What is an Initial Dex Offering (IDO)?
To put it in simple terms, IDO is a novel concept that runs around the idea of crowdfunding. Now all of us know what crowdfunding is. But what does it mean in the crypto space?
IDOs, or Initial DEX Offerings, are tokens that represent any form of asset that is issued on a decentralised exchange (DEX). An IDO can be made for any commodity, including bitcoin, art, music and other digital assets. Initial DEX offering eliminates the exchange fee levied by the initial exchange offering because of its decentralised nature.
What are some benefits of IDO?
First and foremost, it’s decentralised nature is what makes it stand out of the crowd.
IDO is a hybrid of an ICO and an IEO with a decentralised exchange. It’s a next-generation model that doesn’t require any intermediary or a third party or a central authority in order to gain permission from anyone. It is also advantageous because of its cost-effectiveness, as well as the benefits of fast trade and liquidity.
Fair and Transparent Fundraising
Private investors buy lump sum amounts of tokens at a lower price, but the value of tokens increases when the token sale is public. IDO is not like typical fundraising methods. It ensures a seamless token development and liquidity to create a fundraising platform that is fair and open.
Because of high liquidity, the IDO coin can be traded immediately. It is very common among the investors to trade their tokens as soon as they launch the project. This gets them a higher value for their tokens.
Liquidity, by definition, refers to the capacity to purchase and sell quickly on the market. Or, to put it another way, how promptly you can collect your money. The project’s token acquires immediate liquidity in the IDO, which can influence the token price.
Why Algo ventures?
We have a huge team that works solely on blockchain projects and enhances their skills almost everyday. Our team has people from all ages which makes us unique in a way because we don’t work by traditional methods. Our innovative mindset is our biggest strength. So, if you want to develop your IDO Platform today, come join hands with Algo Ventures as we will deliver your project in a timely fashion. Our services are unique, ever-evolving and comprehensive.