What is IDO

What is IDO? A clear explanation of IDO. An example of working with IDO. Earnings with IDO.

What is IDO?

Initial DEX Offering, or IDO for short, is a new crowdfunding method that allows crypto projects to launch their own token or coin through decentralized exchanges (DEX). The successor to the infamous Initial Coin Offering (ICO), IDO is a reliable way to launch projects or raise funds for growth and development.

An IDO, or DEX initial offering, is a cryptocurrency (or token) offering that takes place on a decentralized exchange (DEX). However, unlike ICOs where tokens are sold prior to listing on an exchange, IDO tokens are immediately listed on the DEX through which they are launched. This means that project developers themselves are not required to collect assets for pools; instead, the pool is created on the DEX after an IDO is conducted via a proprietary or third-party launcher. The IDO model gained popularity because crypto projects could raise funds through liquidity pools without intermediaries and investors could benefit from instant token trading, essentially a win-win situation for everyone.

What is IDO (simplified explanation)

In general, to understand what IDO is, it is easiest to explain it using the example of an ordinary startup. In essence, this is a crypto startup in which anyone can invest their money (certain tokens). However, depending on the platform on which the IDO is held, moderation of projects, teams, etc. also takes place. This is done in order to make it impossible to create a completely meaningless project that will lose all value immediately after launch. Some platforms with IDO are not too worried about their reputation and because of this there may be many passing and not promising projects, but some others can bring very big earnings.

An example of working with a regular IDO site

The principle of operation with most sites with IDO is the same.

  1. The first step is to buy the coins of the corresponding platform, for example, in impossible finance it is the coin IDIA, vIDIA or IF;
  2. After that, you need to view the list of available projects for participation. Investigate it and decide whether it is worth paying attention to;
  3. If you decide to try to invest in it, first you need a certain period of time (it is different for each project, it can be a week, or it can be 2 months) to deposit (deposit these coins). As a result, depending on the TIME and NUMBER of coins you stake, an allocation (number of tokens) will be allocated, which you can redeem for a new project;
  4. When the staking time ends, the coins you staked can be taken back. And also buy the allocation allocated to you (mostly for BUSD, USDT, USDC stablecoins);
  5. Wait for the withdrawal period and sell or hold for further development of the project depending on your expectations.
Example of participation in IDO on Impossible Finance

Examples of platforms for earning money on IDO

Now there are many different platforms with IDO. Some are focused only on games, some on add-ons, and some have all possible options for new products. To view the most popular of them, you can go to the cryptorank.io website in the IDO section of the platforms. The most popular platforms, the blockchains on which they work, the current average income from their IDOs, the income at the time of the highest coin price, the number of IDOs conducted and other parameters related to growth and capitalization are indicated here.

IDO sites

The most favorable entry platform for beginners is the Impossible Finance platform, as the entry currently reaches only $0.196 (this is the price of the token, and at least one token is required for staking). At the same time, the projects on this site have one of the highest incomes at the moment, that is, the projects there are chosen quite carefully. Read more about it in the article.

Benefits of earning

The benefits of earning include:

  • if the project is promising, it can give up to 100x, that is, if you had an allocation of. For example, $40, then at the peak the price of your coins can reach $4,000, as was the case with the example of the SPRT coin on Impossible finance;
  • most coins give an instant profit of 2-3 times or more. But you need to think whether to fix it right away or wait for further growth;
  • a small number of sites boast fairly small entrance fees of a few dollars;
  • in the growing market there is a huge selection of projects. The opportunity to earn large sums of money in a short period of time;
  • some sites refund money in the case of unreleased projects, or projects that went into a big negative.

Disadvantages of earning

Disadvantages of earnings include:

  • not the stability of the income, because interesting and relevant projects do not always turn out;
  • it is not possible to completely follow the stages of project development, only the information that is publicly available;
  • in a falling market (that is, now) many projects give small profits, or immediately go into the red, because people want to keep their money;
  • some projects, despite moderation, may turn out to be completely fabricated and die immediately after fundraising;
  • many sites require a fairly large entrance fee, from $500-$1000.

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