Crypto Academy Season 3 Week 5 | Homework Post for Professor@wahyunahrul | Initial Dex Offering

Hello everyone.
It is another day again. It is my pleasure to submit this homework post. The 5th Week of this crypto academy has been going on well. I have attended the first beginner lecture and this is my homework for the second lecture. Thank you professor @wahyunahrul.
At the end of the lecture, Prof. posted 5 questions. The questions read:

1. Explain in your personal opinion whether IDO should be done on cryptocurrency.
2. Can IDO have a significant impact on the cryptocurrency world?
3. Explain one example of a token that has been IDO but failed/rug pull.
4. 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.
5. Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO.

So, I will be attending to the questions one after the other.

1. Explain in your personal opinion whether IDO should be done on cryptocurrency.

To start with, IDO means Initial Dex Offering. IDO, just like airdrops, is an event in the world of cryptocurrencies. This event takes place in order to do a kind of fund raising for a cryptocurrency which is about to be launched. Unlike airdrops where the event is often held on the website of the Community that created the project, IDO is held on a decentralized exchange to introduce the token to the entire populace so people may be aware of the coins and thereby attracting investors.

IDO, though a new project or event, should be done on cryptocurrency. The reason is, if the coins or token will be known by people, then there is need to organize IDO event for the token.
Since the event is done basically to introduce the token to people in order to raise fund for the project, then it should be done on cryptocurrency. The organizers or community which organize the event will have realized some amount of money. They can use this fund for the growth of the project.

2. Can IDO have a significant impact on the cryptocurrency world?

Like I said above, IDO is an event where token or coin is launched via decentralized exchange. The purpose of the event is to do crowdfunding for the coins.
IDO is very important to crypto world. Since the first successful IDO was organized, it has created a lot of significance in the cryptocurrency world. One of the impacts on the cryptocurrency is that it creates and offers a better and immediate liquidity.

Not only this, since this event is offering initial price for the coins, every single person has privilege to participate since the initial price is not high. Also, when the organizers offer the initial price on a decentralized exchange, it creates liquidity as the people who invest on the tokens will hold the coin.

Also organizing IDO on cryptocurrency will increase the number of people who are willing to invest on the coins, Since the organizers would have made the coins known and everybody would have heard about the coins on the decentralized exchange.

3. Explain one example of a token that has been IDO but failed/rug pull.

A token called Refinable Native Token (or FINE token) was stated to hold the Initial Dex Offering. Binance smart chain was proposed as an exchange platform for the coin.
It was announced that the IDO event would take place on Polkastarter (Polkastarter is a decentralized launchpad for cross chain-tokens pools and auctions) on the 23rd of April 2021.

According to the organizers, it's said that about 500million FINE token will be distributed to people. This worth about $180,000. The distribution was said to be in two pools before listing the token on PancakeSwap.

Aftermath, the event failed because of the manipulation of bot and it was said that the contract leaked before the launch. People who invested their money lost their money.

4. 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 question, I am going to talk on two tokens that have done IDO. There are many tokens which have been successful in the IDO event, but for this question, I will talk on:
✓ Scaleswap
✓ IMM
Now let me get right to the discussion.

Scaleswap

According to the announcement published, Scaleswap IDO event was stated to be conducted on polygon and each person willing to participate is required to have a wrapped version of ETH on polygon. A warning was given by the organizers to the participants to get correct wrapped ETH (WETH). The pool was stated to open on July 21st, 2021 at 10:30am UCT.

The organizers gave prerequisite.
The Prerequisite is as follows:
• Each participant was expected to visits https://app.scaleswap.io and connect via Metamask. This is to ensure that each participant see the balances of ETH on Ethereum and WETH on Polygon.
• The organizers recommended metamask either inform of mobile or desktop.
• Participants are enjoined to add SCA tokens to their metamask.
• Participants are enjoined to send the organizers the correct participation wallet during the Whitelisting and KYC!
• It was stated that the scaleswap Pool would have as swap pair ETH/SCA (technically WETH/SCA).

