What is a crypto IDO (Initial DEX Offerings)? It has become the most popular crowdfunding model for DeFi projects. It helps startups integrate their native tokens into decentralized exchanges and raise the capital transparently.
We recommend you to play to earn whitelist IDO at P2PB2B. With professional assistance, you can manage the basic work to secure a suitable host platform and invite your community to participate.
Create Your Token and Crypto IDO
To develop a token, you need to choose an asset that will represent your project on the selected blockchain. For example, Ethereum is currently the most popular network for DeFi projects. It offers a bunch of resources to create a token. Other blockchains like EOS and Binance Smart Chain can also provide you with smart resources.
Before you get down to the creative process, you should organize your project’s token structure that will reach a high level of profitability and market stability. Decide on the total funds you would like to raise, retain, distribute, and add to your own initial liquidity pools. Make sure to keep some “miscellaneous funds” for good and bad scenarios in the future.
Identify Your Audience
Now you should decide to who you’re selling your token. Will you focus on professional traders or crypto amateurs? Targeting for an IDO is required to spark interest and/or build hype around your project’s token.
You are free to focus Bitcoin holders. Then, it doesn’t make sense to build an IDO on Ethereum without integrating Bitcoin tokens like pBTC, or RENBTC.
The DeFi experience of your audience isn’t an empty word either. If you’re after DeFi power farmers, you need to focus on an IDO using a high-volume platform. If it’s institutions that hedge funds you’re after, you should consider using a better-structured platform with more effective instruments.
Choose Your Blockchain
Apart from top blockchains like Binance Smart Chain and Ethereum, some smaller blockchains have also started supporting IDOs. You need to explore the benefits of each before deciding on the best option for your token sale. It shouldn’t necessarily be the chain you launch your token on.
Let’s say you can launch the IDO on Binance, and then issue the token on Polkadot. The only nuance is connected with high transactional costs due to network congestion on Ethereum. By the way, you will be able to do the token swap later on.
Vet Your IDO Host
You need to analyze the various crypto IDO platforms, also known as token launchpads. Ideally, you choose one of the recent ventures that involve a well-known cryptocurrency exchange. Moreover, it is important to vet the launchpads that meet your expectations.
What is the token’s performance on the market? What’s the user’s interest in the launchpad itself? Are its contracts audited by independent agencies? Does it have a big capital behind it?
Here are some significant factors for achieving your IDO’s edge:
- Visibility – It’s important to select the launchpad with the largest trading volumes. But it can’t guarantee a high level of transparency. It’s better to search for higher visibility by getting a more targeted platform.
- Transparency – It’s important to host your IDO on a transparent platform that allows users to verify the project’s credibility and reputation. Platforms should involve full token information to let users verify data, including the token contract address.
- Convenience and flexibility – DEXs turn out to be more complex than centralized alternatives, so it’s crucial to find an intuitive platform. It is supposed to deliver a decentralized exchange, as well as centralized service integrations, which will allow even non-crypto people to join your IDO.
Security and Documentation
To finalize the development process, you need to check your coding, smart contracts, and documentation. You should be ready for inspections conducted by DeFi and crypto investors.
To make everything right, you may need some professional assistance from independent third parties. For example, you can consider referring to well-trusted auditors like Certik and public explorers like Etherscan. This way, you will keep the technical documentation of your project and IDO accurate. You automatically put your project into the legal field and create a well-secure environment for investors.
Conclusion
IDO is a relatively fresh crowdfunding model. It may take time for the IDO ecosystem to polish its operations and establish e a balance between decentralization and security. In the future, the IDO may become an absolute leader in blockchain-based fundraising.
By creating a plan for crypto IDO, you make yourself closer to success. Take advantage of IDO by contacting a blockchain development company now!
