The creation and sale of digital tokens or coins by a corporation or organization in return for cryptocurrency or fiat cash from investors and the general public are known as a token sale or token offering. Token sales include issuing a brand-new digital asset via a blockchain network like Ethereum and a smart contract.
But with new cryptocurrencies stepping into the flooded market daily, how do you think these crypto projects seek funds for creating and promoting their tokens? This is where popular fundraising approaches in the Web 3.0 metaverse kick in, i.e., IDOs, ICOs, IEOs, etc.
While various platforms still use and promote these fundraising models, an IDO platform is the most commonly adopted approach for fast, secure, and efficient fundraising solutions that crypto projects can access. Securing funds through these models allow projects to put their R&D, marketing, and launch of goods and services into action.
According to yearly analytics, 78% of public token sales occur through the initial dex offering funding model. With the rising demand and adoption of initial dex offering, there is no denying that this fundraising method is only getting better, making way for more trends and predictions about the future of IDO. Let’s go ahead and explore some of them below in detail.
What Initial Dex Offering Is?
Before we explore popular trends and predictions related to the future of initial dex offering and the platforms that promotes this fundraising model, like AdLunam, let’s first explore what an IDO is.
Simply put, IDO is a crowdfunding strategy in which a decentralized stock exchange uses liquidity pools to facilitate crowd sales, allowing traders to simply and quickly purchase new tokens on DEX. Trading pairs of common cryptocurrencies and stablecoins, such as USDT / ETH, comprise liquidity pools.
They enable traders to easily swap between crypto-assets and stable currency in response to market conditions. Furthermore, because the volatility of stablecoins is small, the risk of losing your investment due to severe volatility in the cryptocurrency market is reduced.
What Makes IDO Succesful?
Compared to an ICO, STO, and IEO, the major success elements of the token sale in IDO are the project’s quality and marketing. Under this model, the probability of success itself is considerably higher. Furthermore, marketing is frequently more vital than the startup’s potential, preparedness, and usefulness, as advertising can produce the appearance of all of that.
How Is an IDO DIfferent From ICO, IEO, STO, and ISPO?
Are you still confused about the main differences between IDO, IEO, and ICO, and other fundraising models? When comparing IDO to other fundraising methods such as ICO, IEO, STO, and even ISPO, it’s clear that any fundraising method other than crypto IDO has flaws that make it a secondary alternative. IDO in crypto is the best secure and rapid fundraising alternative for businesses and return solution for investors, especially considering the time, emergence, cost, and fraud possibilities in each.
An ICO, for example, allows firms to raise funding by issuing new cryptocurrencies to investors, and tokens are then published on cryptocurrency exchanges following the ICO. However, using this funding technique requires projects to locate an exchange to list on, which implies there is no vetting process because the projects themselves launch these projects’ tokens. Due to a lack of oversight and accountability, this strategy is also associated with scams and hacks. Other fundraising approaches, too, lack some characteristics like security, accountability, efficiency, and quick fundraising solutions.
Now, because everyone wants a faster, more efficient, and more secure way to fundraise, IDOs serve as a superior fundraising approach that promises all of these things. Given the history of fundraising and project launch, it’s simple to understand how a lack of an effective approach has resulted in many low-quality initiatives. We’ve also seen more unsuccessful companies fail due to fraud than typical, with project founders stealing investors’ money and fleeing.
These disadvantages make it difficult for trustworthy ventures to progress and launch more quickly. They also put investors in the tough position of selecting whether to invest and waiting a long time to determine whether the project was a success or a failure/fraud. On the other hand, investors who use crypto IDO do not have to wait long periods for their favorite tokens to be listed on an exchange.
Instead, the listing is usually done soon once the IDO is finished. As a result, compared to ICOs and other forms of fundraising, the faster approach to funding projects via IDO in crypto allows investors to cash out their capital considerably faster, making it a more trustworthy plan.
Future of IDO: The Trends and Predictions
Considering IDO launchpads like AdLunam’s reliability and efficiency, as compared to other fundraising solutions, the rising demand for an initial dex offering is no surprise. Some trends and predictions about the future of an IDO prompted by its rapid growth, include:
- A Better Replacement to IEO and ICO:
The Initial Dex Offering has evolved to solve the key issues associated with ICOs, STOs, and IEOs. The new token sale approach may become a standard in the cryptocurrency industry due to its decentralization, increased accessibility, lack of fees, and additional commissions.
But only if IDO solves numerous critical issues, like ensuring equal access to the token sale for whales and small investors and protecting against Pump and Dump scams. If these issues are resolved, IDO will swiftly replace IEOs and ICOs.
- Support to Multi-Chain Networks:
Launchpads are changing to handle different blockchain networks as the crypto market fragments. This allows projects to raise funds from a larger pool of investors and allows investors to engage in IDOs on the blockchain network of their choice. IDO launchpads that allow several chains are likely to become more popular in the future.
- Solving Sustainability Problems:
With the cryptocurrency market still in its early stages, sustainability is a huge problem. However, innovative IDO launchpads are responding by incorporating more environmentally friendly methods. This includes lowering user gas fees, creating staking mechanisms to encourage long-term ownership, and investigating more environmentally friendly blockchain networks.
- Greater Emphasis on Community Involvement:
IDOs are all about community involvement; launchpads are evolving to facilitate this. Some IDO launchpads are instituting community-driven decision-making processes in which token holders vote on which projects should be hosted on the IDO platform. Others are putting in place community-focused incentives, such as rewards for bringing new members to the site or staking tokens.
- Improved Regulatory Compliance:
Regulatory compliance is becoming increasingly vital as the crypto sector grows in popularity. By adopting KYC/AML procedures and complying with local rules, launchpads are changing to fulfill these needs. This can provide investors more confidence in participating in IDOs while also assisting launchpads in building closer ties with regulatory organizations.
Finally, there’s no denying that the future of IDO launchpads is bright and full of chances. IDO launchpads are evolving to fit the needs of investors and projects as the market advances.
AdLunam, for example, is one of the smart and innovative IDO launchpads, including a seed pad, an Engage to Earn IDO launchpad with a “Proof of Attention” model, and the basic IDO launchpad service. AdLunam assigns tokens to investors based on their Attention Rank. The launchpad also allows emerging businesses to raise capital for seed and private rounds. As a result, if you’re looking for an IDO launchpad with some extra bonuses, AdLunam is worth considering.
All in all, investors can now make smarter decisions about where to put their capital in the future by remaining updated about developing trends in the area and choosing an IDO platform that adopts these latest and upcoming trends.