CryptoAcademy Season 3 Week 5 | Homework Post for Professor @wahyunahrul | Initial Dex Offering (IDO)

Introduction

Good day everyone,
It is a wonderful time again here in cryptoacademy community. I am Kehinde Micheal and my username is @msquaretwins. I am happy to be submitting my homework post for professor @wahyunahrul on the assignment given in his presentation titled "Initial Dex Offering (IDO)" for season 3 week 5 of beginners course. Thank you professor @wahyunahrul for the detailed but concise lecture on the said topic. Let me go to the main business.

1). Explain in your personal opinion whether IDO should be done on cryptocurrency.

IDO should be done on cryptocurrency. Initial Dex Offering is an event that is done to raise fund for a new project in cryptocurrency. This event is new and it is always done to make the new token known to the public. If this event is not done for new crypto project, it may seem difficult for the organizers to push the token out to the public. Apart from that, the fund raised during this event can also be used by the organizers to enlist the token on the Dex and to do some other things. Another importance of IDO on cryptocurrency is that it gives value the token when it gets attention from the public.

2). Can IDO have a significant impact on the cryptocurrency world?

IDO has a lot of significant impact on cryptocurrency world and its importance can never be overemphasized as it creates a way to get the token across to the public, thereby giving value to the new token. Another significant impact of IDO on cryptocurrency is fast and immediate trading. Those who invest in IDO token by buying it during IDO event can trade with it immediately after the event and this will have a huge impact on cryptocurrency world.

In addition to this, IDO event is opened to many people. So, many people can take advantage of this event because it is transparent. Also with the IDO event, the token gets liquidity as soon as the event is over which make it easy for all investors to get access to their fund and that has a great probability for the token to have good market price. More so, the approve of project is a lot easier with IDO, the community members will be the one to verify the project and this helps the project or token to be listed in due time.

3). Explain one example of a token that has been IDO but failed/rug pull.

One of the the tokens that fail in the IDO process is Refinable Native Token that is known as FINE. This token was scheduled to be launched on Binance smart chain in April this year. The requirement to participate in this IDO is to hold BNB token and connect this BNB token with Binance Smart Chain and then confirm Binance smart chain on Polkastarter App. The initial token for this IDO was to be 500M which would be distributed to people accordingly.

The event failed because the contract was leaked before the launch and as such, there was massive bot manipulation. And many people lost their fund in this event. And because this event did not go according to plan, many people that bought this token said it was a scam.

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

There are so many tokens that have been IDO and were successful. Let's analyze two

CoinBurp (BURP)

The first token I will like to analyze is CoinBurp token which is shorten as BURP. The IDO platform use for this token is Polkastater, which is a decentralized exchange platform. The journey of this IDO event started around march this year, 2021. Users were told to apply to be able to join whitelist. In this whitelist, people would register and undergo verification process. Those that register and are verified would be eligible for IDO which was slated for 26th July 2021. The requirements given to enter Polkastarter whitelist was that every user must hold at least 250 POLs which is Polkastarter's coin. The white list closed on July 22nd 2021 and verification run from 23 to 25th of July. The maximum supply of this token was about 500M and less than 1% of the maximum supply was used for IDO event. The sales price for this token was $0.110. The project raised about 6.65 million dollar with ROI of 1.59x.
The event ended on 26th of July 2021. Let's see the picture below

_{CoinBurp Review}^{Image Source}

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OpenOcean IDO

Another token I want to talk about is OpenOcean native token ($OOE). The announcement of this token was made on May 2021. The IDO platform used was Polkastarter. And for a user to be eligible, he must at least hold 250POLs, that is Polkastarter's coin. With this, every User that met the above criterion was told to do KYC in the Polkastater whitelist. Each user was told to follow OpenOcean and Polkastarter on Twitter, join OpenOcean announcement telegram channel and community telegram. The maximum supply of the token is about 3.8M and 20% were released on Token Generation event and 80% will be release quarterly. The token price was $0.04 per $OOE token with ROI of 7.08×. The event ended on July 12th 2021.

_{OpenOcean Review}^{Image Source}

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Let's quickly compare the two tokens analyzed above.

Comparison Between Coinburp and Openocean Tokens

Analysis	CoinBurp ($BURP)	OpenOcean($OOE)
Ann. Date	Coinburp IDO token was announced in March 2021	OpenOcean announced IDO event in may, 2021.
IDO platform	It was launched on Polkastarter.	Polkastarter platform was also used by openocean.
Max. & IDO supply	Maximum supply of the token is 500M and less than 1% was used for IDO event	Maximum supply of the token is about 3.8M and 20% was used for IDO event.
Token price and ROI	Then sale price for the token was $0.110 and ROI of 1.59x (58.5%)	The token price was $0.04 and ROI of 7.08x (+608%)
End date	The event closed on 26th July 2021	It closed on 12th July, 2021.

From the above analysis we could see that both Coinburp token and OpenOcean token were launched using the same platform, polkastater decentralized exchange. The token price for BURP was $0.110 and that of OOE was $0.04.

My Opinion on the Result of the Analysis

Many people were able to get OOE token because the tokens price was lesser compared to that of BURP and that made the Return on Investment for OOE to be higher than that of BURP. Also, the supply of BURP token for IDO event was too small compared to that of OOE token that make OOE enter many exchange market faster.

5). Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO

Polkaplay Token

Polkaplay token event will start on 29th of July 2021 and will end in August 4, 2021. The fund raising goal for this project is $297,000. The sale price for this token is $0.005. This token will be availabe on Poolz, BSC station, Red kite and Moonstarter. That is, this project will be launched in those four platform.
Let's quickly talk on how to participate in this IDO.

Steps to Participate in Polkaplay IDO

• First go to https://app.polkaplay.io/ and sign up
• After that, go to https://app.poolz.finance/ to connect your wallet (BSC Chain).
• Then search for Polkaplay tab and click on Details
• Then click on the Join Whitelist button and verify this on MetaMask.
  Then your wallet will be part of the lottery system.

Conclusion

IDO event has proven to be one of the best ways to do fund raising for new crypto project. The huge benefit therein is not only for the organizer(s) of the project but also the members of the community who take part in the project. Many tokens have been IDO and are successful and the community members benefited from them as well as the organizers of the projects.

It is important to know that just as we have IDO that are real, there are some outside there that are fake. It therefore very important for anyone who want to participate in any IDO event to make thorough research of the organizers of the project before investing in such project. Additionally, it is also necessary to check how feasible the project is. The project that have good structure, goals or vision and probably strategic way to compete and last in crypto market may be deemed fit to invest in.

Thank you for reading

Written by : @msquaretwins
Cc:- @wahyunahrul