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September 19, 2022As the crypto world is seeing a surge in project traction, it is critical to remember that each new crypto venture would require adequate funding. There are numerous methods for raising funds for a business, each comes with its own set of advantages and disadvantages.
The story begins with the development of the first crypto-based applications that put cryptocurrencies to use. Then there were special investment ventures, which made it possible for startups to attract investors.
How can these shortcomings be addressed? Development of ICO and IEO resolves such issues. The new solution isn’t foolproof, though. Initial DEX offering is the latest response (IDO). It included extra features that got the crypto community’s attention. Launchpad began to replace many existing apps as these investment ventures evolved.
The IDO Launchpad solution aided projects in providing a simple user experience. This blog will go into detail about IDO launchpads and how they will benefit future crypto projects.
What Is An Initial Dex Offering Launchpad?
In essence, an IDO launchpad serves as a pool of investors from which investments can be made by listing cryptocurrency projects from startups and brands. Investors can research and buy tokens from the cryptocurrency business project that most appeals to them. The foundation of the IDO launchpad solution is the initial DEX offering (IDO) model.
Now the next question arises, what is an IDO model? Let’s understand it briefly:
The IDO model is a capital-raising strategy in which a decentralized platform is used to launch the tokens of a cryptocurrency venture project. By addressing the problems with earlier crypto investing models like ICO and IEO, the model has grown in popularity. The model is compatible with both older stablecoins and cryptocurrencies.
There may be projects relating to cryptocurrencies that are not listed on any launchpad. They might have sufficient resources to work independently. In these projects, it’s rare to find tales of rags-to-riches. It is a wise choice to launch your business with an IDO launchpad solution as a new startup founder.
IDO launchpads are hosted on various blockchains, so it should be noted that their functionalities and protocols may vary. Potential investors can consider the tokens’ uses and the whitepaper before spending money.
Start Your Crypto Business with our IDO Launchpad Solution
Schedule Free DemoWhat Makes Initial DEX Offering (IDO) Different From Earlier Fundraising Methods?
In an ICO, the issuers handle everything. In contrast, a centralized exchange host handles IEO. IDO is a combination of ICO and IEO. Initial DEX Offering replaces CEX with a decentralized exchange (DEX).
IEO and IDO are somehow similar; we can call IDO the new IEO. In both approaches, organizations can sell tokens to investors or traders. Self-organized and decentralized IDO doesn’t charge exchange fees like IEO. IDO solves some issues with IEO, such as issuers not being able to list tokens on competing exchanges. Issuers must also pay a large sum to list the token on an exchange. Moreover, Issuers can’t control fundraising.
What Benefits You Can Leverage From the IDO Model?
- Transparent fundraising
In token offerings, private investors buy a large number of tokens for a lesser price once the sale goes public. They’ll resell the tokens for a profit. Startups don’t need a centralized exchange and permission to start an IDO fundraising event. Also, anyone can organize and participate in it, not just private investors. - Swift Trading
IDO tokens can be traded immediately. Investors can buy tokens quickly at launch and resell them during the IDO. This ultimately helps to raise the token price. - Liquidity
Market liquidity means easy buying and selling. How fast can you get cash? IDO gives the project’s token instant liquidity, which can boost its price.
How do you start an IDO?
An IDO can be organized completely independently by the token issuer. It can be done offline using the project’s own IT system or online on the blockchain using transactions from the issuer.
However, if you are not a technically potent person, you can shake hands with a reputable blockchain company in developing an IDO launchpad platform.IDO’s future
Future of IDO
IDO addresses some of the issues with ICO, STO, and IEO. With its decentralized exchange model, it works to raise funds without permission.
Whales and scammers can exploit loopholes, affecting token issuers with immediate price movement.
IDO is the next crypto fundraising step. Integrating control mechanisms into the IDO model is an important step that eliminates the possibility of token price fluctuations until the fundraising is over. Issuers can control who buys how many tokens by using KYC.
To Sum Up
Creating an IDO platform helps crypto enthusiasts and business developers climb the crypto market’s ladder. Such levels of engagement only serve to highlight the fact that more crypto projects from startups are on the way, and they are eager to list them on an IDO launchpad.
Choosing market pioneers to build your launchpad is an efficient and effective solution that saves you time and effort in a hassle-free manner.
Antier helps you in every step of development, deployment, and marketing. Call us to discuss your business idea!