If you are the type of person that has genuine curiosity towards beginning their journey within the world of cryptocurrencies, and want to participate and potentially invest in some projects, or has a project that requires funding, then INITIAL DEX OFFERING (IDO) platforms and launchpads might be just what you are looking for.
The main point of appeal in cryptocurrencies and crypto-based projects for a lot of newcomer investors is due to the fact that they are enabled access to essentially a pool of different projects, all of which attempt to achieve something different and unique within the realm of crypto. No matter what type of aspect of a project has gained your interest within the realm of crypto, it is clear that you will require the services offered by Initial DEX Offering (IDO) launchpads as a means of achieving your goals. However, keep in mind that each Initial DEX Offering (IDO) launchpad has its own niche associated with it and will typically feature some unique mechanism as a means of incentivizing fair funding.
Keep in mind, however, that many IDO Launchpads will require the user to complete a Know Your Customer (KYC) and Anti-money laundering (AML) procedure prior to gaining access to the platform and engaging within the IDOs listed on there by numerous cryptocurrency projects, startups, and developers who want to gain funding for their project.
As such, Initial DEX Offering IDO) Launchpads have been created as a means of helping users achieve their funding goals or engage in a project's funding period where in return for doing so, they gain early access to specific features, or if it's a game, for example, access to unique non-fungible tokens (NFTs) that will initially be released the moment the game goes live. That said, there are a plethora of different options currently available out there, and in light of this fact, this piece is intended to give you an introduction to some of the technicalities which define crypto Initial DEX Offering (IDO) launchpads, as well as some of the ways through which you will be able to find and identify the reliable ones.
Once we go over all of that, we will take you on a deeper dive through our review methodology, alongside a list of our top Initial DEX Offering (IDO) launchpads, so you can engage in projects as quickly and as reliably as possible. Hopefully, by the end, you will have a clear understanding of everything that you need to know regarding the best IDO Launchpads, and you can know what to look for in each option that is available to you.
What is an Initial DEX Offering (IDO)?
An Initial DEX Offering (IDO) is essentially a decentralized as well as the permissionless way through which projects can gain crowdfunding, one that is exclusive to the crypto space. If a project ends up launching through the utilization of an IDO, this, in turn, means that the project is launching a coin or a token through a decentralized liquidity exchange. This is a type of crypto asset exchange, which is highly dependent on liquidity pools, where the traders can essentially swap tokens, and this includes crypto coins as well as stablecoins.
How does an Initial DEX Offering (IDO) Function?
IDOs are essentially seen by many and, in actuality, are a continuation of other cryptocurrency fundraising models, which include initial coin offerings (ICOs), security token offerings (STOs), and initial exchange offerings (IEOs).
The main goal of IDOs is to offer much better as well as immediate liquidity at every price level due to its various mechanics. They are essentially a solid choice for new cryptocurrency projects or any startup really that is keen on launching a token and genuinely requires immediate access to funding.
However, when we compare it to all of the fundraising methods before it, an IDO is considered a much fairer way. A new cryptocurrency project can avoid any pre-mines, which is an issuance system that favors project founders over the community members, for example.
It's important that we go over the history of all of these as a means of truly grasping what IDO’s actually represent. The first Initial Coin Offering (ICO) was essentially known as the Mastercoin ICO. At this point in time, in 2014, Ethereum raised money with a token sale and managed to get 3,700 BTC in the first 12 hours. Now, at that point in time, this was equivalent to $2.3 million.
Then we need to look at the first and initial exchange offering (IEO). This took place on April 17 of 2019 and launched on the Idax, BitFOrex, Bit-Z, as well as the Bit-M exchanges.
In June of 2019, Raven Protocol also made an announcement that it would introduce the first-ever IDO, which would be listed on the Binance DEX.
A DEX is essentially a decentralized exchange, which is a peer-to-peer marketplace where transactions can occur directly between cryptocurrency traders. DEXs are intended to fulfill one of crypto's core responsibilities, which includes fostering financial transactions which aren't really processed through any banks, brokers, or any other intermediary but are direct. There are many popular DEXs out there, many of which are utilized for IDOs.
