Understanding What IDO Is All About And Benefits Of IDO Token Launchpad
Unsurprisingly, the IDO token launchpad is getting much attention from a wider group of people. Through this, individuals would be able to raise capital for their crypto-based projects upon drawing the attention of a larger number of investors. With the emergence of a new project, there is such a huge craze and demand for such decentralized-based fundraising platforms. Are you the one who has an aim to capitalize on the current rage? Beforehand, learn about what the Initial Dex Offering (IDO) is about alongside its comparison with Initial Coin Offering (ICO), Initial Exchange Offering (IEO), Security Token Offering (STO), as well as how to begin with IDO launchpad development.
Initial Dex Offering (IDO) — A Brief Introduction
Initial Dex Offering in short IDO, is seemingly the latest fundraising activity, overcoming the shortcomings of successor fundraising approaches such as IEO, ICO, and STO. The capital raising could be carried out on the platform — the IDO launchpad. It is a decentralized stage connecting project holders and investors, paving the way for crowdfunding. It is also known by the term crypto launchpad as project holders or startups, or entrepreneurs will be able to raise funds for their crypto-related projects from interested investors.
Workflow Of The IDO Token Launchpad
With a brief introduction about knowing what Initial Dex Offering (IDO) is, let’s now look at how the IDO token launchpad will function.
The beginning stage is that the project holders have to get their projects to be listed on the IDO launchpad. For this, they have to submit the necessary details about the projects, which will then be reviewed and verified by the allotted team for authenticity.
With the approval, the IDO token representing the project will be listed. On the counter side, the investors will be able to find a plethora of projects and will access to know what the project is about. Through this, they would get to decide whether or not to invest in it by buying the token listed on the project.
The whitelisting investors have the chance to participate in the funding rounds and get a hold of the token. Thereafter, the investors could trade the token on the decentralized exchange, which provides a seamless transaction experience. Adding to it, through the peer-to-peer system, the transactions will be carried out in a decentralized way, i.e., without the involvement of third parties or intermediaries.
The guarantee and authenticity of the projects are what make the IDO launchpad more reliable to opt for. Through this, investors would expect a better return on investment.
ICO vs IEO vs STO vs IDO
Initial Coin Offering (ICO)
ICO is a short form of Initial Coin Offering, which is a capital-raising type. In this process, the individual or companies/startups will be able to put forth their blockchain or crypto-related projects. Moreover, the investors can purchase the token in exchange for cryptocurrencies like Bitcoin, Ethereum, and others. Being the pioneer, it has opened a gateway for other fundraising activities like IEO, STO, and IDO. Its nature is decentralized as there are no intermediaries.
Initial Exchange Offering (IEO)
IEO is an acronym for Initial Exchange Offering, which is a centralized platform in which new projects could have an opportunity to raise capital. This launchpad includes exchange fees and a considerably expensive listing. The IEO tokens come with perks such as immediate trading and more likely, there will be no fraudulent projects to be listed on the platform, ensuring trust among the investors.
Security Token Offering (STO)
Security Token Offering is a method of capital raising in exchange for cryptocurrencies. This fundraising approach is quite more secure than an Initial Coin Offering (ICO). It is specifically designed to eliminate fraud activities as there will be no spam projects to be listed on the fundraising platform.
Initial Dex Offering (IDO)
As mentioned earlier, Initial Dex Offerings (IDOs) is a decentralized fundraising platform with no exchange fees. This platform could entitle project owners to list high-quality projects, and thereby investors will buy the token. This platform is much suitable for DeFi projects.
Benefits Of The IDO Token Launchpad
Swift Trading
As soon as the IDO token is live, the investors will be able to trade instantly. In addition to this, the investors would be able to buy a large number of tokens even at a lower price. Thereafter, they can sell these tokens at a higher price.
Immediate Liquidity
The IDO token launchpad requires instant liquidity through the liquidity pool. The IDO tokens of new projects are able to pair with any type of altcoins that are recognized by the decentralized exchange (DEX). This will eventually soar the token value to a considerable extent.
Credibility
In order to launch the project on the decentralized fundraising platform, the projects should be submitted for approval. Henceforth, only feasible and legitimate projects will be listed on the launchpad.
Fair fundraising approaches
The capital-raising approach on the IDO launchpad seems to be fair. In this, investors will be able to buy the IDO tokens at a fewer price and then, with the value of the token raises, they could sell these at higher prices. This is to be carried out when the token is put for public sale, letting anyone could have the opportunity to buy the token. It most probably relies on the concept of how soon they buy the token, and they get the chance to sell these at possible higher prices.
Finishing Touch
In this blog, we have covered a brief introduction about Initial Dex Offering (DEX) and the fundraising platform’s functionality alongside the benefits of the IDO token launchpad development.
Do you intend to deploy the IDO launchpad? Take your first move! Find a suitable one and get the launchpad developed from the market full of the best IDO Platform Development Companies or agencies. Forge ahead!
