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Homework Tasks
1).Explain in your personal opinion whether IDO should be done on cryptocurrency.
2)Can IDO have a significant impact on the cryptocurrency world?
3)Explain one example of a token that has been IDO but failed/rug pull.
4)Make a detailed fundamental analysis of 2 tokens that have done IDO, and compare the two tokens. Then give your opinion on the results of your analysis.
5)Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO.
6)Conclusion.
Explain in your personal opinion whether IDO should be done on cryptocurrency.
An initial DEX offering is a new decentralized permission less crowd funding platform. It is a way of fund raising in crypto market. This type of crypto asset exchanges depends on the liquidity pool where traders swap tokens with crypto and stable coins. IDOs are excellent for new project tokens as it offers better and immediate liquidity at every price level due to its mechanisms. From among ICOs and IEOs, IDOs are the most successful offering. In IDO vocal community members are the ones who vet projects and tokens opening new horizons.
As there were issues in ICOs and IEOs, IDO’s significant features such as decentralized nature solves them. IDOs add new possibilities to the market. Entrepreneurs are able to release a blockchain product that goes beyond malicious influencers and eliminating issues regarding human errors by crowdfunding with IDOs. With IDOs coin holder’s coins and token buyer’s private keys are secured in the wallets. Projects don’t have to pay high fees and no need permission form any others in IDO. IDO provides immediate access to trading and liquidity and it provides a secure trading platform. IDOs also support several types of wallets.
Can IDO have a significant impact on the cryptocurrency world?
As discussed above IDO is a method of fund raising via a decentralized liquidity exchange. IDO coin is issued via decentralized exchanges like Uniswap, Bancor or Binance. Binance DEX is the first launched IDO. In normal token offering method as we all know investors buy large number of tokens to low prices and then they resell those tokens by gaining high profits. But in IDO fund raising approach anyone can organize and participate. As IDO tokens are traded immediately the investors will buy and resell at a higher price as soon as during the IDO. Then the token price will increase. It is clear that immediate liquidity is a benefit for the token price. IDO can be carried out offline with the project’s IT system or online in the blockchain via transactions directly from the issuer.
There are uncertainties and instability as it is still in the development stage. Before coming into a permanent decision of will in impact cryptocurrency or not we have to precede a wait and see moment.By considering the factors discussed above we can that there can be an impact on cryptocurrency once it reaches the stability and matures in near future.
Explain one example of a token that has been IDO but failed/rug pull.
What Is a rug pull
Rug pulls usually happen on DEXs as fraud individuals also create tokens and list with DEX and pair with leading cryptocurrencies. Another possible rug pull is that the price raises high within 24 hours to a maximum level to attract traders. After collecting the funds the team will disappear suddenly. All contactable accounts will be deleted.
Example for rug pull
WhaleFarm Token is a big Rug Pull that happened in crypto world. 99% $2.3 Million valuable Tokens Crashed within few hours. They have started project event with a big campaign. Therefore, many of investors have joined with their campaign with big invests. However, unfortunately the team has started to sell all their coins and they have deleted their Twitter page and the official Telegram group to destroy all the evidence.
Now below we can see current price of this token. Below is a screenshot that I have taken from https://www.coingecko.com
Make a detailed fundamental analysis of 2 tokens that have done IDO, and compare the two tokens. Then give your opinion on the results of your analysis.
There are many tokens which have done IDO. We can find them in the coinmarketcap. I have selected two such tokens to analyze.
POLKASTARTER
Polkastarter can be defined as one of the most interesting tokens presently carrying a huge investor base. The market rank is #332. The trading volume is $15,161,529.25. Because of its huge user base the valuation is more than $256 million which can increase in the future. It also uses its credibility and investor base to diversify into other areas.
DXSALE
This project token has over $19 million market cap. It ranks in #2774. The valuation is modest based on the performance. It has taken approaches to many competitors by introducing prevention methods to rug pulls.
In My Opinion,
Both DxSale and Polkastarter tokens have a good ranking and a watch list. There is a huge investor base with both tokens. By analyzing the volume and the marketcap it can be clearly noticed that the tokens will be more worth in the future.
Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO.
Actually, we can use our PC or Mobile to participate with any IDO event. This time, I use my mobile phone to explain every steps.
PANDORA can be a good project in the Decentralized exchanges. Today, I'm going to participate for this Pandora IDO event from Paid Ignition Launchpad
After clicking the link of this Paid Ignition Launchpad, we can create an account on this site.
Now its time to login with registered email and password like the below image.
After login, I can easily connect my wallet through wallet option.
As the final step, I can select Pandora and Join pool. Actually, this project is not supporting for several countries including my country. Therefore, I am unable to explain next step and I hope to demonstrate final step like this.
CONCLUSION
IDOs are a very important type of tokens that traders should be aware of. there can be scam IDOs. It is up to the traders to identify the accurate token. IDOs may have some shortcomings as they are still in the development stage. but hopefully, they will be able to impact cryptocurrency in near future. Thank you Professor @wahyunahrul for giving us knowledge about IDOs while differentiating with other tokens. Thank you so much for reading my post.
Hi @dilchamo, Thanks for taking my class.
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You have completed the given task very well.
You use easy to understand words, good job!!
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Thank you so much professor @wahyunahrul for rectifying my post. This means a lot to me.
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