Though cryptocurrencies are doing well now, there were times in the past when they struggled to meet the funds they needed for the development process. Earlier in 2013, Mastercoin launched its first token sale or Initial coin offering to raise funds. Later that year, several crypto projects came out. At the same time, the following year saw a lot of Rugpulls, creating a fear among the investors. That is when the Initial DEX offering came out, and it is still ruling as the best crypto fundraising concept so far. IDO Token Launchpad development thus started, and with the surge in the crypto population, there is a definite need for it.
This blog is here to give all the insights on the Initial Dex offering launchpad that is trending now in the crypto community. Dive into the pool of information and educate yourself before you get into the development process.
Initial DEX Offering- The exceptional concept
Initial Coin Offering was just doing fine initially. There were many successful projects like Master coin, which achieved hefty funds for its development. But soon many took advantage of the loopholes of ICO, and there were a series of Rug pulls, which created strong distress among the investors in the blockchain community. To overcome this situation, an Initial Exchange Offering was introduced. While ICO was too liberal, IEO stood the opposite giving a tough time to emerging small projects.
ICO, which kept the developers anonymous, became dangerous, while IEO kept the fundraising too centralized. That is when Initial DEX Offering was introduced. In the Initial DEX offering, the investors will have full control over their investments while the project holders can raise their deserving funds with increased liquidity of the project. There are many factors that contribute to making IDO one of the most preferred and successful crypto crowdfunding concepts right now.
Factors supporting IDO
Some intersecting factors that make Initial DEX Offering the most preferable for crypto fundraising campaigns are given below
For Investors
- Investing in a crypto project through a decentralized launchpad after several vetting processes will offer a reliable environment.
- Investors are given with immediate trading opportunity that they can withdraw their investment any time they want in the decentralized exchange it has been launched
- IDO offers a better investment opportunity that investors can earn a passive income better than cryptocurrency trading.
- Investors get to buy the IDO tokens for a cheaper price during the IDO. The early investors will be rewarded with a rewarding product or a service from the project once it is launched in the market.
For the Project developers
- They offer better and immediate liquidity to the tokens than any other existing crypto fundraising concepts like ICO, IEO, etc
- It eliminated the third party influence over the fundraising campaign that it is completely up to the investors and the project owners
- Projects need not pay high listing fees on the Decentralized exchange, unlike IEO which requires the project to pay a hefty listing fee.
- Does not need a centralized authority’s permission to get listed on the platform, and the listing process is completely decentralized making way for small crypto projects to get the attention they deserve.
Why is IDO considered a fair concept?
During a token sale, many crypto users tend to buy most of the tokens during the pre-sale and small-scale investors lose their chance to participate in the token sale. To avoid this issue, many IDO launchpads offer a fair whitelisting process where the users will have to register and wait to participate in the sale. The users will have to verify themselves using KYC before participating. The working of Initial DEX Offering is given below
- The users will have to register themselves on the dex platform and put forward their requests to participate in the IDO.
- They will have to connect their cryptocurrency wallet to the IDO token launchpad
- Many launchpads will request the users to stake the native token of the dex platform in the staking pool.
- The users will be categorized based on that and will be whitelisted according to their category thus providing a fair allocation process.
- This liquidity pool contributes to the liquidity of the IDO token that is going to be launched by giving an immediate trading option once the token generation event is completed.
Why is IDO launchpad development beneficial?
You might wonder why IDO launchpad development is a trending topic now. It of course will be a great contribution to the blockchain community, but how will it perform financially? Here are some facts that you should know about launchpads,
- It will be a platform that highlights the promising De-Fi projects that have been vetted and declares the project safe to invest in.
- While the platform contributes to the liquidity of the IDO token, it requires users to own the native token to stake them. This contributes to the revenue of the platform
- The liquidity of the native token will also increase with the increased number of investors and projects that get listed on the platform.
It is also important to take into account the blockchain of the IDO launchpad. Since many projects are using diverse blockchain networks, a Multichain IDO launchpad will be a wise choice when considering the development process. Launching an IDO launchpad on an EVM-compatible blockchain will allow you to host projects built on blockchains that are also EVM-compatible.
Takeaway
Since blockchain is creating a new revolution with Web 3.0, entering the crypto revolution will be beneficial for aspiring entrepreneurs. IDO token launchpad development is recently trending and if you are looking for the right time to start the process, this is your sign. It is also important to do your research by visiting various popular IDO launchpads to look out for their working mechanism and features so that you can get a better map for your launchpad.
Get yourself an experienced blockchain developer to kick start the process. You can take your ideation based on your research and have a discussion on the development process.
