Steemit Crypto Academy Season3 Week5 | Initial Dex Offering (IDO)
EXPLAIN IN YOUR PERSONAL OPINION WHETHER IDO SHOULD BE DONE ON CRYPTOCURRENCY
IDO is an acronym for Initial Dex Offering and DEX is an acronym for Decentralized Exchange
IDO is the launching of cryptocurrency on a decentralized exchange inorder to raise money from small term investors. IDO is a very good strategy for raising funds within a short period of time because it has been confirmed that a lot of individuals have moved/migrated their funds from a centralised exchange to a decentralized exchange. Someone like myself, I prefer working with decentralized exchange than a centralized exchange.
Based on my opinion, IDO should be done on cryptocurrency for the following reasons:
QUICK TRADING:
In an IDO, tokens can be bought and sold immediately, how do I mean? What I mean is that an investor can purchase a token when it is of an insignificant value and sell it off immediately the token is launched, he can also choose to wait until he notices a considerable increase in the price value of such token, hereby making enough profit.LEGAL FUNDRAISING:
IDO is a legal fund raising event where anyone can participate, be it a private investor or a company. Permission is not needed from anyone to start this fundraising event.
CAN IDO HAVE A SIGNIFICANT IMPACT ON THE CRYPTOCURRENCY WORLD?
My answer to the above asked question is a solemn yes, IDO can have a significant impact on the cryptocurrency world.
The following points below provide the basis for my conviction that IDO can have a significant impact on the cryptocurrency world.IDO is a platform for fair fundraising, here, private investors/companies buy tokens in large quantities before it is been launched to the public and this point, the token will be of nearly insignificant price value, and the moment the token has been launched to the public, the public starts investing , the price of such token starts to escalate/skyrocket, it is at this point that those that purchased it before it was launched will begin to sell, hereby making a lot of profit. This process is related to that of a whale manipulating the Crypto market, the only difference is that IDO is not a malicious act, no one is been tricked.
IDO reduces funds that are meant for liquidity. This means that investors can swap to any token of their choice at a very low rate, unlike the others where almost half of the price of the token goes for liquidity.
Once a token is launched via IDO, trading begins immediately. A trader can choose to sell off his assest immediately the token is launched
Another importance of IDO is that it offers quick liquidity.
I hope with those few points, I have been able to proof that IDO can have a significant impact on the cryptocurrency world
EXPLAIN ONE EXAMPLE OF A TOKEN THAT HAS BEEN IDO BUT FAILED/RUGPULL
When a token is said to be rugpulled, it means the token has been proven to be a scam; whereby malicious crypto programmer run away with investors fund, leaving them with nothing.
In other words, a rug pull is a dubious act in the Crypto world whereby dubious Crypto launchers launch a token and thenrun away with investors fund, leaving them empty handed.
This happens mostly on Defi system where a token is created by malicious individuals and then linked to a promising cryptocurrency like Bitcoin, etherum and the likes.
An example of of cryptocurrency that have been rugpulled is Bitconnect(Bcc), Bcc is an old cryptocurrency that was launched in 2016 and because of how promising it looked, it hit it's all time high in December 2017.
Bcc was one of the most promising coin that year as it outperformed every other coins but unknowingly to investors, Bcc was a pyramid scheme and it was later revealed for what it was and investors lost everything they invested in it as it collapsed.
MAKE A DETAILED FUNDAMENTAL ANALYSIS OF 2 TOKENS THAT HAVE DONE IDO AND COMPARE THE TWO TOKENS. THEN GIVE YOUR OPINION ON THE RESULT
The token that I plan to discuss is Deficity and Open ocean.
DEFICITY:
Deficity city(Dfc) as a token ended it's IDO on 16july 2021, with it's current price at $0.0742, it got to am all time high of $811074.
Deficity has a circulating supply of 10,933,333 and a total supply of 99,979,124. It's platform was the DuckSTARTER and a total participants of 223.
OPEN OCEAN (OOE):
Open ocean has an all time high of $27,293,311 and a circulating supply of 78,989,285 and a total supply of 1000000000 and a private/presale of 102700000(10.27%) and a public sale of 6250000(0.63%)
From my analysis of both coins , I noticed that the objective of the IDO was achieved, funds were raised, profit was taken, a large quantities of the token was supplied.
LOOK FOR ONE TOKEN THAT IS CURRENTLY IDO AND EXPLAIN THE STEPS TO BE ABLE TO PARTICIPATE IN THE IDO
An example of a token that is currently IDO is MELD (JULY1-DEC18)
We need to be aware that every IDO will be done on different Dex and different wallet, inorder to participate in such, one needs to do the following;
- Create a wallet: The creation of wallet is the first step to take as it helps provide a place where the token can be kept.
- You need to sign up, you sign up by filling the registration boxes with the appropriate information
- After signing up, you will be asked to follow up some pages, turn on your notification for such pages and then like the page, this activities will enable to get notified on any update via the launching of such token.
After all of these have been done, then you have successfully participated in it's IDO.
CONCLUSION
IDO is a strategic method of fundraising as it allows any individual to participate in it's event, the individuals do not need permission from anyone inorder to participate in IDO.
Another importance of IDO is that it is free from the manipulation of malicious individuals and it also helps in quick trading.
I say a big thank you to prof @wahyunahrul for this assignment, although I must confess that the assignment is a tough one that requires lots of research, time and energy.
I hope my efforts in this assignment will yield too results.