Product 18 Apr, 2024.
With the development of a smoother and more sophisticated financing method known as IDO – Initial DEX Offering, the cryptocurrency sector has expanded to appeal to innovative business individuals throughout the globe. The progressing industry still uses the initial coin offering (ICO) fundraising method, but it has to change due to rising capital misappropriation
and instability in the crowdfunding environment.
That being said, IDO continues to gain momentum in the cryptocurrency industry. This fast-paced crowdfunding secures investors’ funds via its liquidity pool. A liquidity pool is a digital structure for preserving records that houses cryptocurrency locked in a smart contract. This is why DeFi (Decentralized Finance) has shifted its course of action and hooked on a fully-fledged decentralized exchange model – DEX.
Knowing all the necessary ins and outs of centralized and decentralized fundraising strategies is crucial to answering how to launch a token on a DEX.
What is an IDO in Crypto?
We can say Initial DEX Offering is the advanced model of ICO. Unlike ICO, the IDO is a crypto asset (token/coin) that runs on a decentralized exchange grid. While the crypto marketplace grows in popularity daily, you can utilize IDO to raise funds for your crypto-related products and services. The IDO is much better for crowdfunding thanks to its cutting-edge liquidity pools.
The newest and most advanced model of crowding can seamlessly contribute to your crypto projects with many in-built benefits end to end. From an instant token trade system to running without intermediaries, the IDO model is the successor of the former fundraising models involving ICO, IPO, and IEO. In short, it’s the safest and most reliable crowdfunding track system you can acquire out there.
What are Dex Tokens?
DEX enables peer-to-peer cryptocurrency transactions without a mediator. In the DeFi ecosystem, DEX plays a key role in making users’ end-to-end transactions promising. The decentralized ecosystem works independently, free from the authoritative infrastructure, meaning you have absolute control over your tokens/coins and funds, allowing you to trade instantly and directly from your crypto wallets.
In other words, DEX completely binds with smart contracts to ensure the safekeeping of the crypto tokens on all sides across the online presence. Thus, DEX paves the way for a safer crypto trade by tackling the shortcomings of centralized trading.
Initial DEX Offering (IDO) – How It Works
IDO accelerates the token exchange process with a DEX (decentralized exchange) incorporated. With the aid of smart contracts development, these exchanges take place securely and more robustly on the decentralized ledger. However, few verification methods are fused in the initial phase of the exchange process to guarantee maximum security.
The Following Outlines The Work Process For The First DEX Offering:
But here, the main objective is buying and selling tokens at cheaper costs for greater ones.
Read More: Why Invest in Web3 and How to Do It?
Benefits of Launching your own IDO
A decentralized platform is the first thing that attracts the interest of many cryptocurrency traders. This eliminates a centralized authority, giving users a convenient go-to standpoint.
Key Benefits
How to Launch Your First DEX Offering
Strategize – Generating A Failsafe Business Plan
Many businesses have plans or strategies to fast-track and improve growth. However, they mostly fail because their plans don’t make sense. And those who grasp the idea and plan with attention to detail, having the ongoing trends in mind, seize a successful future. In the same way, you need to strategize a problem-solving project along with fund allocation methods.
Positive Marketing To Attract Investors
With a strategy built for the IDO Launch, you may also need positive marketing efforts onboard. The IDO launch needs a website and a whitepaper. Launching the IDO on a visually captivating website will likely attract potential investors. Appealing websites always have a high number of committed users. Thus, it can greatly push the IDO project for mounted funds allocation.
Check Out A DEX Launchpad
IDO launchpad is the decentralized alternative to the ICO platform, which was created to streamline ongoing transactions throughout the cryptocurrency market. If the project can demonstrate that it satisfies the platform’s standards, which usually include safelists and consensus, an IDO will be approved. When you have finished developing the IDO launch tactics, it is time to take your token to an advanced DEX launchpad.
Establish The Digital Currency (Cryptocurrency)
The fourth step implies creating and launching your crypto coin. Of course, launching a cryptocurrency these days isn’t as troubling as it was before. All you need is a tech-savvy mindset with a knack for marketing to make it count – not to mention the process has become pretty much a straight path in this technically advanced atmosphere.
