If you know anything about cryptocurrencies and blockchain, then you know how hot of a topic it has been recently. It is a gold rush of sorts with people scrambling to make the next million in a short period of time. Every day there is a new Initial Dex Offering, in short IDO, trying to get funded. If you are wondering what exactly an IDO is, then read on.
The Initial Dex Offering (IDO), which is also referred to as the new generation of ICO, is a project launched by Achain Foundation to break through the limitations of traditional crypto fundraising methods including the ever-so-common ICO (Initial Coin Offering) and IEO (Initial Exchange Offering). Before getting started with IDO, let’s learn a little something about ICO and IEO.
What is an ICO?
An Initial Coin Offering (ICO) is a crowd-sale event that allows investors and users to receive utility tokens in exchange for their investment. To set up an ICO, a company simply needs to choose a platform such as Ethereum and create its smart contract to start receiving funds.
Given that investors have (mostly) been able to multiply their money after an ICO, it’s no wonder these offerings have become so popular in recent years. However, the ease at which anyone can set up a website and launch an ICO (there are plenty of guides online for beginners), has also made them incredibly risky, too.
What is an Ethereum?
Ethereum is a blockchain-based distributed computing platform supporting smart contract functions. While the “Ethereum Virtual Machine” is used to execute scripts following a predetermined programming language, the blockchain itself is “intelligent” in that it stores a copy of the entire script history in advance which can then be referenced in future transactions, thereby eliminating ambiguity and fraud.
If you are a professional and expert blockchain developer, you may have heard of a new programming language gaining some traction lately called “Solidity”, Ethereum works on it.
What is a Smart Contract?
Smart contract, a concept originally developed by computer scientist and cryptographer Nick Szabo in 1994, is a computer program based on blockchain technology. Smart contracts allow for straight-through processing of complex payments between numerous parties with minimal human oversight and often settlement within minutes.
The aim of smart contracts is to be able to reduce the role of contracting parties from that of traditional legal representatives (liquidators, bailiffs, auditors, notaries) to software agents that are able to interpret and enforce the terms of a contract.
In simpler words, a smart contract is self-executing, is not controlled by anyone, is unchangeable and is transparent, which allows all parties to verify and audit it.
What is an IEO?
An Initial Exchange Offering, aka IEO, is an event that is conducted by a trade. Unlike an initial coin offering that allows any investor to purchase tokens from any willing token issuers with no entry requirements, IEOs are performed within the ecosystem of a specific cryptocurrency conversion protocol and are commonly fixed to accredited investors.
The exchange conducts the verification and due diligence for each accepted project. The criteria for listing and the timing of the IEO is decided by each platform independently. Some of these platforms include Binance, BigOne, Huobi, KuCoin, BitMax, OKEx, Gate.io and HitBTC
In July 2018, Ethereum blockchain became the first public blockchain to implement a standard called ERC-20. This was seen as a playing card in the blockchain game. Now it is time for companies to take advantage of ERC20 tokens, as fundraisers are now being held on Ethereum platform. This new fundraising event is known as an Initial Exchange Offering (IEO).
What are IDOs?
If you are a cryptocurrency or blockchain enthusiast or investor, you would have probably heard of the terms ICO and IEO. And if you have been into this space long enough, you have seen a number of projects being born out of these two (mostly) similar fundraisings concepts. However, there is another model we see gaining traction: the initial DEX offering. We want to shed some light on what IDOs are and how they are shaping up to be the successor to ICOs and IEOs.
They (IDO) are a tradable token that investors can get hold of as soon as the launch is over – All they need to do is to use their existing Ethereum wallet addresses to process the IDO transactions. The growth of these tokens has gone up alongside Initial Coin Offerings (ICO) and Initial Exchange Offerings (IEO) in 2018.
How do IDOs Work?
With an IEO, it became the alternate vetting the venture and carrying out the token sale. With an IDO, a third-party platform vets the alternative while the token sale itself takes place in a highly decentralized manner. In theory, everybody can improve finances via an IDO with a third-celebration launchpad platform, as all they’d ought to do is open a pool.
The manner this works in all fairness is simple. A venture is going to a launchpad, and in the event that they meet their requirement, they’re selected to behave as an IDO. The method itself may range from one launchpad to another, however the idea is continually the same.
Let’s cut to the chase, are you looking for an enterprise blockchain development company for your upcoming project but don’t know where to start? Maybe you have been hearing about ICOs and IEOs, and even saw a couple of them go south. If so, we can help. When it comes to the modern cryptocurrency projects, a newer style of fundraising called the Initial DEX offering is becoming more popular. We at Vardhaman Infotech, will be more than happy to assist you get your own IDO created! We are just a text away!