Why Initial DEX Offerings (IDOs) Became a Requirement
ICOs initially gained a high level of popularity throughout 2017, where they managed to raise an estimated $4.9 billion by the end of the year. Many of the projects tried to solve problems through the utilization of the blockchain, which landed them a high level of attention as well as funding. However, while many of them did have a high level of success, others, in fact, the majority ended up failing. This is a fact that’s hard to avoid, as there are several issues surrounding ICOs.
First, they're centralized, and second, they're vulnerable. There's a lack of privacy for one, and then there's the opportunity for hacks or human errors.
Now, IDOs are essentially decentralized as a point of comparison, and this model is attempting to solve the issues that ICOs were facing at the time while also adding heightened possibilities to the crypto market. Through crowdfunding with IDOs, entrepreneurs are given the opportunity to release blockchain-based products that go beyond malicious third-party influencers and eliminate any issues regarding hackers or any human error.
Furthermore, token buyers, holders, and their coins are instantly secured on their wallets and private keys. This, of course, provides a lot of advantages, ones that we are going to go over now.
When we compare IDOs to initial exchange offerings (IEOs) and initial coin offerings (ICOs), there are many clear advantages that we are able to see right at the very start.
When there is an initial need to raise funds for a project, through the utilization of an initial exchange offering (IEO) and initial coin offering (ICO), the projects will first need to pay exchange fees and then wait for a project to get approved by the exchange, prior to getting listed. On the other hand, you have IDOs, where projects do not actually have to pay high fees and do not really require permission from anyone, as the offering is fully decentralized.
This gives the project an additional benefit as well, as instead of waiting for an exchange to approve the project in question, the vocal community members will typically be the ones that end up vetting projects as well as tokens, and this essentially gives access to smaller projects to enter the industry and get involved with collaborations.
Additionally, we will be using IEOs and ICOs again for this point of comparison; those options involve an initial waiting period. On the other hand, IDOs provide immediate access to liquidity as well as trading. Additionally, IDOs can help streamline users by delivering a secure wallet and trading platform support built into a single interface and is also fully responsible for IDOs to support different types of wallets, which simplifies the user experience.
Unlike initial coin offerings (ICOs), especially throughout the peak of 2017 and 2018, IDOs will typically feature a very low market cap when their public listing happens. This is typically in the form of just a few million, or in most cases, even less than a million. This is because of the vesting periods for almost all token holders, including the team and the seed and private investors, apart from those who participate in the initial DEX offering process.
An IDO process, on the other hand, typically raises the smallest amount of money, and each participant can win an allocation. The total sum typically raised here is rarely over $500,000 USD.
Then there are multi-chain IDOs. There is also a wide range of projects which would launch their IDOs on multiple launchpads as a means of getting more blockchains and a wider range of investors. So, for example, a project would do one IDO on Ethereum, another on The Binance Smart Chain, another on Polkadot, Solana, and so on. This allows them to pick where they want to participate, but there are currently IDO Launchpads that also provide projects with multi-chain access from a single platform.
Another typical part of every single initial DEX offering is the whitelisting process. This is due to the fact that the demand for those token sales is very high, and launchpad platforms can only confirm and allow a limited number of users to actually participate and provide them with a very limited size allocation, which is typically worth a few hundred dollars. This is why every single IDO platform will typically end up needing to go through an extensive whitelisting process as a means of narrowing down the participants to a supported maximum. In order for a user to be eligible towards being whitelisted, they need to perform a variety of different marketing tasks, which will typically include joining the project's telegram, discord, or Twitter community, retweeting and commenting on a project's tweets, and like the project’s social media platforms.
This is intended to create a complete marketing procedure for the IDO that seeks to grow the community exponentially. As such, it is no surprise that we might see a future IDO project collect over a million followers on Twitter and just as many on Telegram groups.
Another shared criteria for a lot of users is that they are required to hold a specific amount of tokens that are native to the Launchpad's platform itself. Some IDO's might even feature two pools, one that is open to everyone and one that is only open to the holders of the native cryptocurrency asset used to power the platform in question.
