How To Bring A Product To IDO?

Over the past few years, the ICO procedure has finally lost popularity among investors. In 2022, any self-respecting project seeks to enter the IDO to attract the necessary investments and declare itself to the world. IDO has also become a popular way to attract investment due to the minimum requirements for investors and developers.

IDO is a way to raise funds through a decentralized exchange using liquidity pools. Liquidity pools are a common bag of tokens that are filled with DEX participants so that each user can exchange the asset he needs. With IDO, liquidity pools are filled using smart contracts.

In this article, we will talk in detail about the IDO procedure.  As well as hear the opinions of experts on how to bring your product to IDO and get financial support from the community.

To begin with, let's figure out how IDO works.

IDO takes place in five main stages:

Stage 1: Preparation of the project for IDO: the project team provides potential investors with basic information about the future project. Here the project team provides investors with a White paper, other technical documentation, and project tokenomics.

Stage 2: Submitting an application and checking the project for DEX. The project team provides all the technical information about the project to the platform where the IDO is planned to be. The project goes through several stages of selection, among users and a special group of project experts.

Stage 3: Presale. This stage is necessary to create a primary liquidity pool. A limited number of users are offered the opportunity to buy a token at a reduced price. You must be on the White List to participate in the presale. At the same time, investors receive IOUs for the token, and the digital coins themselves are received already at the IDO stage during the pre-sale. Participation in the pre-sale is a risky undertaking and it is worth taking part in it only if you are completely confident in the project. According to the number of pre-sale participants, the project team roughly understands the level of the marketing promotion of the project.

Stage 4: Public sale of the token. The procedure is carried out on a decentralized exchange and can take place in several stages. The issuer can sell tokens in batches, raising the price after each round. It motivates the investor to enter the project at an earlier stage. The issuer can also go with the flow and arrange an auction, where the price of the token will be based on supply and demand.

Stage 5: Listing of tokens on DEX. One of the main advantages of IDO is the absence of additional requirements for coin listing. Thus, the issuer creates a second investment wave for its token. Listing of tokens on the DEX is a key to understanding the investment capital of the project.

Now let's look at the main advantages of IDO

Simplicity. Any startup or business can raise additional funding with an IDO, and investors can make a profit without additional requirements. Fast and convenient agree?

Instant listing on the exchange. The main advantage of IDO is the quick listing of coins on the exchange. In other procedures, like ICO, many tokens do not live up to the listing. Investors are very disappointed.

Minimum costs. In the IDO procedure, smart contracts are responsible for a large initial investment, which makes the procedure much cheaper. And it makes DEX more comfortable than centralized exchanges.

Availability. An investor does not need to be a millionaire to participate in IDO. Although some projects still set a minimum entry threshold.

Now let's take a look at the best IDO projects for 2021.

Bloktopia is a decentralized metaverse developed on the Polygon blockchain. The game consists of a decentralized virtual reality skyscraper made up of 21 levels. Bloktopia has a return rate of 558x!!!! This is the top-1 IDO project of 2021.

Ethernity Chain project uses the technology of DeFi and merges it with NFTs to create an exclusive pipeline to rare and collectible content. This project was launched on the decentralized fundraising platform Polkastarter and got x272!

NFT game DinoX with Play-to-Earn mechanics also became one of the most successful IDO projects of 2021. The DinoX IDO was launched on DaoMaker and got x44!

What will wait for IDO in the near future?

IDO has become one of the main cryptocurrency trends and there is no doubt that it will continue to develop and attract new projects and investors. However, to remain popular and effective, IDO needs to improve in some important points.

One of the advantages of IDO is the availability and lack of control in a decentralized exchange. This can lead to force majeure and loss of investment infusions. That's why the industry needs control mechanisms to address sudden changes in the price of tokens, as well as a KYC procedure.

One of the heads of the NFT- game “Drunk Robots” project which is going to IDO in April admitted a few important things. IDO has gained popularity thanks to the development of the DeFi sector. However, the procedure has scalability issues. For example, it is difficult for traders from the stock and classic cryptocurrency markets to become IDO participants because of a lack of information and difficult procedures. This is primarily due to the low level of awareness regarding the procedure and potential benefits of participating in the IDO. This also applies to additional activities and their appropriateness.

DeFi users make up only a small fraction of the entire crypto market, which is still a relatively small sector but growing exponentially in size. Therefore, work on the scalability of DeFi and specifically IDO can significantly increase the volume of the industry, which will make it possible to compete with CEX.