICO have never been taken care of in IDO fundraising events.