At this time everybody is curious about IDO. What is IDO and how it works??🤔🤔🤔
So, let’s go and learn about IDO (Initial Dex Offering). So, guys IDO is nothing but the updation or you can call the successor of the ICO in the fundraising system of any companies for the projects it looks like an ICO (Initial Coin Offering), IEO (Initial Exchange Offering), and STO (Security Token Offering) but actually it is working different from these.
In any company if they need funds so they go to the banks or to the investors for the funds for there projects or to the venture capitalist for the funds if they agree with your project idea then they will give you funds other than they refuse for the funds.
But when the cryptocurrencies are come to the market then the companies use them as the fund raiser for their projects. The Companies start creating crypto token and release them on general public exchanges in the pair of Bitcoin, Ethereum or other major currencies or in Fiat Currencies and this process called Fund Raising.
In ICO(Initial Coin Offering) the token sale is starting only on companies’ website or their preferred application or wallet before listing any exchange and there is a doubt for the public, which exchange coin will be list after the completion of the sale or it would be listing or not????
But in IDO (Initial Dex Offering) process the coin/token sale is starting on decentralized liquidity exchange, a decentralized liquidity exchange is type of exchange where you swap your tokens.
Liquidity pools are pairs of crypto assets and stable coins. For example, USDT/ETH is a liquidity pair. Traders can swap between crypto asset and stable coin based on market conditions. As volatility of stable coins are negligible, it offers a safe option for traders to manage the high volatility of crypto tokens and assets by swapping it with each other.
Let’s check what is the difference between ICO, IPO,STO AND IEO
Process in both IPO (Initial Pubic Offering) and ICO (Initial Coin Offering) are same because in both the issuer manage all the responsibility and the IEO (Initial Exchange Offering) is done by the centralized exchange. If we check the IDO (Initial Dex Offering) process then we saw that the IDO process is the combination of the ICO and IEO but the difference is that the IDO is use Decentralized Exchange (DEX) for his tokens and ICO and IEO are use Centralized Exchange (CEX) for his tokens.
Benefits of the IDO*Open and fair fundraising:
Usually, it is observed that in any token offering system, as soon as the token sale will goes starting, public or the investor will buy these tokens at the cheaper price and wait for listing coin to the exchange after listing they will sell their tokens and gain a huge profit but in this process they need to wait until the token will not be listed at any exchange, but when we will using IDO for the fundraising approach investor, public and companies don’t need centralized exchange for the token listing and trading for the fundraising purpose and anyone can be participating in event.
*Trading:In IDO approach you can start trading immediately when the token will list on decentralized exchange you can buy easily and sell them when the price goes higher. Like: SHIBA INU token the initial price of this is .00000026$ and it goes high in a few weeks to the .000038$ the profit is around more than 10000%
Liquidity:
Liquidity means the ability to buy or sell easily on the market. Here in the IDO, the project’s token gets access to immediate liquidity, which can benefit the token price.
How to buy or where to buy the tokens:
If you want to buy IDO tokens you just need to search the IDO platform like: Pancake,Binance Dex,UNISWAP, etc. And you have search all the necessary things about the token like: about the Developers Team, Path, Announcement, Future Projects and Platform etc. *Then go to the decentralized exchange and connect your wallet with exchange then swap your tokens. Ex: If you want to buy a token from UNISWAP exchange then first you have to connect your TRUST Wallet with the exchange and deposit the amount which is use to buy the token like – BNB, Ethereum. The wallet is also use to you hold your tokens for the future use. Important: Always check the token platform like it support Ethereum platform or Binance Chain platform.
The IDO tokens is issued by decentralized liquidity exchange like :
1. UNISWAP
2. MDEX(BSC)
3. SUSHISWAP
4. 1INCH EXCHANGE
5. BURGERSWAP
6. PANCAKE SWAP 7. BINANCE DEX
these are few names of the Decentralized Exchanges but that time in the market there are lots of exchanges for buying IDO tokens.
I hope this information about IDO will help you to understand IDO Good Luuck…..👍👍👍
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