Since decentralized markets became popular, IDO is no longer a strange term for investors. Currently, many projects are open to selling tokens under IDO, bringing relatively attractive profits to participants. So what is the truth? How to join? Please also find out through the following article.
What is IDO?
This is a form of token issuance on a Decentralized Exchange (DEX). Liquidity pools play an essential role in this form of token distribution, as they help create liquidity for tokens after the sale.
A typical IDO allows users to lock coins in exchange for new tokens during a token creation event. A portion of the raised capital, along with tokens is then added to the LP before being returned to the project later.
Those who have the opportunity to participate in the IDO of large projects will be the opportunity to bring profits many times over.
How it works
IDO is a form of using a decentralized exchange (DEX) to offer tokens. A crypto project offers its tokens on a DEX, users commit an amount to buy tokens through the platform, and the DEX helps with the final token distribution and transfer. These processes are automated and take place through smart contracts on the blockchain.
IDO rules and stages depend on DEX execution, but there are a few standard methods:
- After the moderation process, a project is accepted for IDO on the DEX. The project offers tokens at a fixed price, and users lock their coins in exchange for these tokens. Investors will receive tokens in the subsequent token generation event (TGE).
- Usually, there is a whitelist of investors. You may have to complete marketing tasks to get on the list or provide your wallet address.
- A part of the funds raised will be used to create a liquidity pool for the project’s tokens. The rest of the capital will be given to the development team. Investors can then trade tokens after the TGE (token generation event). Usually, the liquidity provided will be locked for a certain period.
- At the TGE event, the tokens are transferred to the users, and the liquidity pool is opened for trading.
How to join?
To join IDO, you need a crypto wallet that can connect to a DApp like MetaMask or Binance Chain Wallet. You will also need some cryptocurrency to buy tokens and pay transaction fees. The cryptocurrency you will need to purchase new tokens depends on the sale and could even be LP tokens if you are participating in an IFO.
Once the wallet is ready, you need to connect to the IDO DApp using the connect button, usually found in the top right corner. Here is an example of this connect button:
You will now be provided with specific instructions on how to lock up your funds in preparation for the token generation event. Make sure you have enough funds to pay your transaction fees.
In most cases, when the subscription period ends, the tokens will be transferred to your wallet. However, some sales may lock or stake your new tokens for a certain period. Make sure to read each piece of information carefully before joining IDO.
Where can IDO be found?
The first place to look for opportunities is from the project itself. Joining the project’s communities and following their social media channels is an excellent start. You can also check the DEX for a list of upcoming IDOs such as PancakeSwap or DODO. If you want an overview of all the forthcoming IDOs, CoinMarketCap has a list of token releases available to keep an eye on. Not all of these will be IDOs, but CoinMarketCap specifies the sale.
Summary
With its ease of use, affordability, and accessibility, IDO has become a standard fundraising model for many new projects in the cryptocurrency market. However, an essential part of success in joining an IDO is choosing the right project. To do this, you must do your research – the traditional method is always needed in the cryptocurrency market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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IDO – Opportunity To Bring Desired Profit
Since decentralized markets became popular, IDO is no longer a strange term for investors. Currently, many projects are open to selling tokens under IDO, bringing relatively attractive profits to participants. So what is the truth? How to join? Please also find out through the following article.
What is IDO?
This is a form of token issuance on a Decentralized Exchange (DEX). Liquidity pools play an essential role in this form of token distribution, as they help create liquidity for tokens after the sale.
A typical IDO allows users to lock coins in exchange for new tokens during a token creation event. A portion of the raised capital, along with tokens is then added to the LP before being returned to the project later.
Those who have the opportunity to participate in the IDO of large projects will be the opportunity to bring profits many times over.
How it works
IDO is a form of using a decentralized exchange (DEX) to offer tokens. A crypto project offers its tokens on a DEX, users commit an amount to buy tokens through the platform, and the DEX helps with the final token distribution and transfer. These processes are automated and take place through smart contracts on the blockchain.
IDO rules and stages depend on DEX execution, but there are a few standard methods:
- After the moderation process, a project is accepted for IDO on the DEX. The project offers tokens at a fixed price, and users lock their coins in exchange for these tokens. Investors will receive tokens in the subsequent token generation event (TGE).
- Usually, there is a whitelist of investors. You may have to complete marketing tasks to get on the list or provide your wallet address.
- A part of the funds raised will be used to create a liquidity pool for the project’s tokens. The rest of the capital will be given to the development team. Investors can then trade tokens after the TGE (token generation event). Usually, the liquidity provided will be locked for a certain period.
- At the TGE event, the tokens are transferred to the users, and the liquidity pool is opened for trading.
How to join?
To join IDO, you need a crypto wallet that can connect to a DApp like MetaMask or Binance Chain Wallet. You will also need some cryptocurrency to buy tokens and pay transaction fees. The cryptocurrency you will need to purchase new tokens depends on the sale and could even be LP tokens if you are participating in an IFO.
Once the wallet is ready, you need to connect to the IDO DApp using the connect button, usually found in the top right corner. Here is an example of this connect button:
You will now be provided with specific instructions on how to lock up your funds in preparation for the token generation event. Make sure you have enough funds to pay your transaction fees.
In most cases, when the subscription period ends, the tokens will be transferred to your wallet. However, some sales may lock or stake your new tokens for a certain period. Make sure to read each piece of information carefully before joining IDO.
Where can IDO be found?
The first place to look for opportunities is from the project itself. Joining the project’s communities and following their social media channels is an excellent start. You can also check the DEX for a list of upcoming IDOs such as PancakeSwap or DODO. If you want an overview of all the forthcoming IDOs, CoinMarketCap has a list of token releases available to keep an eye on. Not all of these will be IDOs, but CoinMarketCap specifies the sale.
Summary
With its ease of use, affordability, and accessibility, IDO has become a standard fundraising model for many new projects in the cryptocurrency market. However, an essential part of success in joining an IDO is choosing the right project. To do this, you must do your research – the traditional method is always needed in the cryptocurrency market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Foxy
Coincu News
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