Financial crunch can indeed impact the implementation of different projects. However, fundraising campaigns are quite easy in the digital era. Wonder how? It is Initial Decentralized Exchange Offerings (IDOs). Entrepreneurs can launch a token on a blockchain-powered launchpad and encourage investors to buy them within a certain period. Later, they will receive a steady inflow of money from all parts of the world. Dreaming to build a robust venture in the world of Web 3.0? Initiate IDO Development now.
The advantages provided by an Initial DEX Offering Service are
Instant listing of tokens – Of course, virtual assets will receive high demand from investors when it is listed on a popular exchange. You would witness a humongous trading volume since acclaimed marketplaces have sufficient liquidity. Moreover, a crypto token development company will create digital assets as per the requirements of the project.
Liquidity pools flushed with funds will help traders to swap tokens. Accordingly, they can exchange crypto coins, Defi tokens, and stablecoins by choosing various trading pairs.
Cross-chain swapping – Project creators can raise an ample amount of funds in a permissionless manner. They can attract investors across different blockchain networks. This provides several advantages like sufficient liquidity, greater throughput, and quick processing of transactions. Moreover, this results in interoperability and higher capital infusion from funders across the globe.
Integration with different wallets – Of course, there are various software and hardware wallets in the crypto industry. The popular ones include Coinbase Wallet, MetaMask, MyEtherWallet (MEW), Trust Wallet, Ledger Nano X, Ledger Nano S, and Trezor.
This will help investors on different blockchains to participate in the IDO. Accordingly, they need to possess some native tokens depending on the blockchain network where the fundraising campaign is happening. Therefore, this will help retail and institutional investors to pay gas fees and transaction processing charges.
What is the process involved in participating in an IDO?
- Launchpads help in the success of many aspiring blockchain and digital asset projects. Project creators need to submit their ideas and will receive long-term financial support from angel investors, high net-worth individuals (HNIs), and venture capitalists.
- Moreover, investors need to read the whitepaper of the project, check its business objectives, the names of the founders, advisors, and partners. Later, they can be part of promising projects at the early stage.
- Later, users must link their software or hardware wallets depending on the blockchain network where the project is listed. They need to create an account, manage their funds with private keys, secret passwords, and recovery phrases.
- Besides that, investors will have real-time control over their portfolios. This is because hot and cold wallets support different devices like desktops, laptops, tablets, and smartphones.
- Interested investors should head over to their personalized dashboard. They can see a list of projects that they have applied for whitelisting. Moreover, fund contributors can tap the confirm button for participating in the sale. Thus, they will receive a notification when the countdown reaches zero.
- Further, investors must check the official website and social media pages of the project. They would get data about the fundraising amount, details about the tokenomics, and price per token.
- Contributors ought to undergo Know Your Customer (KYC) verification. Besides that, they would be subject to a captcha test for security reasons.
- After a while, the project officially opens on a popular trading platform. They will have to go through comprehensive agreements and accept the terms and conditions (T&C). Users have to tap the join option before investing a specific amount.
- In-depth information is available about the minimum and maximum amount to be invested and the number of tokens available.
- Likewise, investors must incur gas fees. This varies depending on the type of blockchain network and the sidechain where the project is listed. Further, participants in an Initial Decentralized Exchange offering (IDO) can also adjust the Gigawei settings. This decreases their transaction fees significantly. Every cryptocurrency divides into separate units.
- Consequently, investors must execute the payment after tapping the Confirm button. As a result, they will receive a certain number of tokens after processing a transaction. Besides that, users will receive an update that they have officially joined the IDO.
- Later, fundraisers should check the Allocations page. This indicates that they have successfully participated in the token sale. Investors can check information like the number of tokens (claimed and owned), contributed amount, buying date, and vesting period.
- Besides that, participants can check if there are other DeFi services like staking and yield farming. This helps them to earn returns per year depending on the progress made by the project and the milestones achieved.
- After a certain period, the token sale event officially ends. Investors will receive tokens in a specific proportion. Fund contributors can claim their tokens. Their portfolio will witness steady growth if the project achieves its business objectives. Moreover, their returns will also depend on the regulations imposed by authorities and the market conditions.
Connecting liquidity and Initial Decentralized Exchange Offerings (IDOs)
Decentralized Finance (Defi), Cryptocurrency and blockchain technology are getting connected now. Investors can earn high returns depending on the amount they contribute to a certain project. They will provide liquidity to a managed pool of funds. Besides that, liquidity providers (LPs) will hold a certain number of tokens.
Likewise, their chances of applying for a whitelisting of a promising project will increase. They will receive decision-making powers and voting rights if their wallets contain Liquidity Provider (LP) tokens as well as native tokens.
Are you that entrepreneur aiming to simplify the process of fundraising? Start IDO exchange development now by collaborating with a DeFi platform creation enterprise soon.