Since the advent of the first blockchain applications in the late-2010s in the form of cryptocurrencies, there has been a massive evolution in the way we see the world. The reason for such difference is that blockchain technology grew to form newer applications such as initial crypto offerings, non-fungible tokens, decentralized finance, decentralized autonomous organizations, and now, soul-bound tokens. Initial crypto offerings, in particular, have stamped their mark as they helped in elevating new Web3 enterprises through crowdfunding processes. Although there are various initial crypto offerings, such as ICOs, IEOs, and STOs, we will talk about IDOs, which are popular in the current crypto ecosystem.
What is an IDO?
An Initial Dex Offering (IDO) is a crypto fundraising model that uses decentralized crypto exchanges (DEXs) for operation. In this model, IDO tokens or the project’s cryptocurrency can be bought by retail investors, making anyone able to become a crypto investor without difficulties. IDOs are relatively new in the crypto fundraising ground, which has benefited from the setbacks of earlier models such as ICOs and IEOs. Nowadays, IDO platforms such as launchpads have increasingly become community-driven through the adoption of DAOs, which has given an added advantage for project owners and investors. The first IDO tokens were deliver for a project called Raven Protocol in June 2019.
What are the Benefits of IDO tokens?
IDO token development is necessary in the current crypto investment world as it helps in raising funds for new crypto projects without trouble. Firstly, IDO tokens will be listed on decentralized crypto exchanges, meaning that liquidity concerns are gone as people can trade your tokens on the many available liquidity pools in DEXs. Also, listing costs here are very low compared to earlier models, making it easier for project owners to raise funds through IDOs. In addition to this, IDO tokens can be traded instantaneously as soon as the project tokens launch for sale, as there is no cool-off period imposed for trading IDO tokens.
How to Develop IDO Tokens?
- Like any other crypto project, you should first plan on your main business project. After carrying out an extensive analysis for your new crypto business, think about how your tokens would benefit its holders. It is important to provide some utilities as most crypto investors are attentive in utility-based tokens when projects cannot offer equity tokens.
- Then, you should approach an IDO platform or a launchpad that provides IDO launching services. Popular IDO platforms include Binance DEX, Polkastarter, Maker DAO, Uniswap, and Solanium. While IDO platforms are decentralized crypto exchanges, IDO launchpads are exclusive platforms that are one-stop solutions for investors to know everything about your project before investing. Both types of IDO platforms offer their services at low costs, but the main difference lies in how they function, which plays an important role in deciding your preferred platform.
- After deciding on the platform of your choice, it is time to list your IDO tokens on the platform. You will also be required to provide additional information about your future business venture, such as the whitepaper, roadmap, vision, missions, etc. Such information is needed so that your project can be screen by an automatic or community-driven vetting system.
- Now, you must promote your IDO tokens using various marketing strategies to form an initial community around your crypto project. Using multiple marketing strategies is approve to ensure optimal success. Gathering a community also helps you in adding initial value to your IDO tokens.
- After getting accept for listing, IDO token development for your project will take place. These tokens will be list on the DEX, where investors can buy them, and the funds will be directly moving to you, making it a peer-to-peer (P2P) trade.
Final Thoughts on Developing IDO Tokens
Therefore, Creating IDO tokens is a wise option for business owners who want to raise funds for their well-intended projects. This is because the IDO model essentially works against scammers and rug pull projects. So far, IDOs have been benefitting project owners and retail investors mutually. A lot of projects have been the result of IDO token fundraising campaigns. You can use IDO token development to raise funds easily while gathering an early-adopter community around your new business that can help a lot in the long run.
If you want to develop IDO tokens with utilities and governance rights for your business, it will be correct to talk with an experienced firm in IDO token development. Such a firm will help you in developing quality IDO tokens as per your preferences and your project requirements. Most of those companies are client-centric, which means all the decisions – big or small, will be yours when it comes to creating IDO tokens for your new business.