How to Develop the Best IDO Launchpad?
Initial offerings started as a feature to enable companies to raise capital by selling shares of their business. The whole financial structure around stocks evolved around such small stakes in businesses. Later, as blockchain technology looked to delve into the financial sector due to the issues associated with traditional banking, cryptocurrencies emerged. With blockchains finding more applications, startup enthusiasts looked upon blockchains for their business. When it came to fundraising, new kinds of initial offerings were formed with specifications allowing them to be applicable to the crypto world. These included initial coin offerings (ICO), initial exchange offerings (IEO), and initial DEX offerings (IDO). Each of those was developed in the same order to combat problems faced by its predecessor.
With IDOs, came the platforms that enabled hosting these campaigns. These were called IDO launchpads, and there are a lot of them across blockchain networks. In this blog, we will see more about developing an IDO launchpad and some popular blockchains among IDO launchpad firms.
IDO Launchpads — In Detail
- Initial DEX Offering launchpad is a platform that assists with raising funds for crypto-based projects. The launchpad utilized decentralized exchanges for the purpose as they ensure security and ease of transactions through decentralization.
- Major IDO launchpads in the current scenario include DAOMaker (Works on Ethereum), BSCPad (Works on Binance Smart Chain), and Solanium (Works on Solana).
- IDOs came up as a result of troubles associated with their predecessors, ICOs and IEOs, using which many scams and rug pulls had occurred.
- The method uses the decentralized nature of the exchange that the assets are held on, thus enabling a crowdfunding platform without the involvement of a third party.
- IDOs feature some benefits compared to earlier capital-raising techniques, such as the possibility of trading quickly, having immediate liquidity, and an open and fair process.
- The first IDO campaign happened in June 2019, where Raven Protocol, a company working on making larger computational processes easier by dividing the process into smaller pieces.
- The support for IDOs is due to the fact that most IDOs have a lower initial cap level, meaning that even if the project goes up to 100x, the total market cap would not be so high so that investors would not sell all at once, causing a spiraling effect.
- Also, projects are launching on multiple launchpads, meaning that the business owners want to involve themselves across blockchains and attract more investors. Also, from an investor’s view, such projects are authentic, as they are vetted into the decentralized exchange by automated smart contracts.
Steps for Developing an IDO Launchpad
- Any idea starts with exploring it, and it is the same here. Evaluate your idea and decide how to take the project with in-depth planning and what your requirements are. This includes selecting the blockchain you would be based on.
- Frame the whitepaper for your IDO launchpad as it portrays your business to the world. A great whitepaper can prove to be decisive in making your venture a success.
- Your IDO launchpad can either be developed from scratch or customized from an existing ready-made solution. This depends on how quickly you need to be in operation and your technical preferences.
- Creating tokens for your launchpad follows next. Here, you should decide on what kind of attributes your tokens should hold.
- The important phase of testing comes next, and you need to ensure that various test cases are evaluated on your platform multiple times so that the platform is free from any defects.
- Deploying your IDO launchpad on the blockchain is the final step, and frequent upgrades have to be given in order to work smoothly and cater to customer queries.
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Prominent Blockchains That Host IDO Launchpads
- Ethereum is the legend of the blockchain world, with more than 90% of the global transactions for blockchain-based applications occurring on it.
- The blockchain also features a great system that offers security and robustness while ensuring that the quality remains intact.
- Ethereum-based IDO launchpads are some of the most used in the crypto world due to their longevity and reputation for their features.
Binance Smart Chain (BSC)
- Binance Smart Chain (BSC) is a chain that runs parallel to the Binance blockchain, and so it picks all the good features of the main chain.
- Its competition with Ethereum stands true in IDO launchpads, too, as the chain features the second-most number of IDO tokens made, only behind Ethereum.
- The BSC is known for its faster transactions, which gives an extra edge over other established blockchain networks, and such a feature is essential when it comes to IDO launchpads.
- Formerly known as Matic, Polygon is a layer-2 protocol of the Ethereum blockchain which promises to tackle the problems related to gas fees and transaction speeds.
- The chain’s security and robustness are borrowed from the Ethereum chain as Polygon runs on it, and its own technology ensures that Ethereum’s problems are resolved.
- IDO launchpads running on Polygon can have the best of both worlds, and so, they can work efficiently with the possibility of having a greater investor base for the projects they host.
As you read across this blog, you might have got a basic understanding of IDO launchpads and the process associated with developing them. Still, if you need assistance in realizing your IDO launchpad, it is best to approach an expert firm specializing in blockchain-related applications. Along with this, you should consider the fact that no legal regulations exist in this area, and cryptocurrencies involves high risk due to their nature. Therefore, you should be ready to handle any tough situation and follow rules that might come up in the future.