IDO (Initial Dex Offering)

source

What's IDO:

What's IDO in cryptocurrencies, IDO which is an acronym for initial offering dex offering the dex standing for decentralized. So it simply please the act by which new cryptocurrencies are being brought to any decentralized exchange. In IDO nee project uses this medium to attract investors with the hope of gaining traction and raising sufficient funds for their project before listing in a decentralized exchange and since it's decentralized exchange her they are able to dispense they tokens to their users, doing this without needing any middle man.

How is the process actually done. Well its quite similar to how ico is done, the date on which the coin or token will be offered to the decentralized exchange will be announced beforehand by the project team this is done in other to give ample opportunity to the masses to be able to actually buy this token with their existing crypto asset for those who wishes to participate in the IDO ad the team must have given a laid down detail how they will buy this token during the IDO.

When it comes to actually participate in this IDO the good thing is that it's open to everyone and anyone can join in a projects ido it's available for all wishing to participate infact provided you can do all that the project creators of the token require you can participate there is no restrictions.

When choosing whether to participate in IDO or not it is still proper that will do our own research to avoid any misfortune that comes from investing in a scam project as not all IDO's are actually legit and most times is usually associated with volatile movement in price often taking unexpected or unpredictable turns hence it's necessary we carry out a long and well thought out research on any project before deciding to participate in the IDO.

---

---

Key Characteristics Of An IDO

---

---

source

Now when we talk about IDO the first thing that should come to mind is ego can actually participate in this IDO well one of the key feature of an IDO is that it's open to everyone meaning all can participate in this initial de offering and this actually makes it to be distinguished from what we have in the typical fundraising in the traditional system and just like the name implies it only and can only take place in a decentralized exchange, no more no less.

IDO's are done only on decentralized exchange which means one can easily go in and purchase directly and unlike on some centralized exchange the fact this token is on a decentralized exchange it makes it possible for people to immediately start trading on this token immediately after listed that is instant liquidity is guaranteed.

There is a certain way that they distribute tokens in IDO, it's done in a very transparent manner and everyone who participated actually receive their tokens on their wallet and they tend to have active community engagement.

As with anything there are also some dangers to this investment as with any good thing they are a bad side and that is those with nefarious purpose also host IDO's sometimes with the intent of running away with people's money that's why proper research to determine the legitimacy of the project doing the IDO is necessary on our part before deciding to participate.

Thanks For Reading Through