The inception of the Initial Coin Offering (ICO) was a blessing in disguise for many crypto startups and projects. This fundraising method helped the crypto industry to attract billions of dollars. Initial DEX Offering (IDO) has soared in popularity among the DeFi (Decentralized Finance) projects in recent years.
This fundraising method allows DeFi projects to create and list their tokens on the Automated Market Makers (AMM) and Decentralized Exchanges (DEXs). If you have a DeFi project and wondering how to launch an IDO, this guide will walk you through all the essential details and considerations before launching. Let’s go through a bit of detail about IDO.
What is Initial DEX Offering (DEX)?
An initial DEX offering (IDO) is a crowdfunding strategy that collects investment funds from established investors in the market. The IDO was designed to address the flaws of the “traditional” ICO crypto crowdfunding model. DEXs are decentralized liquidity exchanges because they interact with an IDO rather than a centralized business. IDO is the newest paradigm for crypto projects looking for investor funding. They do, however, have limitations. DEXs, for example, do not scale as well.
IEOs and ICOs frequently raise more than a billion dollars. We’ve never heard anything like this about DEXs. To create an effective platform, you can seek assistance from an excellent IDO development company. Due to the high learning curve of DeFi platforms, ordinary crypto vendors can sometimes find it complex to get started because they are unfamiliar with how cryptocurrencies work. To efficiently resolve this situation, it would be necessary to invest in DeFi education.
Key Steps to Launch an IDO
Following are some of the critical steps in the launch of IDO:
Create a Business Strategy
Develop a logical business model for the token offering’s release on a DEX. The strategy must outline the issues the project hopes to solve, the funding strategy, the blockchain the project will use, a broad marketing strategy, and how to continue driving the initiative beyond the IDO. You must create a rough sketch of these plans to know how you will proceed.
Develop Marketing Collateral
An IDO launch’s marketing materials must include a website and a white paper. A well-branded, attractive website can significantly increase investor confidence. Buyers who have already rationally invested in the venture can benefit from the ability of an interactive website to trigger their emotional triggers. The website may help the project appear more professional. Many initiatives may find it difficult to establish a brand, particularly without a website.
An excellent white paper improves the experiences of investors through specificity and data. By doing so, the investor gets closer to the end of the pipeline. The white paper contains no physical copy because the goal of a white paper is to educate while selling. Instead, charts, tables, and other visual aids are provided in the whitepaper. The white paper presents data to convince investors that the project is a wise investment.
Select a DEX Launchpad
Check the project requirements of the IDO launchpad and match them with your project. The project will be accepted if it meets the requirements of the platform. StarterDAO has become the number 1 IDO launchpad this year by raising $40 million for projects.
If users do not know about launching their own cryptocurrency, do not worry. Anyone with essential marketing experience and an understanding of technology can create tokens. The crypto ecosystem is filled with many applications which allow users to create tokens within no time.
Token creation is not a difficult task because anyone can do it. The challenging task is to convince investors to invest their money in your project. You can easily list your tokens on the IDO launchpad after a successful token generation event (TGE). Automated Market Maker (AMM) like Sushiswap or PancakeSwap assists in listing tokens.
List Tokens and Raise Funds
The following is a quick description for those interested in starting a project token. The team creates a coin pool. Token pools allow investors to prepay for their tokens. The investors will receive their tokens shortly after the token generation event (TGE), which will take place shortly after the IDO. Rather than fixing the token’s price, the issuer can achieve a price determined by supply and demand by holding an auction. The projects can also encourage users to provide liquidity for a long-term IDO launch. Users receive more project tokens for providing liquidity while the project gains smooth momentum.
IDOs are an excellent way to collect seed funding from investors. Small teams lacking financial resources can raise funds and dominate the ecosystem. However, the investors must research the project, team, and platform before investing. If you have a genuine idea and find a good launchpad, you can succeed in crypto’s wild-west.
Read more interesting articles at organisedeveryday