Crypto Academy / Season 3 / Week 5 – Homework Post for [professor @wahyunahrul] Initial Dex Offering (IDO)
Am gladdened once again for yet another opportunity of this wonderful edition by the cryptoacademy. From the lecture offered by Professor @wahyunahrul, reading through this lecture series have given me a better insight on Initial Dex Offering and its significance on cryptocurrency world. To this, I will be writing based on the task given by the Professor.
Explain in your personal opinion whether IDO should be done on cryptocurrency
Initial Dex Offering in its acronym IDO is a platform where crowdfunding of tokens can be carried out via the decentralized exchange (DEX). With the use of Decentralized exchange, it makes it easy for the exchange of the launched token via other cryptocurrencies or stable coins. This platform of the IDO is one which makes a new token to be known by the public as well as the investors and traders of cryptocurrency thus enhancing the growth of the cryptocurrency world.
In my opinion, IDO is a better option on cryptocurrency. Why I said so is because the cryptocurrency world cannot grow larger if new tokens are not created and known to the public. With the help of the IDO platform, the new tokens created are easily launched to the public, this is where the investors will invest, buy and exchange the token, thus raising funds for the project to stand a better ground in the crypto market. By so doing, the value of cryptocurrency will be more appreciated and embraced.
Can IDO have a significant impact on the cryptocurrency world
IDO based on its different features as compared to the IEO and ICO is better of significant and has a greater impact on the cryptocurrency world since its operates on the decentralized platform. With its operability on the decentralized platform, it plays a significant role on the cryptocurrency world by creating an avenue for the introduction of new tokens to the public (i.e, it helps in distributing or circulating a newly created token to the public). The publicity of the token to the public will help in the growth of the cryptocurrency world.
Explain one example of a token that has been IDO but failed/rug pull
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One example of a token that has been IDO but failed or experienced a rug pull is the Turtledex with about $2.5M confirmed stolen. The Binance smart chain (BSC) was behind the Turtledex protocol. The Turtledex was a decentralized storage platform which carried out a crowdfunding by opening their liquidity pools on the pancakeswap and Apeswap which are DEXs on the Binance Smart chain. The Turtledex native token which is known as TTDX was opened to circulation via the two DEXs on the 18th of March at the 15:00 UTC.
There was a large influx as to the crowdfunding raising funds worth $2.5 million (i.e 9,000 Binance token), but after 24 hours of the circulation, Defistalker reportedly warned the native token holders after noticing that the liquidity of the token has been removed from the two DEXs platform of a possible scam.
To confirm the theft, since the liquidity has been removed, the TTDX native token tremendously leaped to a zero thus leading to a rug pull in the token.
Make a detailed fundamental analysis of 2 tokens that have done IDO, and compare the two tokens. Then give your opinion on the results of your analysis
In this task, I will be giving fundamental analysis on the Raven protocol and the UMA protocol.
I will start with the Raven protocol,
Raven protocol was cofounded by Kailash Ahirwar, Rahul Vishwakarma, Shannon and Sherman Lee in 2017. The protocol is a protocol that operates on the decentralized platform. It was created with the aim of using idle computer power in providing training of deep neural networks.
Raven protocol was the first token to use the Initial Dex Offering to launch it token via the Binance DEX in 2019. The Raven protocol circulated its 300,000,000 RAVEN token which was allocated for the IDO. This circulation started from 17th June 2019 by 9:00 UTC and ended the next day by the same time (i.e, a 24 hours range of time for the circulation). The circulation price of the RAVEN token was 0.00005 BNB per each and thus the circulation was done in a first come first serve format as declared by the protocol.
Talking about the UMA protocol,
UMA protocol is another type of protocol also known as Universal Market Access protocol that was cofounded by Allison Lu and Hart Lamburt in 2018. The protocol also operates on the decentralized platform. It aim of creation was for easy creation of decentralized financial products that is fit in any use case by anyone, thus allowing users to create synthetic assets, and also buy and sell these assets on the Ethereum blockchain using the on-chain price feed.
UMA protocol used the Initial Dex Offering to launch its token on the Uniswap in 2020. The UMA protocol circulated 2,000,000 of its token at a listing price of $0.26 each.
Comparing the two tokens, their aim of creation are of different path as well as the time they were created and launched.
The two tokens is still in existence as they did not fail in their IDO session thus overcame rug pull. They are still making wave of growth in the cryptocurrency market although the RAVEN token is much utilized than the UMA token
My opinion on the result of this analysis is that Raven protocol as the first token using IDO platform has its existence a long standing one thus still growing in the system making waves in the market to attain heights, same as the UMA protocol is also thriving in the market to grow to a height as well. Both tokens are at its peak of reaching their aim of creation.
Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO
For this task, I will be using the Polkaplay token,
Polkaplay token started on the 29th of July and will be ending on the 4th of August, 2021. The token is launched in four different platform for easy access by the users or traders. The following platforms are: Poolz, Moonstarter, BSC station and Red kite. The project is aimed at raising fund worth of about $297,000 and the circulation of the token is at the rate of $0.005 per token.
The following are the steps taken to participate in the Polkaplay IDO:
Using a browser, visit the url – https://app.polkaplay.io/ and sign up
Then visit another url – https://app.poolz.finance/ that is if you are using the Poolz platform.
From here, you connect your wallet (BSC chain)
After this, you search for the “Polkaplay” tab and then click on the “Details”
After this, you click on the “Join Whitelist” button to verify on MetaMask
From this point, your wallet will be part of the system. This are the steps to follow to participate on the Polkaplay IDO.
Conclusion
Initial Dex Offering is a new platform that is designed with the aim of raising funds or crowdfunding or launching of a token via a decentralized platform (DEXs). With the introduction of IDO, traders get a handful touch of newer tokens as well as the populace. It is a welcoming event which will give new tokens created a baseline to growing in the crypto market thus promoting the growth of cryptocurrency world at large.
Thanks Prof @wahyunahrul for this great lecture, have actually learnt things from this study.