Now, to make all of this work, many IDOs will typically introduce a rank structure as a means of facilitating a fair system. The first few ranks will typically be based on a lottery, where users that hold a specific amount of the native token get the chance to participate within the IDO, with the later spots, in other words, those who hold the most of the native cryptocurrency token, getting a guaranteed slot to participate within the IDO in question.
Typically, this whitelisting period is split across two rounds. One for those that hold the Launchpad's native tokens and one for the wider public. The second round will typically have the highest amount of competition due to the fact that it is open to anyone. This is why some platforms have slowly moved to other token distribution models, such as the aforementioned guaranteed allocations model.
Guaranteed IDO allocations
In order to provide users with an allocation to an upcoming IDO, most platforms will typically end up requiring their users to hold their own native cryptocurrency tokens to increase the odds related to the participation.
As a means of avoiding lotteries, many platforms have decided to give a guaranteed allocation to users based on the number of tokens they hold. For example, if an IDO has the goal of raising a total of $100,000, and that platform has 1,000 qualifying participants, all of them would receive $100. As a means of incentivizing much larger holders, launchpad platforms will typically have tiers created where the more tokens a user holds, the higher their allocation will be as a result of this. This is why the prices of many tokens belonging to IDO launchpads can increase in value substantially due to the aforementioned system that's in place.
Due to the fact that IDOs are essentially removing all of the vigorous vetting procedures of IEOs, they are essentially providing a lot of projects access to crowdfunded capital, which benefits the entirety of the industry as a result. Due to the fact that everything occurs on-chain, there's a high level of transparency and traceability, where everyone is given the opportunity to verify the token contracts in advance. Additionally, investors do not need to wait for long periods of time in order for them to get the tokens to be listed within an exchange. This is due to the fact that the listing will typically happen immediately after the IDO ends up getting completed, which in turn allows them the flexibility to cash in on their investment quicker than it was with the ICOs. Many of the projects have also become a practice to actually lock up a considerable portion of the crowd-sourced funds as liquidity on the DEX, where the token can start trading. Additionally, even on top of that, many projects will immediately also offer taking programs as a means of incentivizing holders of the tokens.
Investing in IDOs
In order for a user to participate within an IDO, they will need to go through a process, a process which can vary slightly depending on the Launchpad which that specific user has chosen. However, with that in mind, there are specific requirements out there that most of the projects tend to follow, regardless of the launchpad platform chosen.
The wide majority of IDOs will require their investors to end up going through a Know Your Customer (KYC) and Anti-money laundering (AML) procedure prior to allowing them to participate. This is done because of the regulatory framework set in place for cryptocurrencies in the majority of countries. To avoid legislative issues, almost all of the IDO projects will conduct these procedures. This is also the main reason why US citizens will typically, very rarely, be allowed to participate.
Next, the user has to hold a certain number of native cryptocurrency tokens within the platform in order to provide liquidity. Most of the time, this will also serve an additional role of increasing the chances of winning an allocation for a lot of users. In order for a user to be eligible for an allocation, a user needs to be whitelisted first. Alongside the KYC and AML checks, they will need to perform various tasks, including following certain pages on Twitter, retweeting certain posts, and joining specific Telegram groups. Furthermore, for a user to participate within an IDO, they need to interact with the launchpad platform and invest while also receiving their tokens. There are many options out there, with the most widely used cryptocurrency wallets. When the point in time comes for a user to gain an allocation and receive the tokens within their wallet, they would want to start trading them at some point. In order for a user to access an immediate listing, a user is required to familiarize themselves with how decentralized exchanges typically work. Due to the fact that a lot of them share a similar interface, once a user learns how to use one, they should be familiar with using most of them.
Are Initial DEX Offerings (IDOs) Launchpads Legal in Your Location?
At this point in time, you might already be aware of what kind of legal standing cryptocurrencies and decentralized exchanges have within the location in the world you reside in.
Many countries out there have already laid out strict regulatory standpoints in regards to crypto trading and will typically end up restricting the activities of exchanges, which in turn means that IDOs will also be restricted in said countries. For any cryptocurrency traders interested in participating within IDOs, yet located in such countries, doing so will potentially result in some penalties.
