What is IDO? Is playing IDO really going to win 100%?

IDO is probably not too strange to you in the Crypto market because of the profits it brings to participants. But playing IDO is 100% sure to win? In this article, we will learn about what IDO is and the reasons why IDO has become so popular!

What is IDO?

IDO (or Initial DEX Offering) is a form of fundraising through the offering of tokens on decentralized AMM platforms. IDOs will usually have 2 pools, one for the community, and the other for users holding platform tokens (POLS, DAO, …).

For those of you who are wondering What is AMM?, AMM stands for Automated Market Maker ie automatic market creation, this is a trading method that uses an algorithm to calculate the token price right at the time of purchase. The AMM mechanism has smart contracts that act as intermediaries, the seller puts the assets into the liquidity pool, then the buyer will swap the assets they have with the assets in the pool through smart contracts.

In addition, the currency used for IDOs is also quite diverse, be it USDT, USDC or ETH.

Evaluate advantages and disadvantages of IDO

Advantage

• New projects call for capital easier than other projects IEO on the CEX exchange.
• From IDO, there have been many other methods of raising capital, including: IFO very successful at PancakeSwap.

Defect

• Like other trends, scam projects set up to pump & dump abound.
• Activities such as registering for IDO or buying and selling later (mostly listed in DEX) all depend on gas fee (especially in Ethereum).

Why did IDO become so popular?

For the project to develop, connecting with the community is a must, so how does IDO help at this stage?

Back in 2017 – 2018, tokens were distributed to users through ICOs, IEOs, where users could buy tokens cheaply. Lucky users who buy tokens are always waiting for a pump when they go on the floor to expect a profit of x5 – x10. However, to get such a level of profit requires a huge amount of money to be poured in.

Eg: Konomi IDO with Initial Cap is $200,000. To x2, there must be an injection of $200,000 worth of funds. Similarly, if x4 will be $800,000, and by x10 it will be $2,000,000. However, with the proliferation of AMMs these days, pushing prices up won’t cost that much.

This is a very effective way of Marketing, because the project will be repeated a lot with huge ROI numbers and interest from the community (or maybe terrible). In addition, the project can measure its “hotness” by seeing if the ROI will go as expected.

Besides, the project does not need to pay the cost of the list CEX, a cost that is not cheap. With Uniswap, Sushiswapprojects can list tokens easily and for free.

Therefore, with IDO, both the project and the user get the benefits they want.

Popular IDO Platforms

In early 2021, when these platforms were only known to users, there were only a few projects, such as: Polkastarter, DAO Maker, etc.

But as of April 2021, there have appeared no less than 20 projects working on the IDO Plarform array as shown below.

Several IDO platforms across ecosystems

These projects have almost no differences. Even, many projects were almost created at the time of May 19 adjustment, and until 3-4 months later, there was still no IDO launched.

Factors affecting platform token price when IDO

Along with joining the Whitelist, you can buy platform tokens with a popular incentive: Lock tokens to join a private Pool for token holders.

However, the question here is: How is IDO investment right?

The picture shows a few fundraising platforms and the ATH ROI of the project token. By locking tokens to gain access to the Pool exclusively for token holders, these tokens have had a relatively good ROI increase.

As a pioneer as well as having about 70 IDO projects as of the time of writing:

• POLS currently having ROI x15 from Public Sale price.
• Falconswap although it solves the problem of high transaction fees, as well as slow transaction speed; however, with only 3 IDOs, FSW does not have a good growth rate like the rest of the platforms.
• Knife Maker and Poolz Currently there are 16 SHOs and 8 IDOs with the highest profits x8.5 and x6 respectively.

Thereby, it seems that the project token price will not depend on the outstanding features of the platform but be affected by incentive to lock tokens to join the Special pool and number of projects IDO.

Is IDO a sure bet to win?

According to the ROI statistics of the projects, almost everyone who can buy it at the public price makes a profit, just a little or a lot. In addition to the platform token also increasing in price as mentioned above, many people think that IDO is a “money hand” for everyone. But is that true?

If you have never participated in IDO, you will not know that there must be a Whitelist round to choose the people LUCKY have the opportunity to buy tokens at Public Sale price. It is difficult to give a whitelist win rate, however, according to my experience, as well as surveying a lot of real people, the winning rate is almost very low.

For example: Tidal Finance IDO has 183,221 registrations, but the number of people selected is 200 ⇒ Winning rate is… 0.01%.

If you don’t win the Whitelist, the price of the platform token will also increase, why is it still not a sure bet?

In fact, only if you are the FIRST to buy these tokens at the Public Sale price, or before the first IDO news, there is a high probability of profit. If you enter in the middle or late stage, there is a high probability that the following combo will happen:

• Buy platform tokens for xxx compared to Public Sale and xxxx compared to Private Sale.
• The whitelist is like an AK47.
• BTC dump like flood.
• Several platforms were hacked, rug pull, resulting in tokens and arrays that could be affected.
• Sentiment is weak, given that there are no more IDOs happening on the platform anymore.
• Capital jam.

It all adds up to a stressful chain of events, leading to a token sale. Next, things don’t go as expected: IDO still happens, BTC sideway,… leads to token increase acquired by Fomo. This loop is probably familiar to you, right?

IDO is in the bag

This article is not for the past or present, but for future reference. Specifically, the IDO trend is likely to continue until the end of this year, or maybe beyond when users are still too fond of this form.

To really master the “game” of IDO, in addition to relying on the above factors, you should play a new game where you are in the front position. Those are new fundraising platforms like Samurai, Zeedo,… or even a new ECO system like Solana with Solanium, Solstarter,… instead of old projects like Polkastarter or DAO Maker.

summary

IDO is really an interesting game for players with large capital, and is also a “trump card” to help change the position for brothers with small capital.

So I introduced you to what IDO is and answered the question of whether playing IDO is 100% sure of winning, if you still have any questions or comments, please comment below or join the discussion. join channel Techtipsnreview Insights Chat to discuss and exchange ideas with admins and many other brothers!