NEW YORK, NEW YORK, USA, June 6, 2022 /EINPresswire.com/-What if people are actively investing in cryptocurrencies or people are more than average interested in cryptocurrencies, knowing that cryptocurrencies are the topic they are introduced to as new concepts.
One of the most common terms for all traders familiar with cryptocurrencies is the term crypto ido. But what is an IDO? Let’s talk about this in a little more detail in this article.
What is an IDO?
IDO is an acronym for Early DEX offerings. This concept is still relatively new, so a separate Russian expression has not yet been developed. However, it is often referred to simply as a “DEX offer”.
Traders have probably also heard of previous IDOs. These are ICO (Initial Coin Offering) and IEO (Initial Exchange Offering). Many people consider IDO as a new method of funding related to the crypto industry because it has found solutions to some of the problems faced by ICOs and IEOs related to funding.
Thus, it can be said that IDO opens the door for some new projects and for new people who want to become crypto investors. This is a concept that is already available around the world.
Ethereum started it all
The path to IDO is now long, and the Ethereum cryptocurrency started it all in 2017. Thus, in 2017, the development of ICO, one of the predecessors of IDO, began.
In the case of Ethereum, young traders have probably heard of ERC20 tokens. Prior to the advent of tokens, project funding was quite difficult, but this development also made project funding easier and more convenient, as these types of merchants did not have to go through the same process with each transaction.
ICOs are considered a form of crowdfunding, and this makes it easier to find investors related to cryptocurrencies compared to traditional financial markets. In traditional financial markets, opportunities for crowdfunding are very limited.
The ICO is not very large
But the ICO has never been so great. As it becomes easier for investors to invest, there is a small explosion of jobs.
Many of these projects are, not surprisingly, funded by small investors. Not that this has to be negative in itself, but so many investment projects have also been pretty wasteful.
Generally the project is slow but definitely stops or disappears as quickly as it seems. In practice, this has resulted in ICOs gaining a relatively bad reputation in the crypto market. Despite this, the ICO is still the beginning of decentralized crypto finance.
IEO is supposed to address the ICO issue
The fact that the ICO has caused many problems should not be underestimated. And that is, of course, an issue that needs to be addressed, and the solution is the Initial Exchange Offering (IEO), which is one of the two predecessors of the IDO.
There is no doubt that the IEO did what it had to do. The purpose of developing an IEO is to address the issues that ICOs create for investors. They want a better and more secure structure in terms of investment, and this gives IEO.
However, IEO failed to fix all the issues in the system. IEO is centralized like any other crypto exchange, so it doesn’t exclude intermediaries in the process.
However, mediators play a very important role. It’s the same who decides which project to invest in, and it’s also a service that investors have to pay for. This is the opposite of the idea of decentralization.
ICO becomes IEO, then IEO becomes IDO
However, now the IEO has developed more and more into an IDO, and the IDO is certainly much the same as the IEO.
In connection with the IDO and IEO, new tokens are introduced through the exchange. In addition, both are automatically listed on the crypto exchange. But there are some differences between them:
– When issuing a token and thus implementing an IDO, investors do not need to pay a commission to the crypto exchange in the same way as if the token was issued in connection with the IEO.
– Many crypto exchanges often use IEO to promote their projects. However, this does not apply to IDOs. It’s not the central part of marketing. However, the issuer must use the IDO launch pad.
-As mentioned above, IEO and IDO are automatically listed on crypto exchanges, but if centralized crypto exchanges are popular, then they may be paid for those lists. Because of IDO, the process tends to be faster.
However, for the first time IDO appeared to have nothing to do with cryptocurrency. This is related to the AI learning system that first emerged IDO. To be precise, it has to do with Raven and Protocol and it was launched.
What is IDO Launchpad?
As already mentioned, intermediaries cannot do the same thing with an IDO as with an IEO. IDO requires the use of an IDO launch pad, and this launch pad plays an important role in this process.
– The purpose of launching an IDO is to do what is usually the responsibility of intermediaries – that is, to compare projects with multiple investors and find out who works best. Thus, the wing of the centralized crypto exchange is reduced to a minimum.
– The IDO launch pad also plays a very important role regarding bad projects. Launchpad has features built in to easily filter out good and bad jobs, thus protecting investors from fraud.