With this being the case, it is recommended that the user, prior to engaging with an IDO Launchpad, ensure that trading cryptocurrencies are legal within the geographical location they are located in. For people who live in countries that do indeed allow for the process of trading cryptocurrencies and for exchanges to actually operate, there is a need to verify that the cryptocurrency in question will satisfy any regulatory requirements. Because of the fact that many nations are starting to set up frameworks for their respective exchange markets, it is now more difficult than ever before for many exchanges to run a global business model.
The beauty of Initial DEX Offerings (IDOs) is due to the fact that they can be accessed from anywhere on a global scale, and they have no central entity.
Remember, the IDO Launchpad will typically allow you to make transactions directly from your cryptocurrency wallet to the platform. The other way around, it does not actually store your cryptocurrencies. However, any benefits gained from this Launchpad will need to be converted into FIAT currencies as a means of being withdrawn later on for real-world utility, and in countries where the trader is located, things can become tricky really quickly. Always ensure that as a user, you live in a geographical location that allows all of its citizens to actually engage in cryptocurrency trading activities.
The Efficiency of the Initial DEX Offerings (IDOs) Launchpad Customer Relation Culture
On most of these Launchpads, as a means of getting the project in the eyes of as many people as possible and facilitating the process of marketing, you will notice that one of the requirements in order for a user to get an allocation to an IDO is to share a tweet and join a telegram channel or in rarer cases even a discord channel. This being the case, most of these platforms will have an extremely large community, upwards of 100,000 people or over that amount, which will be extremely helpful. Alongside this, each platform will typically feature a Frequently Asked Questions (FAQ) page. However, there will rarely be a dedicated team to meet any questions or resolve any issues.
With that in mind, the top IDO Launchpads out there will be extremely reputable and, as such, feature a high number of diverse community members. This essentially means that platforms will typically offer multi-language support systems that can help users communicate a lot more quickly and efficiently.
Due to the fast-paced systems found within the cryptocurrency markets, specifically with some IDOs requiring users to stake tokens three hours or less prior to the launch of the IDO, accessing a huge community that responds quickly is essential.
Does the Initial DEX Offering (IDO) Launchpad Offer a Solid User-Experience, and Is It Understandable for Beginners?
Many Initial DEX Offering (IDO) Launchpad options currently available within the cryptocurrency market will typically provide several features that can ensure the overall experience is as streamlined as possible for the end-user, which in turn means that the user can gain easy access to each step involved towards participating within the IDO.
A user's ability to actually access a feature on an Initial DEX Offering (IDO) Launchpad and utilize them properly can play a major role in the overall experience that the user has with using the platform, which is a critical factor in regards to making the experience enjoyable. Users will be required to gauge their experience when using the Initial DEX Offering (IDO) Launchpad tools at their disposal, indicating how easy it is for them to actually use the platform to its maximum potential.
As a means of ensuring that the Initial DEX Offering (IDO) Launchpad experience is as smooth as possible, users need to look at the design elements surrounding the platform, as well as the overall layout of the indicators seen within the platform that enables the navigation process to be quick and efficient.
In most cases, the more features that the Initial DEX Offering (IDO) Launchpad will have on offer, the more complex it will end up being to use, especially for beginner investors who are engaging with an IDO Launchpad for the very first time. Users will, as such, need to ensure that they match up to their experience expectations prior to engaging with the platform by researching what it has on offer prior to making an account. For each newcomer to an Initial DEX Offering (IDO) Launchpad platform, it is advisable that they pick an exchange that has a simple-to-use interface and even has features that aren't too convoluted and do not showcase too much complex information in front of the eyes of the interested participants.
Additionally, the Initial DEX Offering (IDO) Launchpad needs to have a simple outlined ranking system, assuming it utilizes it, and indicate what ranks exist and how many tokens need to be held in order to achieve those ranks alongside the various benefits they provide. Which ranks give users access to the lottery and which ones provide a guaranteed slot also play a major role in the overall experience.
The traders also need to look out for Initial DEX Offering (IDO) Launchpad options out there that are loaded with information about each project and take security very seriously as well. Regardless of the level of experience a user might have, it is always an advisable idea for them to pick an Initial DEX Offering (IDO) Launchpad, which provides a smooth and high-quality experience.
