IDOs or Initial DEX Offerings are a type of fundraising model conducted on decentralized exchanges. This model works similarly to IEOs, except for the main reason that IDOs are conducted on decentralized exchanges, whereas IEOs are conducted on centralized exchanges.
The IDO crypto fundraising model includes a number of benefits, which include:
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Enhanced Liquidity: IDOs do not utilize a price oracle for drawing the value of tokens as IEOs do. Instead, IDOs utilize the price of an asset using an automatic market maker. This promotes the exchange of smaller coins, which allows the project’s token to liquidate faster.
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Transparent Fundraising: IDOs allow anyone to participate in fundraising, which implies that one doesn’t need to be dependent on traditional ways of investment for token sale. Also, IDOs eliminate the need for a centralized exchange and permission to launch a fundraising event.
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Lower Costs: IDO gas fees are quite low. One only needs to pay it to deploy a new smart contract that controls the liquidity pool and the asset’s token.
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Faster Trading: Once the tokens are issued, IDOs allow immediate trading. This means that prospective investors can buy the tokens once it is launched and resell them at a higher price.
Considering the benefits mentioned above, if you’re looking for a reputed IDO development company, Coin Developer India is your ideal choice. They are backed by years of experience in the blockchain and cryptocurrency industry that can help you develop your IDO project successfully.
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