How IDO works
A DEX or IDO initial offering is the process of issuing tokens representing any type of asset on a decentralized crypto exchange (DEX). IDOs can be created for anything from cryptocurrency or a music album to virtual warships. IDOs offer businesses a tool to engage their communities in the economy while enriching their products and services and enabling them to make smarter business decisions about their assets. If you need to get more useful information in this area, you should read about blockchain technology, ido marketing agency and you will not regret it
How IDO works
With the help of decentralized exchanges (DEX), the implementation of tokens is greatly simplified, the project team issues its tokens on the selected platform, and the exchange is already selling and transferring tokens. Users buy them, thereby financing the project. The main attraction of this promotion method for the developer lies in the automation of the process, on DEX exchanges everything is automated using smart contracts, so there is no need to deal with every sale and purchase transaction.
Here are a few general principles for how IDO works:
From the beginning, the project is tested on the selected DEX, and only after that it can be allowed to conduct IDO, in case of failure of the “exam”, they will not be able to enter the IDO. Then they offer some number of tokens at a fixed price, then buyers block their money and the amount of purchased assets is assigned to them. Distribution of tokens occurs after their generation (TGE).
To purchase, you need to be on the list of verified investors (White paper). Verification requires a crypto wallet address or the completion of tasks specified by the project.
The proceeds from the sale of digital assets are distributed to the project team, minus funds for the liquidity pool.
After the purchase, the tokens can be exchanged when they are unlocked, the blocking of coins can be for several months, or maybe for several years, it still depends on the project.
During the attraction of investments in the project, the tokens are not liquid.
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