Cryptocurrency crowdfunding and crowd investing are gaining momentum despite the crypto winter and high market volatility. Since the beginning of the year, venture investors have invested more than $17.5 billion in cryptocurrency startups, according to Reuters. The share of crowd investing accounts for approximately 25-30% of total investments in startups, and this figure is constantly growing. Today’s launchpads are capable of raising millions of dollars for early-stage projects. If you already know what crypto IDO is, feel free to switch to Launchpad P2B, and for beginners, we have collected the most effective and promising crowdfunding platforms worth keeping an eye on.
Fundraising for crypto projects has been around for over half a century. Various approaches have been tried to attract investors for funding, including the popular ICO (Initial Coin Offering) and IEO (Initial Exchange Offering). Recently, however, a new funding method has come to the fore. A crypto IDO or DEX Initial Offering is a way to attract investment while reducing some of the hassle associated with other funding options. Let’s take a closer look at what does IDO mean in crypto and what are the top Crypto IDOs?
What is an IDO crypto?
Crypto projects can raise money from investors via IDO. Although it is quite similar to ICO, this is meant to address various issues that the ICO concept has. Using a decentralized platform in place of a centralized approach, such as one employed by an ICO, is one way to achieve this.
Although many crypto launchpads will be familiar to you, that does not necessarily mean that they are the ideal choice for beginning a crypto enterprise. The top 5 Crypto IDO launch pads for cryptocurrency projects in 2023 are shown below.
Most likely, if you’ve been interested in cryptocurrencies, you’ve heard of Binance. But not everyone is aware that Binance has a cryptocurrency launchpad. Blockchain projects can raise the capital necessary to grow further in the cryptocurrency market by using the Binance token launch platform.
The audience of Binance is an advantage. With more over 10 million users, Binance can publicly introduce a new blockchain initiative. As a result, people who pick IDO on Binance have the chance to communicate with a lot of prospective users and investors.
Although it was only just founded, the top cryptocurrency exchange Bitget’s crowdfunding platform has already become quite well known among investors and companies. The platform’s key benefit is the assurance that new coins will be listed on the exchange. As a result, after the token sale is over, users can purchase or sell startup tokens.
Today, hundreds of thousands of people use it as one of the first and most well-liked launchpads. All DA token holders can vote to add a startup to the platform and buy tokens using the same method of payment thanks to the launchpad’s unique capabilities. Additionally, DAO Maker provides entrepreneurs with an incubator service where they can use a wide range of services to draw in funding.
The Polkastarter launchpad was initially made just to help businesses built on the Polkadot blockchain. But the developers made the decision to incorporate additional blockchains, like Ethereum, BSC, Solana, Polygon, Avalanche, and others, which dramatically increased the launchpad community and made it possible for entrepreneurs to run token sales. New entrepreneurs will have to put in a lot of effort to be on the launchpad because the Polkastarter team carefully chooses ideas for their platform.
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What does the future hold for IDO?
Now the IFO model is actively gaining popularity. It’s hard to say whether it can be called a traditional IDO, but they share key elements: liquidity pools and decentralized exchanges.
Instead of fixing their tokens directly, investors must first bid on a decentralized financial liquidity pool to earn tokens from that pool. For example, if a project wants to exchange its tokens for BNB as part of an IFO on PancakeSwap, investors must add BNB and CAKE to the BNB-CAKE liquidity pool stack.
The BNB-CAKE liquidity pool tokens are then blocked for new tokens, the project receives BNB, and CAKEs are burned. The number of tokens you receive will depend on the number of participants in the sale, and the excess funds will be returned to you from the stack. To make it easier for small investors to get an IDO share, you can use various features such as base sale and unlimited sale on IFO PancakeSwap.
Another potential IDO change could be mandatory KYC review and AML processes. Financial regulators around the world are increasingly interested in DeFi and their regulation. AML and KYC are now standard conditions for centralized exchanges and may become part of decentralized platforms in the future.
Launchpads open up chances that were previously only accessible to venture capitalists and other prominent investors to normal investors. However, there are two compelling reasons to fund a launchpad project. You want to access projects first. Second, you believe that people will value the native launchpad token.
The key reasons why the best crypto investors prefer Crypto IDOs over IEOs are affordability and security assurance. Due to availability, anyone can buy tokens for any amount during the IDO, and no additional verifications are required. In addition, there are no restrictions related to investor powers in the Initial DEX Offer, while they may be present in the Initial Exchange Offer.
Token offerings have become a separate industry with many nuances. It is generally safer to participate in sales through a decentralized liquidity exchange than through a project, but the key to a successful IDO is still choosing the right project. Always do your own research before investing in cryptocurrencies.