The tools used to create and launch a crypto coin are within reach and, most importantly, easy to use. You can always get technical help from a company specializing in IDO if you’re in doubt.
Token Launch And Fund Rising
Finally, launch the token to instantly begin the process of seeking financial support. Now, this process involves potential investors investing in the tokens beforehand. As a result, the token price may go up if there is a mounting demand, considering the typical economic decree of supply and demand.
Top IDO LaunchPad List:
Solanium
Launched on May 22nd, 2021, it is a decentralized platform on Solana blockchain for fundraising and trading.
Binance Launchpad
It is an initial exchange offering or IEO platform that lets you earn rewards in the form of tokens by fundraising new projects.
Unicrypt
Mainly used by DeFi projects to build community and keep users safe, Unicrypt is a decentralized service provider.
Launchpool
Binance Launchpool is a new product that allows users to form new assets, and through this, users acquire new token rewards.
Unilayer
It is a superstructure over different blockchains, solving different problems about native transitions of data.
Read More: Best Practices for Developing Secure Ethereum Smart Contracts
Is the IDO Model Relevant?
Even though IDO is a decentralized exchange, it is much faster than the old models of centralized crowdfunding. The centralized exchange models have been vulnerable to looming threats and can be easily tricked for personal gain, leaving the stakeholders with nothing behind. With the IDO model, this problem doesn’t exist.
To answer the question of IDO model relevancy: many have already hopped on the decentralized bandwagon to guarantee high sustainability and possible development opportunities, regardless of whether it is a suitable model. Many tend to seize upon this possibility for progress that indicates future expansion.
IDO Vs. ICO Differences
Hopefully, you now have a better understanding of which exchange platform is decentralized and which is centralized. Nevertheless, the IDO model involves a project vetting process, and ICO doesn’t have one. So when it comes to ICO exchange platforms, projects run their sales themselves.
Head-to-head Comparison Of The IDO and ICO Models
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Centralized Ecosystem |
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Doesn’t Include A Vetting Process |
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The Projects handle Funds |
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Smart Contracts Are Run By The Projects |
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No Liquidity Pool |
More: Learn About Our Exceptional DApp Development Services
How to List a Token on Pancake Swap
Once you create your cryptocurrency, you would require a platform such as Pancake Swap to enable coin trade or swape for possible investors to see and indulge. Listing your coin on pancake swap requires you to create a liquidity pool for establishing an instant trade environment.
Here Is What You Need To Do:
Browse Pancake Swap via a Web3 browser such as Metamask or TrustWallet. Utilizing web3 browsers expedites the process seamlessly. Then, list your liquidity pool tokens while using its drop-down menus. That’s it; your token is now swappable on the Pancake Swap without intermediaries.
How to List a Token on Pancake Swap
For listing your ERC20 tokens, UniSwap is one of the best places to start with. That’s because it holds a decentralized liquidity practice on the Ethereum blockchain technology. In addition, it runs smart contracts to ensure safer transactions.
Suppose you have an ERC20 Token and have long wanted to list it on a safe platform for possible ROIs (Return On Investment). Given that UniSwap is a perfect DeFi ecosystem for your token, here is how to launch it on this platform:
Done; the token is listed on UniSwap. With such a seamless process, anyone with technical or non-technical abilities can do so. When the token is listed on the UniSwap, it’s time to find communities to trade or swap.
Read More: 5 Key Blockchain Protocols You Need to Know
Ready to Launch Your IDO with Cubix?
In this post, we covered all the major aspects of how to launch a token on a dex. Among other aspects, we discuss the fact that decentralized ledgers result from the fundraising model, and that means replacing centralized systems in many instances.
In addition, Crypto investors are looking for decentralized platforms, such as IDO models, to increase market liquidity. This is because it is a blockchain-based model that emphasizes digital asset security and empowerment.
Whenever you need experts’ help to launch your IDO, Cubix is the right choice. Cubix’ wide array of DEX development services puts your business on a path that leads to stable, meaningful, and lucrative outcomes. Consult With our IDO Experts Now!
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