Does the Initial DEX Offering (IDO) Launchpad Support Advanced Information about each IDO?
For users who want to engage in an IDO, this will typically not be their first time investing in a cryptocurrency project.
As such, they will require the platform that they have selected to offer them sufficient information about the project they will invest in. This information will typically be in the form of the access, the cap of tokens, the swap rate, the blockchain network on which the IDO project is being built, as well as its status, if it's completed, active, or upcoming.
Overall, each project should have a lot of information about what its goal is, what kind of utility its token will have, and what kind of level of funding it expects to achieve from the IDO.
It should also give the investors an in-depth look at what benefits they can expect to gain by providing liquidity to the project and engaging with the IDO. All of this information needs to be outlined and shared in a way that makes it easy to read, understand, and incentivize the investors to actually lock up their tokens and stake them or provide liquidity for the project in question.
This means that the most advanced traders out there will typically pick the projects that have the best overall presentation and utility and showcase a lot of promise towards their eventual development.
What About the Security of the Initial DEX Offering (IDO) Launchpad?
Looking at the security of the Launchpad you will be pouring your cryptocurrency funds into is important, to say the least.
Suppose you are going to connect your cryptocurrency wallet and transfer cryptocurrency tokens to a platform. In that case, the platform in question needs to have and maintain the highest level of security and have no history of exploits or hacks. Now, the excellent part about IDO launchpads is that they will typically never hold your tokens directly, and everything occurs from a wallet to a wallet, one where the investors have full control over and have full access to their private keys.
The security precautions that an IDO launchpad takes will also ensure that it is less susceptible to hacks, exploits, or any other kinds of compromises.
Due to the fact that IDO launchpads are decentralized, most of the time, they will be built through the utilization of open-source technology, and what this essentially means is that anyone can audit them.
What Payment Methods Are Available on Initial DEX Offerings (IDOs) Launchpads?
IDO Launchpads will typically require the user to connect to a supported cryptocurrency wallet in order for them to be able to make transactions within it.
The cryptocurrency wallet support will depend on the blockchain networks supported within the Launchpad, as well as the one on top of which the blockchain projects are built.
What this essentially means is that each launchpad offering will have its own supported wallets. The most commonly supported wallets include MetaMask, WalletConnect, and TrustWallet. That said, this is highly dependent on the platform in question, and it can either support a lot more wallets or just a single wallet.
Do Initial DEX Offering (IDO) Launchpads Have a Native Token?
Typically, each Initial DEX Offering (IDO) Launchpad will have its own native cryptocurrency token that is utilized in some way within the platform.
For example, holders of the native cryptocurrency token found within these launchpads will typically be given a tiered structure through which they can participate.
Let's take, for example, a tiered structure where in order for a person to be able to enter the IDO lottery, they need to first own 5000 of the native cryptocurrency tokens of the platform in question. What this essentially means is that without the ownership of 5000 tokens, they will not be able to participate within any IDO. However, let’s imagine now that the platform has a ranking system, where every amount above that one introduces another rank.
An example hierarchy would go like this, 5000 – rank 1, 15,000 – rank 2, and so on upwards to some capped maximum rank of 150,000 tokens or above. The first few ranks will be lottery-based, while the top ranks will typically provide a guaranteed allocation to the holders. This system, in turn, incentivizes users to hold their cryptocurrency tokens as a means of gaining access to the IDO they are interested in within the launchpad platform. There are many IDO launchpad platforms that even provide staking opportunities to put the native cryptocurrency token to work and incentivize users to hold that cryptocurrency token for prolonged periods of time.
Remember that each IDO Launchpad platform will have its own ranking system as well as its own hierarchy. This means that the aforementioned numbers are just an example of what something such as this can and will likely look like. Each platform has developed its own system, some similar to others, while some can be unique in the way through which they function.
This, in turn, means that while each IDO launchpad platform has its native cryptocurrency token, it does not just exist for the sake of being listed but provides actual utility across many of the functionalities and features provided by the platform in question and plays an essential role towards its maintenance as well as functionality.