WHAT IS AN IDO (INITIAL DECENTRALIZED OFFERING)?

An IDO (Initial Decentralized Offering) is a new and exciting way to raise funds for a project through the use of cryptocurrency tokens.

An IDO is a new and exciting type of decentralized and permissionless crowdfunding platform, which is opening up a new way of fundraising in the crypto space. It’s a very different offering from an ICO, which typically is a more centralized, closed off investment round that only allows specific investors to participate.

In other words, an IDO is a decentralized and permissionless way to raise funds in the form of crypto coins and tokens in a crowdfunding event. As one might expect, in contrast to ICOs and IPOs in centralized and permissioned platforms, there are no minimum requirements for teams launching an IDO — especially in regards to documentation requirements. What’s more, an IDO will likely be launched by a team that already has an existing blockchain project that the team wants to continue developing (that’s us!).

An IDO offers you the chance to invest in a venture that excites you. Because of its nature, an IDO is more popular with smaller scale businesses. What’s more is an IDO can be arranged by anyone to raise funds for any purpose. The supporters who buy the tokens are entitled to the underlying, intrinsic value of their investments once the issuer receives the required capital or at token exhaustion.

IDO Benefits

Flexibility in Time and Money

By standardizing the process of tokenization, an IDO provides a better investment opportunity whenever there is a small investment threshold required. The traditional methods of fundraising can be expensive, lengthy and sometimes even arduous. This means that only the larger businesses are able to raise funds. An IDO, on the other hand, is flexible, time efficient and cost-efficient.

Open & Fair for all

IDO solves the problems that exist in the centralized fundraising method. It allows the parties involved to achieve trust. IDOs are a decentralized fundraising method in which investors across the globe can directly buy tokens from a company’s main deal. Moreover, anyone can participate in it. The parties don’t need to rely on any centralized exchange. In other words, the token buyers have full control over managing their assets.

Fast Trading & Immediate Liquidity

Additionally, an IDO utilizes immediate liquidity. Essentially, because token holders can begin trading the token the moment it hits the exchanges, IDO traders get to enjoy immediate liquidity. The UMA fundraising event is a great example of this when the initial token price of $0.26 immediately jumped to around $2. During the fundraiser, investors bought tokens immediately upon the initial offering because they knew they could sell them at a higher price later.

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IDOs are the next step of crypto fundraising. The Initial Dex Offering (IDO) approach has been introduced to address the issues with its predecessor’s ICO, STO, and IEO to an extend. With its decentralized exchange model, where there is no need for permission to organize the fundraising event, it does work to raise funds. Kick start your crypto project by collaborating with our team!

  • Growth through innovation/creativity:
    Rather than be constrained by ideas for new products, services and new markets coming from just a few people, a Thinking Corporation can tap into the employees.
  • Increased profits:
    The corporation will experience an increase in profits due to savings in operating costs as well as sales from new products, services and ventures.
  • Higher business values:
    The link between profits and business value means that the moment a corporation creates a new sustainable level of profit, the business value is adjusted accordingly.
  • Lower staff turnover:
    This, combined with the culture that must exist for innovation and creativity to flourish, means that new employees will be attracted to the organization.

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