When it comes to coming up with progressive ideas for bootstrapping businesses and raising money, the bitcoin community has excelled.
Initial coin offerings (ICOs) began to surface in late 2017 and early 2018, with teams raising funds by selling a portion of their total token supply to the general public. As soon as these newly produced coins were listed, excitement was uproar as their value skyrocketed.
What is an IDO?
IDO is an acronym that stands for Initial DEX Offering. With this new fundraising approach, the crowd sale patterns tend to provide further liquidity for digital currencies and enable faster, more open, and fair trading.
Over the last four years, token public sales (also known as ICOs) have evolved into a new form of generating funds for crypto ventures dubbed the IDO model.
Most of the time, investing in an IDO may pay off handsomely for investors, but looking for the next big x100 crypto gem can be time-consuming.
History of IDO
Notably, the initial idea of early DEX offers has evolved dramatically over time; it now resembles nothing of what it was meant to be back in the days of the original IDO.
ICOs and IEOs have been superseded by initial DEX offerings, which attempt to raise money and launch a startup. While ICOs and IEOs sell tokens before placing them on a decentralised exchange (DEX), IDOs list them instantly, hence the name.
Raven Protocol, the first-ever IDO, took place in June 2019. The protocol’s developers selected a decentralised exchange called the Binance DEX. Traders may purchase the token until the hard cap is hit, at which point it would be removed from the exchange. This is how most platforms handled their initial IDOs.
Theoretically, using this method of fundraising has several advantages, including the following:
- Trading at a rapid pace
- Liquidity in a hurry
- Fundraising that is both transparent and equitable
Investors, on the other hand, were dissatisfied. Because these token sales would be snapped up in seconds, the ordinary Joe investor would have little opportunity to get a piece of the action. Bots and insiders were suspected of scooping them up, and the business had to change to meet the increasing demand.
As a result, IDO launchpad platforms, in late 2020 and early 2021, were born.
ICOs and IEOs have been superseded by initial DEX offering, which attempt to raise money and launch a startup. While ICOs sell tokens before placing them on a decentralised exchange, IDOs list them instantly. Initial DEX offers (IDOs) are very similar to initial exchange offerings (IEOs) in their most common form, with a few crucial distinctions.
Investors pay in advance for their tokens, but they receive them during the Token Generation Event (TGE). When an IDO is finished, it is listed on the exchanges right away, letting investors get their money back faster than possible with an initial coin offering (ICO).
Stay tuned for more information regarding our IDO! Fintropy will perform an IDO during Q4 of this year.
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