CRYPTO ACADEMY:::::: HOMEWORK FOR BEGINNER'S CLASS BY @sammylinks
Hello everyone,
I'm very happy to participate in this week's lecture mentored by our esteemed crypto-professor @wahyunahrul which centered on the event called "INITIAL DEX OFFERINGS" .
This post is structured based on the various homework task given as stated below:
- EXPLAIN IN YOUR PERSONAL OPINION WHETHER IDO SHOULD BE DONE IN CRYPTOCURRENCIES
- CAN IDO HAVE SIGNIFICANT IMPACT ON CRYPTOCURRENCIES WORLD
- EXPLAIN ONE EXAMPLE OF TOKEN THAT HAD IDO BUT FAILED/RUG PULL
- 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.
- LOOK FOR A TOKEN ON IDO AND EXPLAIN THE STEPS TO PARTICIPATE IN THE EVENT.
EXPLAIN IN YOUR PERSONAL OPINION WHETHER IDO SHOULD BE DONE IN CRYPTOCURRENCIES
MY ANSWER IS YES Because INITIAL DECENTRALIZED OFFERING Which is shortened as IDO is a wonderful event where a token are launched on decentralized platforms at it's initial price by it's protocol to attract more investors on their project. It's a fundraising event where million of dollars are generated for the good wishes of the token and the project.
These token that undergo this event, usually are new and have not been listed on the decentralized Exchange platforms or where it's listed, their attention from investors are very low. But with this event that's very new on decentralized ecosystem, these tokens will become well known and well-listed on the decentralized exchange platforms and their prices value will skyrockets.
Successful IDO is a wonderful event with great impact on those tokens. Those great impact are Advantages and include:
- Millions of fund raised for the development and further research on the project.
- A great awareness and enlightening campaign for the token and the project.
- Major listings and trading pairs for the token .
- The high increment rate of the price of the token.
IDO is a wonderful event with same principle/operation/policies with similar events like IEO and ICO but a lot of disparities. The differences can be noticed in the table below.
| PARAMETERS | IDO | ICO | IEO |
|---|---|---|---|
| TYPE OF CRYPTOCURRENCY OFFERING | TOKEN | COIN | COIN |
| LAUCHING PLATFORM | DECENTRALIZED PLATFORMS | WEBSITE OF THE PROJECT | CENTRALIZED PLATFORMS |
| Wallet Used | cold wallets | cold wallets | hot wallet |
| Exchange fee | No | No | Yes |
CAN IDO HAVE SIGNIFICANT IMPACT ON CRYPTOCURRENCIES WORLD
INITIAL DECENTRALIZED OFFERING have impacted favourably into the world of cryptocurrencies with a great innovations like these:
TOKEN ACQUISITION
IDO offers a token to it's participants which is new and different from our fundraising event in the world of cryptocurrencies. Although token and coins are similar in usage and can be used as a context interchangeably. But the possession of this governance token can be use as a mean of payment and other useful features but it still have an influences over the protocol which is only noticable in Dash network where possession of its coin, can influences it's network. As the coins are unique to it's particular networks, a token breaks that barrier and unique to all networks and payments with it does not involve intermediaries since it's a great product of Dex.LIQUIDITY
The participation in the IDO enable such tokens to have immediate Liquidity without slippage because the protocol with it's token in IDO basically required to obtain Liquidity for it's Liquidity pool to enable swapping.iUnlike what is obtainable in ICO/IEO, where many coins offered are limited in the number of the various liquidities with very high slippage.Increased prices.
The involvement of tokens in IDO have a positive impact on it's prices. There is an increment in the prices after the event as many economic development are experienced in the project.
For instance, UMA protocols engaged in a successful IDO with the initial price of the token at $0.26. as the more investors and swapping of the token. The prices skyrocketed to over $2. This is one of the positive significance of IDO events towards tokens and their projects.LOW COST LISTING OF TOKEN
Before a token/coin are listed on various Exchange platforms, it cost huge amount of money. Some are not listed because it did not merit the censorships rules of those platforms but when token underwent IDO with Liquidity Exchange, it get listed promptly and at a very low gas fee for the new smart contracts deployed to manage it's Liquidity pool and asset's token.
EXPLAIN ONE EXAMPLE OF TOKEN THAT HAD IDO BUT FAILED/RUG PULL
Decentralized finance ecosystem have experienced high market capitalization of over $200b and does not have central intermediaries in their financial services. These great merits create a prime arena that attracts the hackers and scammers to carry out their illicit activities.
One of their illicit activities that so common on IDO is called RUG PULL. CipherTrace reported that Rug Pull formed over 90% of the all the Crypto related fraud of 2020.
Defi Rug Pull is a new form of exit scam when a developer abandoned the project and run away without trace with the investors' funds after a successful IDO and great improvement in the project. It usually happens when a fraudulent token creator create a token and list it on decentralized platforms without audit. They can even pair it with some leading digital coins like Ethereum etc and encourage swapping. After a successful fundraising event (i.e, IDO) to attract more customers and raise more funds. These scammers steal those fund raised and withdraw all the fund in the assets' token and escaped as shown on the picture above. To the detrimental effects of the financial status of the investors.
