WePlay Follow Jun 4
· 4 min read
A token offering is usually an exciting opportunity for investors in the crypto ecosystem.ICO used to be the order of the day for crypto project teams looking for people to invest in them a few years ago, say around 2013 upward.The initial coin offering (ICO) was the first approach of crypto fundraising.The first ICO was the Mastercoin ICO in July 2013, and Ethereum followed a year later with its own ICO, raising over $2.3 million.
Many retail investors entered the crypto sector this way, and some early investors gained incredible amounts of money and became millionaires overnight.However, some investors found this approach to be a nightmare, since some crypto project teams were only there for a fast profit or to outright defraud them.All of this could only have occurred due to this unregulated approach to crowdsourcing funds.
The introduction of IDO (Initial DEX offering), however, has changed the game, as this aims to fix the shortcomings that have been plaguing the ICO model.Let’s dive deep into what this new model is all about, how it changes the game and how it works.
What is an IDO? An initial DEX offering, or IDO, is a new and exciting sort of decentralized and permissionless crowdfunding platform that is revolutionizing the cryptocurrency world.
When a project launches an IDO, it indicates it’s launching a coin or token through a decentralized liquidity exchange.
This is a sort of cryptocurrency asset exchange that uses liquidity pools to allow traders to trade tokens such as crypto currencies and stablecoins.
How does an IDO work? An IDO uses a decentralized exchange (DEX) to facilitate the token sale.
A crypto project such as WePlay provides their tokens to the DEX, users or investors commit their funds through the platform, and the DEX completes the final distribution and transfer.These processes are automated and occur via smart contracts on the blockchain.
The project will be listed on the DEX after a whitepaper for the token has been developed.
The tokens are now accessible at a low cost.The project is then funded by users or investors in exchange for these tokens.
The notion is that their costs could increase at the start of the project.As a result, profit is made.
The money raised during the IDO goes into a liquidity pool.WePlay for example aims to provide 80% of the money raised into liquidity pools (multi-chain launch pads).The liquidity pool will be open for trading once the project is live.Investors that purchased the token early can begin trading right away.
Each IDO has its unique set of rules and stages, which are determined by the underlying smart contract and the DEX that runs it.Nonetheless, the majority of IDOs follow a similar process:
A project is accepted to run an IDO on a DEX after a vetting process.
They provide a fixed amount of tokens for a certain price, and users exchange their funds for these tokens.The tokens will be distributed to investors during a token generation event (TGE) later.
There is usually an investor whitelist.To join the list, you may be required to execute marketing chores or simply provide your wallet address.Some of the funds raised will go toward establishing a liquidity pool for the project’s token.The remaining money are distributed to the team.After the TGE, investors can trade the token.
The offered liquidity is usually locked for a set amount of time.The tokens are transferred to the user at the TGE, and the LP is made available for trading.Benefits of an IDO The following are the benefits of an IDO
They eliminate the need for permission and high fees.They deposit funds immediately into the liquidity Pool.IDOs do not require any personal information to join an IDO or start a project.They are usually affordable and secure.Multi-Chain IDOs: An emerging trend It’s worth mentioning that an increasing tendency is for projects to launch their IDOs on various launchpads in order to reach out to more blockchains and investors.
WePlay is a great example of a platform like this.
As an example, a project might perform one IDO on an Ethereum-based platform and another (or several others) on platforms based on Binance Smart Chain, Polygon, Solana, or other networks.
Users and investors can choose where they want to participate as a result of this.
Conclusion The Initial DEX Offering has managed to address the majority of the issues that plagued its earlier version, the ICO.It is fast becoming the best approach to market your coin, NFT, or even cryptocurrency-related ideas.
In the crypto market, IDOs have become a regular financing technique for many new projects.It’s usually safer to participate in a sale through a Decentralized Liquidity Exchange which is why projects like WePlay opt for this approach.
About WePlay Project WePlay offers a Social Network Metaverse where users will not only be able to walk and interact but drive as well as refuel their vehicles, buy wearable NFTs, allow their NFTs from other blockchains to be used as well as interact with all sorts of SocialFi, DeFi, and DAO protocols in a fun and visual way.
On top of that, Users are allowed to mint and release their own NFTs in the WeVerse via WePlay NFTime.
The WeVerse also further gives WePlayers the ability to chat, talk and communicate with each other in a highly secure, encrypted, and decentralized way.
To stand a chance of being whitelisted for WePlay NFTs and getting more information about the NFT projects at large, do well to follow us on Twitter (@WePlayLabs) and join our Discord .
Follow us on our social media platform below:
Official website: https://www.weplay.chat
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Medium: https://medium.com/@weplaylabs.