[Beginner Course] Steemit Crypto Academy Season2 Week5 | Initial Dex Offering (IDO)
Thank you @wahyunahrul professor for this homework task. Below is my entry.
Homework tasks
Explain in your personal opinion whether IDO should be done on crypto currency
Can IDO have a significant impact on the crypto currency
Explain one example of a token that has been IDO but failed/rug pulled
Make a detailed fundamental analysis of 2 tokens that have done IDO and compare these two tokens. Also give your analysis
Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO.
Below is my research on the above questions;
Explain in your personal opinion whether IDO should be done on crypto currency
IDO in full is the Initial Dex Offering. This refers to the process of launching a crypto currency on a decentralized exchange(DEX). This is a blockchain project that makes a coin’s first publication on a Dex in order to raise funds from retail investors. The IDO represents any asset that is hosted on the decentralized exchange and since crypto currency works with a decentralized system, IDO is very useful to it.
IDO should be done to crypto currency because thy are more liquid compared to other tokens such as the ICO and IEO.
They involve a faster trading rate and lower costs for listing which prevents the issuer of the token from controlling how the fundraising round will move.
The purpose behind crypto invention is to make finance easier by decentralizing it. IDOs are a very important step to making this happen because they operate with a decentralized system. This makes them good for crypto because of their high liquidity, transparency and flexibility.
Can IDO have a significant impact on the crypto currency
Yes, IDO has a significant impact on the crypto currency because;
IDO attempts to solve issues with the ICOs by adding up possibilities to the crypto market through crowd funding with them. By this, entrepreneurs are able to release a blockchain product that surpasses malicious third party influencers while eliminating issues involving hackers and human errors.
Due to the decentralized nature of IDOs, projects donot have to pay high fees when fundraising and they don’t have to get permission from anyone as well.
IDOs are important also because they provide immediate access to liquidity and trading in the crypto markets. This is through delivering a secure wallet and trading platform that’s built into one interface. IDOs support a various types of wallets which simplifies their users’ experience.
Below is the calendar of IDOs that are ongoing.
Explain one example of a token that has been IDO but failed/rug pulled
A rug pull is a form of exit scam that scammers use. They pose as crypto developers and abandon the project then disappear with investors’ funds by taking away the DEX liquidity pool from the market.
An example of a token that has been IDO but rug pulled is the TurtleDex
The TurtleDex Protocol was operating under the Binance smart chain. It’s developers recently ran off with their investors’ funds shortly after raising 9000 Binance tokens that are worth 2.5 million.
The TurtleDex came up claiming it was a decentralized storage platform for all its users. It was able to raise money from people in a short period of money since it started in February and has disappeared recently this month. It claimed it can store data and preserve files of its users without needing to keep the money on a computer. The team then followed up a fundraising round by opening their liquidity on two BSC decentralized exchanges which were the PancakeSwap and the ApeSwap. Later on after the founders of the TurtleDex disappearing, all its websites, social media channels and others were deleted and went dark.
Make a detailed fundamental analysis of two tokens that have done IDO and compare them. Then also give your analysis
I am going to give my analysis on the Gelato token and the Alium Swap token.
Gelato token
The Gelato token project is a market place set to match developers’ demand for transactions automation and supply of a decentralized network of bots. It enables its developers to build automated dapps and allow bot operators to earn revenue from infrastructure necessary for such automation.
The Gelato token is the central focus point of all relevant stake holders on the network. The token is in existence to cater for the effective incentive alignment amongst all its platform participants, developers, their users and the bot infrastructure as a service provider.
Gelato has a variety of globally distributed node operators that make sure users’ transactions always get executed regardless the matter which makes it reliable.
It has a number of services it powers. eg limit orders on uniswap and quickswap. , the dollar Cost Averaging Strategy across DEXs., and the top up wallet if ETH balance gets too low
Alium Swap token
This is a crypto currency token generated on the Binance blockchain. The total supply of Alium Swap currently in supply is 3.29 million tokens. Alium Swap joined up with the oxpolygon which was aimed at improving liquidity to its issuers on blockchain protocols and make more flexible opportunities to increase earnings.
The Alium finance project is also preparing for the launch of ALM token farming in the near future so as to increase demand for the internal token of the project and expanding its user base by providing new innovative solutions for liquidity acquisition.
Similarities
• Both the Gelato and Alium Swap are under IDO however much they fall under different types.
• Boty tokens are aimed at increasing liquidity in crypto currency.
• Both the Gelato and Alium Swap tokens work with the decentralized exchanges(DEX)
Differences
| Gelato token | Alium Swap |
|---|---|
| Currently not trading | Currently still trading |
| Uses the Uniswap IDO | Uses the Binance Dex IDO |
My analysis is that the Gelato token is currently not operating while the Alium Swap is still operating. And the Gelato token is way better than the Alium Swap because it Ian more popular which makes it more reliable.
Look for one token that is currently IDO and give the steps to be able to participate in the IDO
I am going to give the steps on how to participate in the Potential token.(PMT token)
It is still ongoing and still has a months time till expiry. It uses a rally account
• Sign up for an account and verify for the rally account.
• You need to create a wallet with this decentralized exchange to prepare for the tokens received . eg binace wallet, polkastarter and Uniswap.
• Next, you will need to register your personal data and be able to participate. Filling in your personal information is very important because this helps your wallet safe from hackers.
• You then need to be an active participant in the IDO by following up some accounts on social platforms like twitter, Facebook and others so as to keep on track.
In Conclusion, it is good to participate in IDOs to prepare for the future since it is very clear that it has a bright future. It was first held on Binance Dex with the Raven Ptotocol as it’s first project. It is still new to many people but it is so important and better because of its decentralized system.