Compounder finance is the good example of rug pulled Crypto related scam. Earlier this year, after a successful IDO, the Creator of this Compounder finance drains a huge asset from investment of about $10.8 million dollars. Wrapped Bitcoin of $750,000, $4.8 millions of ether, $5 millions of DAI and other funds of their investors was stolen and the malicious contract enable them to steal those funds which they used to replace the previous smart contract that was duly audited.
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 protocols had a successful but a private IDO where $1.4 millions USD was raised for the further development of the project and the MAKI token was listed on Binance smart contract and Ethereum.
According to Coinmastercap.com, Maki token ranked #2991, current Market price is $0.100506USD with 24 - hours trading volumes of $280,376USD. There's over 17.42% increase in the price of Maki token. The maximum supply of MAKI token is 1 billion and the circulation supply is unlimited.
IMAGE SOURCE
MAKI token is listed on many decentralized and centralized Exchange platforms like BitMart, Hotbit and Bitlaxy. It have many trading pairs like MAKI/USDT, MAKI/BTC etc on these Exchange platforms.
TERA TOKEN FROM TERABlock
Recently, This project had two successful fundraising event, the first one was a private funding from their loyal investors contributed $2.4 millions but a second fundraising event on IDO where $3 millions USD was raised. In total, over $5.4 millions USD was raised for this development of this project.
According to Coinmastercap.com, token ranked #1081, current Market price is $0.005474USD with 24 - hours trading volumes of $983.77USD. There's over 15.5% increase in the price of token. The market capitalization of $4,621,314 USD and the circulation supply of 844,711, 128 Tera Coins.
The coin is listed on several Exchange platforms including BigOne, ViteX and Hotbit etc with trading pairs of TERA/BTC, TERA/ETC and TERA/USDT etc.
| PARAMETERS | MAKISWAP TOKEN | TERA TOKEN |
|---|---|---|
| TOKEN RANKING | 2991 | 1081 |
| TOKEN PRICES | $0.100506USD | $0.005474USD |
| TRADING VOLUMES | $280,376USD | $983.77USD |
| Exchange platforms | BitMart, Hotbit and Bitlaxy. | BigOne, ViteX and Hotbit |
| Daily % increase | 17.42% | 15.5% |
MY OPINION BASED ON THE ANALYSIS ABOVE.
Both of the tokens have high comparative Advantages over other coins. There percentage increase over their trading volumes are high and a great investment portfolios for astute investors.
Other tokens that had a successful IDO and the projects are planning to had a similar fundraising event to generate more fund and development of the protocol. These tokens includes
- cBSN token from the BlockSwap Network.
- BENQI
- DON-KEY FINANCE
LOOK FOR A TOKEN ON IDO AND EXPLAIN THE STEPS TO PARTICIPATE IN THE EVENT.
PANDORA PROTOCOLS.
Pandora is a highly scalable, interoperable and high infrastructural mechanism that allows asset owners to convert their real-world illiquid asset into a tokenized liquid state.
The token name is PNDR With the price of $0.14 USD and total money raised so far is $150,000 and the IDO will end in eight(8) days time.
METHODS OF PARTICIPATING IN THE IDO.
There are two major ways to engage in this IDO. They are :
- Join the wishlist. In this wishlist, there are certain tasks given like joining their telegram group as stated below.
A SCREENSHOT OF MY TELEGRAM PAGE - Participate in the Pandora moon pool on paid ignition launchpad.
This is one of the best crypto launchpad in the world of cryptocurrencies. It has the best token and incentive mechanism. All project and token that is launched on this decentralized platforms are advertised via it's social media channels for more investors. To participate in the launching of any token/project here. This steps must be followed.
- STEP ONE
LOG INTO THE PAID IGNITION WEBSITE.
IMAGE SOURCE
IF YOU HAVE ACCOUNT OR SIGN UP FOR AN ACCOUNT WITH THEM
- STEP TWO
CONNECT YOUR WALLET,
SELECT AND CLICK ON CONNECT YOUR WALLET.
CLICK ON METAMASK, BECAUSE I HAVE AN ETHEREUM WALLET ON METAMASK.
- STEP THREE.
Verified your account with your personal details in the form of kyc verification. It involves picture, personal details, address etc.
- STEP FOUR
Click on join pool of the Pandora token. To get involved.
NOTE BEFORE
According to the picture above, there are restrictions to the citizens of these countries listed to participate in the pool.
CONCLUSION
IDO is the future of initial launching of cryptocurrencies especially on decentralized platforms because of it's great innovations like low cost Liquidity and immediate swapping. Through this event, funds are made available for the further improvement of those protocols and projects.
Although IDO have some limits and breeds rug pulled schemes, proper audition and great checks will keep improving the trust of investors on this wonderful events.