In today’s prevalent ICO model, centralization creates a lot of problems. Third-parties can easily manipulate or block innovations and progress. Being centralized, the current model is vulnerable to not only hackers but also human error, lending it vulnerable to corruption or destruction. All of these negatives go on to impact the perception of cryptocurrency as a whole. Further, the traceable nature of ICO prevents society from crowdsourcing and purchasing within our inherent right to barter in private.
To combat the said challenges, Initial DEX Offering was introduced. IDO is a fundraising method that enables protocols for traders. It is slightly similar to Initial Coin Offering (ICO), however, the key difference being that IDO does not rely on any accountability to a central authority. Unlike contemporaries like IEOs and ICOs, IDO is decentralized, and offers ways for De-Fi protocols to innovate out of the box, and develop scalable and robust open finance applications and platforms. Because of the central difference between IDO and methods, IDO is all set to spearhead a progressive revolution in the crypto and blockchain arena!
To summarise:
An IDO is a fundraising method in which the token is issued via a decentralized liquidity exchange.
A decentralized liquidity exchange is a type of crypto asset exchange that relies on liquidity pools with which traders can swap tokens.
Liquidity pools are pairs of crypto assets and stablecoins. For instance, ETH/USDT is a liquidity pair.
Traders can swap between crypto assets and stablecoin based on market conditions. Since stablecoins come with negligible volatility, this is a safer option for traders to manage the high volatility of crypto tokens by swapping them.
As a result of this, decentralized liquidity exchanges enable you to launch tokens and access immediate liquidity.
Partner with Minddeft for your IDO needs, and avail the following benefits of the Initial DEX Offering model.
Usually, in the token offerings method, as soon as a token sale goes public, private investors hoard large numbers of tokens for lesser prices Then, they will resell these tokens to the general audience, and gain huge profit in this process. With the IDO model, companies, especially young startups, don’t need a centralized exchange or permission for their fundraising event.Plus, anyone can participate in and organize an IDO, and it’s not just limited to private investors.
With the IDO model, the token can be traded immediately. This way, investors can purchase their tokens when it is launched, and resell them at a higher price during the IDO. To understand this better, here’s an example - during the UMA protocol fundraising, the initial token price of $0.26 immediately jumped to just around $2, giving quick benefits to investors.
In case of IDO, as opposed to other methods like ICOs and such, the liquidity achieved is way more superior. Liquidity can be understood as how quickly one can get their hands on cash The IDO model is inherently developed keeping liquidity in mind, so that the project’s token gets access to immediate liquidity, so that the token price can be benefitted.
Minddeft presents to you the next step in open finance - IDO, that solves most of the existing issues in the cryptocurrency market.
Partner with Minddeft, and work on a completely decentralized IDO, and release blockchain products far beyond the reach of a malicious third party influencer.
Minddeft’s expertise and experience of working with the latest blockchain technologies helps you to mitigate and eliminate many of the issues including hackers and human error.
With the Minddeft advantage, you get IDOs that are developed to empower and enrich.
Partner with Minddeft for your IDO needs, and avail the following benefits of the Initial DEX Offering model.
