Crypto Academy / Season 3 / Week 5 – Homework Post for [professor @wahyunahrul] Initial Dex Offering (IDO)
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Hello steemians, am glad once again to participating in this week’s lecture and homework task. I read through the lecture and have learnt a lot through it. Thanks Prof @wahyunahrul for this great lecture on Initial Dex Offering (IDO). To this, I will be answering based on the professor’s task.
Explain in your personal opinion whether IDO should be done on cryptocurrency
Initial Dex Offering (IDO) which is a primary platform for the offering of tokens using the decentralized exchange mechanism to the public. It is a permissionless platform where funds can be raised in the crypto world. It helps in launching a token to the public using the decentralized liquidity exchange (DEX) mechanism. On launching the token using the DEX platform, it helps traders or investors with other type of coins or tokens to be able to swap their coins to get the launched coins.
So in my opinion, Initial Dex Offering should be done on cryptocurrency, I would say “yes” because without the IDO carried out on the cryptocurrency, there are some cryptocurrency that will not be known to the public and as such cannot be traded and thus this will make the value of the cryptocurrency worth nothing.
Being able to carry out or lunch new tokens on IDO platform will help create awareness to the public about the new token and as such traders will be help in funding the new token by exchanging or swapping it with another stable coins and as such leads to the growth of cryptocurrency world.
Can IDO have a significant impact on the cryptocurrency world
According to the task, I will say YES IDO has significant impacts on the cryptocurrency world, because it helps in creating awareness of a particular new token, apart from this, the IDO also operates on a decentralized exchange platform which gives room to the circulation of newly created tokens at cheaper listing prices. With this, traders or investors takes a good advantage in owning more tokens to make profit in the future terms. The more tokens created and broadcasted to the public, the more growth and acceptability of cryptocurrency in the globe.
Explain one example of a token that has been IDO but failed/rug pull
An example of a token that has been IDO but failed/rug pull is the Turtledex (TTDX). The TTDX token carried out it fundraising event under Binance smart chain (BSC) which is a decentralized storage platform. The crowdfunding was carried out using the Apeswap and pancakeswap decentralized exchanges (DEXs) on the Binance smart chain where the liquidity pools were opened.
The circulation of TTDX was opened to the public via the pancakeswap and apeswap DEXs on March 18th at 15:00 UTC time. In 24 hours’ time, the IDO event led to a total funds worth $2.5 million raised.
After the circulation of the TTDX token on the IDO platform, there was drop down of the token to a close zero caused by the removal of liquidity of the token from the two DEXs platform. This single act led to the confirmed theft that was published by Defistalker on a twitter link which warned the native token holders of a possible scam on the platform. The scenario caused the failure of the token on IDO as well as the rug pull event that occurred.
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
The two tokens I will be talking about are the Raven protocol and the CoinBurp
Raven Protocol
Raven protocol is a decentralized platform founded in 2017. It was the first token to lay it token via the IDO platform in 2019. The circulation of the token started on June 17th 2019 and ended on June 18th circulating 300,000,000 RAVEN to the public on a list price of 0.00005 BNB per token and this circulation was done on a first come first serve base. the circulation of the token was just a 24 hours event.
CoinBurp
CoinBurp (BURP) is one of the token that was made known to the public via the IDO event using the Polkastarter decentralized exchange platform. CoinBurp announced their IDO event around March 2021, here users where told on the steps to be taken to join in the IDO event which is as follows. Users where told to apply by joining the whitelist so they could be registered and verified before they could be eligible for the IDO event. The IDO was slated to begin by 26th July and end on 26th of July and the whitelisting to close on July 22nd while the verification process was to run till 25th July.
CoinBurp circulation started with a circulation price of $0.110 per each. A 1% of CoinBurp token’s maximum supply which was 5,000,000 was allocated for the IDO circulation event.
Comparing the two tokens above, Raven protocol launched it token using the Binance platform while CoinBurp used the Polkastarter platform to launch it token
The circulation price of RAVEN was $0.00005 per eachcheaper than that of CoinBurp which was at the circulation price of $0.110 per each.
Raven protocol allocated 300,000,000 of its token for circulation while CoinBurp allocated 5,000,000 of it token for circulation
The IDO circulation event of RAVEN closed on the 18th of June, 2019 while that of the CoinBurp closed on the 26th of July 2021
My opinion on the result of the analysis are as follows:
The condition and requirements as per the joining of the Raven protocol IDO is simple as compared to that of the CoinBurp IDO which is complex
Secondly, more users could get the RAVEN token because of its cheaper circulation price of $0.00005 per token as compared to CoinBurp token which circulated at a price of $0.110 per token.
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:
visit the site– https://app.polkaplay.io/ and login
Then visit another site – https://app.poolz.finance/
Then connect your wallet (BSC chain)
Then search for the “Polkaplay” tab and then click on the “Details”
After this, you click on the “Join Whitelist” option 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 as shown below:
Conclusion
Initial Dex Offering (IDO) is a new platform which plays a great role in the growth of cryptocurrency as it helps in the circulation of newly created token to reach public. The public get to know a new token via the IDO platform through crowdfunding. If the IDO platform is utilized at its best, I believe will bring more influx of the populace to the knowledge of cryptocurrency world and its usage rather than the doubting fact of the populace. The IDO platform is a wonderful one for the development of tokens as well as cryptocurrency world.
Thank you Prof. @wahyunahrul for this lecture series, it has been a wonderful one being my first time of hearing the about Initial Dex Offering (IDO).