Beginner Course] Steemit Crypto Academy Season 3 Week 5 | Initial Dex Offering (IDO)

HOMEWORK TASK

1. EXPLAIN IN YOUR PERSONAL OPINION WHETHER IDO SHOULD BE DONE IN CRYPTOCURRENCIES

2. CAN IDO HAVE SIGNIFICANT IMPACT ON CRYPTOCURRENCIES WORLD

3. EXPLAIN ONE EXAMPLE OF TOKEN THAT HAD IDO BUT FAILED/RUG PULL

4. MAKE A DETAILED FUNDAMENTAL ANALYSIS ON TWO TOKENS THAT HAVE DONE IDO, COMPARE THE TWO TOKENS, THEN GIVE YOUR OPINION ON THE RESULTS OF YOUR ANALYSIS.

5. LOOK FOR A TOKEN ON IDO AND EXPLAIN THE STEPS TO PARTICIPATE IN THE EVENT.

6. CONCLUSION

EXPLAIN IN YOUR PERSONAL OPINION WHETHER IDO SHOULD BE DONE IN CRYPTOCURRENCIES

IDO



Source

YES Because INITIAL DECENTRALIZED OFFERING (IDO) is a wonderful event by which a token is launched on decentralized blockchain it's initial price by it's protocol in order to attract more investors on the project.

It's an event where millions of dollars are generated as fundraising for the project and good wishes of the token.
The token of this events are usually new and have not been listed on the decentralized Exchange platforms, and so attention from investors are very low. But with this, the event that are very new on decentralized ecosystem, will become well known and well-listed on the decentralized exchange platforms and their prices value will skyrockets as well.

A successful IDO is a wonderful event that have great impact on its tokens. And this great impact includes;

• Millions of dollar fundraised for research and development on the project.
• Create awareness and enlightening for the token and the project.
• More listings and trading pairs for the token .
• High rate of the price of the token.

CAN IDO HAVE SIGNIFICANT IMPACT ON CRYPTOCURRENCIES WORLD

INITIAL DECENTRALIZED OFFERING have impacted heavily into the cryptocurrency world with great innovations like;

• TOKEN ACQUISITION

IDO provides new different tokens to it's participants from our fundraising event in the of cryptocurrency world. Although the tokens and coins are of similarities in usage and can also be used as a context.

But the possession of this token is use as a means of making payments and other activities to have influences over the protocol which is notify in Dash network, where the possession of its coin, has an influence on it's network. Since the coins are unique to it's networks, a token breaks that barrier and becomes unique to all networks and payments with it does not involve intermediaries, because of it's a great product of the Dex.

• LIQUIDITY

The participation in the IDO allows such tokens to have immediate Liquidity without slippage, since the protocol of it's token in IDO is normally required to obtain a Liquidity for it's Liquidity pool in order to enable swapping, unlike the ICO/IEO, where many coins provided are limited in the number of the various liquidities with higher slippage.

• INCREASED IN PRICE

The involvement of IDO tokens have a positive impact on prices. Thus an increase in the prices after the event has more economic development experienced in the project.
For example is the UMA protocols , which engaged in a successful IDO with an initial price of a token at $0.26. And as more investors and swapping of the token, the prices skyrocketed to over $2. This shows a positive significance of an IDO events towards tokens and its projects.

• LOW COST LISTING OF TOKEN

Tokens that are listed on various Exchange platforms cost huge amount of money. And so some are not listed because the censorships do not merit from those platforms but under IDO, the Liquidity Exchange, listed it promptly, at a low cost fee.

EXPLAIN ONE EXAMPLE OF TOKEN THAT HAD IDO BUT FAILED/RUG PULL

Decentralized ecosystem has high market capitalization, which create room for hackers and scammers to carry out illegal activities.
One of the commonest illegal activities on IDO is the RUG PULL. Which formed about 90% of all crypto related fraud activities in the year 2020 reported by CipherTrace.

source

Defi Rug Pull is an exit scam where developers rejected the project and run away with no trace of the investors’ fund after a greater improvements and a successful token in the project. It mostly occur when a scammer crate a fraudulent token and list it on decentralized platform with no audit. Which sometimes is paired with other virtual coin like the Ethereum to encourage swapping. And also to attract customers for more fund raising , and then after they withdraw all those fund raising tokens and run away.

The good example of rug pull scam is the Compounder finance, Which Early this year, after a successful IDO, the Creator drains a high asset from the investment of about $9.9million dollars, wrapped Bitcoin of $82,000, $5.1 millions of ether, $6 millions of DAI etc was stolen. With the help of the malicious contract, which they replace it by the previous smart contract, which was audited duly.

MAKE A DETAILED FUNDAMENTAL ANALYSIS ON TWO TOKENS THAT HAVE DONE IDO, COMPARE THE TWO TOKENS, THEN GIVE YOUR OPINION ON THE RESULTS OF YOUR ANALYSIS

MAKI GOVERNANCE TOKENS FROM MAKISWAP PROTOCOLS

MakiSwap has a successful protocols but private IDO with $1.4 millions USD had been raised for further development of the project, where it has been listed on Binance smart contract and Ethereum.

From Coinmastercap.com, Maki token ranked #3062, current Market price is $0.09464SD with 24 - hours trading volumes of $345698USD. And with a maximum supply of 1,000,000,000 and circulation supply of 48021584 MAKI token.

The MAKI token is also listed on many decentralized and centralized Exchange platforms like the BitMart, Hotbit and Bitlaxy, which may have trading pairs like MAKI/USDT, MAKI/BTC etc on an Exchange platforms.

TERA TOKEN FROM TERABlock

Currently, this project has two fundraising successful event, the first was the private funding loyal investors , who contributed $2.4 millions, and the second fundraising event on IDO was $3 millions USD. In all, about $5.4 millions USD fund was raised for the development of this project.
From Coinmastercap.com, token ranked #1080, current Market price $0.005507USD with 24 - hours trading volumes of $112886USD. And with maximum infinity and circulation supply of $844711128.00USD Tera coin.

The Tera coin is listed on many Exchange platforms like the Vitex, BigOne, Hotbit etc which may have trading pairs of TERA/BTC, TERA/ETC and TERA/USDT etc.

MY OPINION BASED ON THE ANALYSIS ABOVE.

I can say that, the Tera token advantage is highly comparative over other coins, due to its percentage increase 19.68% over the trading volume, which is seen as a great investment opportunity for investors.

LOOK FOR A TOKEN ON IDO AND EXPLAIN THE STEPS TO PARTICIPATE IN THE EVENT

PANDORA Protocol

Pandora is a highly infrastructural and scalable mechanism that allows ownners of asset to convert their real-world illiquid asset into a token in a liquid state.

To participate in PAID IGNITION.

Paid Ignition is one of the best launched cryptocurrency with the best token incentive mechanism. Below shows the steps involve;

STEP ONE
Log into PAID IGNITION WEBSITE.

STEP TWO
click on connect your wallet,

Using Metamask

STEP THREE.

Now verified your account with your personal details ( picture, address etc.) in the form of kyc verification.

STEP FOUR

Then click on join pool of the Pandora token, to involve.

CONCLUSION

Looking at IDO critically, I can confidently say that on a decentralized platform, IDO is the future of initial launching of cryptocurrency. Since it has great innovations such as the immediate swapping and low cost liquidity. This event makes more funds available for further improvement on the protocols and projects.Though IDO has some rug pulled and limits, but with good and proper audition and checks will improve the investors trust on this event.

Thank you
Cc: professor @wahyunahrul