Now, the steps for scale pool participation that the organizers listed are:

Step 1.

Participants were expected to transfer their participation amount to polygon. The amount should be transferred from Etherum mainnet to polygon at least 24hrs before the start of the IDO. They gave three methods by which participants can do the transaction
A. They said the transfer could be done by "easy transfer method" which is by transferring ETH from each participant's Ethereum connected wallet to polygon.
B. Another method they gave is what is called "Optional transfer method" which is by using standard polygon bridge to transfer fund from Etherum to polygon. This process doesn't involve using the organizers app.
C. The last method is by using "the polygon native method. But this method calls to have experience with polygon. Participants can buy the WETH on Quickswap exchange (https://quickswap.exchange/#/swap)

Step 2

The next step is to join scaleswap IDO pool.
It is stated that once each participant has received the successful whitelist email and the time of pool has come, they can swap their WETH for SCA. Before they can receive the email, their KYC must have been successful.
Once the whitelist is seen "successful", participants can join the pool.
To join the pool, participants will be asked to enter the their wished participation amount in order to join the pool. Then after entering it, they can click on "join pool." Then after clicking on it, the allocation of the participants would be increased on their dashboard.

Step 3

This step is for participants to claim their token. I.e their SCA token.

Step 4

This step is optional for the participants. But the organizers suggested that the participants can hold on polygon or ethereum or provide the liquidity for the SCA token

IMM

IMM token IDO event was scheduled to take place on the June 19, 2021 at 11:15am to 1:15Pm UTC. The organizers proposed to sell $150, 000 worth of IMM and 1IMM equivalent to $0.6 which is the public sale price that was announced by the organizers. It was announced that the sale type is first come, first serve.

In the announcement released, the organizers said, each participant must maintain $BSL token in their registered wallet in order to participate. At least they must maintain it for the entire time. Each participant must have enough$BSL tokens in their wallet, if they don't have, they won't be able to participate.
The organizers gave slots for holders of $BSL token.
Bronze ( Holder of 500+ BSL) =280 slot
Silver (Holder of 1000+ BSL ) = 160 slot
Golden (Holder of 2500+ BSL) = 126 slot
Platinum(Holder of 5000+ BSL) = 105 slot
However, it was stated that those who are not holder's, (i.e non holders of BSL) they must be on the whitelist to be able to participate in the event. The total reservation for these category of people was 100slot

Below are the steps the organizers listed to join IMM IDO event on BSL Launch

Step 1

Each Participant was expected to click "go to app" button on BAsc launch website before the IDO begins.

Step 2

The next step is to tap on “B-Launch” on the taskbar

Step 3

Then Participant are enjoined to click “Connect wallet” and connect your Metamask Wallet (BEP20)

Step 4

This step is where the participants will select the pool. Participant are enjoined to join correct pool as there would be four pool on the site. Then they were to join the pool once the IDO begins.

Step 5

The next step is to input the amount of the BANK they are willing to buy the token. Here it's required that they input metamask wallet.
They are required to confirm the gas fee on the wallet and once the transaction is seen as 'successful' they can go ahead to claim the token.

Step 6

They can now claim the token, and wait for the IDO time to elapse.

Comparison Between IMM IDO event and Scaleswap IDO event

The start date for Scaleswap IDO was July 21st, 2021 at 10:30 UCT time, while that of IMM IDO was june 19th, 2021 with the start time to be 11:15am UTC time. This means that IMM IDO is about a month holder than Scaleswap IDO.

The sale price of IMM token at the event was $0.6 (i.e 1 IMM = $0.6), While that of Scaleswap token was $0.350 (i.e 1 SCA = $0.350). This means that the price of IMM was higher than that of Scaleswap. Now the current price of Scaleswap is $0.68 and that of IMM is $0.246. This means, Scaleswap token has appreciated in price, while IMM has not. Rather it depreciates.

