Crypto Academy / Season 3 / Week 5 - Homework Post for [@wahyunahrul ]||Initial DEX Offering (IDO)||
Greetings to everyone.Welcome to the crypto academy homework series.It has been a learning place for me.
QUESTION ONE
IDO stands for Initial DEX Offering.It is a fundraising and an awareness strategy used by communities that created a new project and is included or added to a Decentralized Exchange.This IDO makes more users in the DEX exchange to know about the new token and so can acquire it since many people are now moving to decentralized exchanges.
Creators of new projects will always create a token,then through IDO they will raise a reasonable amount of funds in a shorter time by incorporating the new into into a decentralized exchange.They can also make it in a way that users can exchange other cryptocurrencies for the token.For example holders of ETH in the DEX,can exchange the ETH for the new token.This process will increase the number of users having and holding the new token and also help the company to raise funds within a short period of time.
In a nutshell IDO is a fundraising project where the IDO token issued out to raise funds in a decentralized exchange which is not controlled by any central authority.
Yes.I think IDO should be done on cryptocurrency because for cryptocurrency business to stand the taste of time,there should be a healthy competition.So through IDO many new cryptocurrency will emerge to compete and cover up the shortcomings of older cryptos.
If IDO is done on cryptocurrency,it will make it possible for everybody no matter your financial status to buy since it is done In a decentralized exchange.It will also make people to make profit by buying in the early stages of the IDO and then selling to make profit later.
IDO done on cryptocurrency would help the create awareness for the new token and as such more people will acquire the new token.
QUESTION TWO
I believe that IDO can have a significant impact in the cryptocurreny world with the following reasons.
•IDO will make cryptocurrency transactions faster and reliable.This is because an investor can buy token in an IDO and sell it even on that same day to others and make profit.
•Another significant impact that an IDO will have in the cryptocurreny world is that it would enthrone a fair and open fundraising protocol where any user can enter the IDO project to buy the new or exchange it with other token without it be controlled by any central authority.
•Another significance of IDO project is that it offers easy liquidity.In this one a holder of the token can easily change it to cash at a faster rate.
•IDO projects are free from third-party favoritism or discrimination,free from human error and there is no central server to attack plus the fact that privacy is assured since it runs on a decentralized exchange.
QUESTION THREE
First let's define a Rug Pull-It is a situation where fraudulent people create a new token and incorporate it in a decentralized exchange so that it would garner large awareness,then they will pair it with a high ranking crypto like BITCOIN,when they(fraudulent new crypto creators) see that many people have swapped their BTC for the new token,they will withdraw everything in the liquidity will bring down the price of the new token almost zero.
Shark Tron is Defi project that was run on the Tron Blockchain.The project is created to produce an autonomous platform which would transit to self governance among the community members.The native token of the project is called Shark(SRX).The developer made it in way that one can exchange Tron(TRX) for SRX.
It was reported that the developed scammed the community and made away with hundreds of millions of TRX(around $10million).
The Official Tron Foundation Account confirmed the scan and contacts Binance to go after the offender although it was reported that Binance has frozen part of the funds.source
QUESTION FOUR
Screenshot from Coinmarketcap
Raven Protocol is a decentralized protocol that a cost efficient and faster training neural networks.It would be used to train AI engines or to share compute resources among nodes at a very high speed.
The consensus mechanism in the Raven Protocol is called Proof-of-Calculation.Where the node with the fastest calculation time receives the reward.
As at the time of making this post,RAVEN- the native token of the Raven Protocol has the following data.
RAVEN is ranked at number 1165 in the ranking on coinmarketcap.com .....Its price is $0.0008694 and it has a market capitalization of $3,886,500 with a trading volume of $1,825 and a circulating supply of 4.47 billion RAVEN.
Screenshot from Coinmarketcap
UMA token runs on the Ethereum blockchain and the protocol allows users to design financial contracts and synthetic assets.Here is a data for the fundamental analysis of UMA token.
It is ranked number 106 in Coinmarketcap and it's price as at the time of writing this post is $8.75...It has a market capitalization of $537,813,305 and a trading volume of $26,751,964...with a circulating supply of 62,035,735.85 UMA.
| CRITERIA | RAVEN | UMA |
|---|---|---|
| Price($) | 0.0008694 | 8.75 |
| MARKET CAP($) | Over 3 billion | Over 537 billion |
| TRADING VOLUME($) | 1,825 | Over 26 billion |
| SUPPLY | 4.47Billion RAVEN | 62 Billion UMA |
The result of the comparison shows that UMA is greater than RAVEN in all ramifications like price,market capitalization,trading volume avs circulating supply.
QUESTION FOUR
Pandora Protocol
Pandora protocol which has the token name as PNDR is a hybrid financial protocol for both DEFI and traditional finance.This protocol allows the conversion of non-liquid to tokenised liquid form.It is a bridge between real world and On-chain assets.The token would be distributed to the community, foundation,private sale,public sale,team and seed sale at different percentages.
•Visit ignition.paidnetwork.com
•Click on buy PAID
•Import your decentralized wallet
•Select token and Connect Wallet
•Open your wallet and Complete the process
IDO is a way of raising fund for a new project in a Decentralized Exchange.In this way the owners of the new project will create a token that users of the DEX Exchange can exchange with other cryptocurrencies.For example one can exchange his ETH for a new token via the IDO project.It is important to note that some IDO's are fraudulent in nature as the developer can make away with investors money- a situation called a rug pull.
Thank you @wahyunahrul for this class.