Both the organizers of the event recommended metamask. IMM IDO required that the participants have a registered metamask wallet (BEP 20). Scaleswap IDO event also required the participants connect with metamask either in form of mobile or desktop.

IMM IDO organizers have reservations for some category of people. The reservation was based on the amount of BSL token they hold. Whereas, Scaleswap IDO organizers didn't announce any reservations.

Scaleswap required that the participants transfer fund from the ethereum mainnet to polygon at least 24hrs before the start of the IDO, Whereas IMM required that the participants have or hold some amount of BSL token.

My Opinion on the result of the analysis.

From the result of the analysis, it's observed that the current price ($0.68) of Scaleswap token is greater than sale price ($0.350) of the token at IDO event. This token has appreciated. Whereas, the IMM TOKEN current price ($0.24) is less than the sale price ($0.6) at the IDO event. Hence, the participants who invested on scaleswap token would have been having high ROI. And I would have loved to be a participant of the Scaleswap token if I have had this information.

Also the organizers of IMM IDO have reservations for some category of people. And the reservation of the slots was based on the number of BSL token they hold. The organizers of scaleswap didn't have this. This reservation in IMM will not allow the participants to participate at equal rate whereas, everyone was on the same level in scaleswap. Therefore, scaleswap token IDO was good than IMM IDO.

5. Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO.

One of the tokens that is currently IDO is cardence.oi. The cardstarter token IDO started on the 28th July, 2021 at 3pm UTC.
Now I'm going to explain the step to participate in the IDO event. Before I move on, this resources link (https://www.cardstarter.io/)will be of help for those want to join. Having said that, let's continue.
To participate in cardstarter IDO, there are five steps or things you must do.

1. KYC
2. Tier system
3. Staking
4. IDO registration
5. IDO event
   Now, let's start with KYC.

KYC

It's stated that the user who intend to participate in IDO must complete the KYC Project with fractal. The process of this KYC should be started at the earliest convenience. Each participant is given a grace of 24- hour to complete the KYC process after close of registration window.

Tier System

There are two types of tier system they want to use. They are: Wild Card Tiers and Face Card Tiers
Wild card tier is between 100 to 1000 $CARDS (Lottery Based Tiers with Guaranteed Allocations)
Face card tiers is between 1500 to 21000 $CARDS (Guaranteed Allocation)

Staking

Participants are expected to stake their CARDS token via https://app.cardstarter.io/ before they begin registration for an IDO
The minimum staking amount is 100 $CARDS. Anything less than the stated amount will not be accepted.

IDO registration

Every person who is interested to be a participant in the IDO event is expected to register. The participants should navigate https://pools.cardstarter.io/. and proceed with the registration.
It should be noted that staking and registration steps require Ethereum gas (gwei). Also the same wallet address should be used for KYC, staking and registration. Each partipants will be required to connect their Etherum wallet. See the screenshot below to see

_{Web Page of Cardstarter}

Registered accounts will be locked for 7days after whitelist sale. And it should be noted that during the period, any additional $CARDS staked can't be unstaked.

IDO event

Whitelist Sale
IDO should have twenty four hour whitelist sale and partipants will have their guaranteed allocations.

Conclusion

I have learnt what Initial Dex Offering (IDO ). I must confess that it my first time hearing the name. Although I know that there is an event where the organizers of the tokens do raise fund and introduce the token to the entire populace. But with this lecture from Professor @wahyunahrul, I have been able to learn one or two things. I have been able to navigate through some website where to know ongoing IDO, upcoming IDO and outgoing IDO.

Thus IDO is an event that is very important to raise fund for the project and making entire populace to know the token to be launched. This event is like airdrops where people benefit by receiving token in the wallet but that in case of IDO, people need to invest little amount of money to buy the token.