![[Beginner Course] Steemit Crypto Academy Season 3 Week 5 Initial Dex Offering (IDO) homework by @rexxalo.png](https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmPHbpCPdtbVAbvcGnEJVKtmG1r5sE6qcyE5f9mT3an6AE/[Beginner%20Course]%20Steemit%20Crypto%20Academy%20Season%203%20Week%205%20%20Initial%20Dex%20Offering%20(IDO)%20homework%20by%20@rexxalo.png)
Thank you Professor @wahyunahrul for this simplified lecture on Initial Dex Offering, Now let us go into the questions for this week, shall we?
This post is based on the following homework tasks:
Explain in your personal opinion whether IDO should be done on cryptocurrency
Can IDO have a significant impact on the cryptocurrency world
Explain one example of a token that has been IDO but failed
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.
Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO
conclusions
- Explain in your personal opinion whether IDO should be done on cryptocurrency.
Introducing this lecture topic from my perspective, IDO is similar to how individuals over here residing in the local areas of Africa develop their towns. They think about launching an infrastructural project in the town, then they gather as a community to garner funds for these projects, ranging from hospital centers and schools to hall centers.
Basically about anything that contributes to the development of the community.
I can draw similarities from this to what IDO is all about. The professor defines Initial Dex Offering as a fundraising event carried out in the crypto community by the community participants to fund and support the creation of a project and is incorporated on a decentralized exchange.
In my opinion, IDO should be done on cryptocurrency because it’s a new and exciting type of crowdfunding platform that opens a new way of raising funds in the crypto community.
IDO is needed for a project that distributes tokens that would eventually be listed on a decentralized exchange and they intend to make it known to the community for better publicity. Since the migration of centralized to decentralized the number of participants has increased, providing the IDO opportunity to be of more benefit.
Another reason why IDO should be done on cryptocurrency is that it presents as a type of crypto asset exchange that is dependent on liquidity pools, an avenue where swap tokens, stable coins, and crypto coins. Based on market conditions, traders can swap them with various stable coins and any other crypto assets. Because of this occurrence, decentralized exchanges platforms facilitate several institutions to launch a token and have access to immediate liquidity for the specified token.
2)Can IDO have a significant impact on the cryptocurrency world?
Yes, I believe IDO can have a significant impact on the cryptocurrency world. Normally, when tokens are offered publicly, private investors buy a huge number of the tokens for a smaller price then resell these tokens to the public gaining huge profit. As the IDO fundraising method was established, tokens needed for start-up no longer needed a centralized exchange and permission to commence the fundraising event. This is a significant aspect in regards to publicizing tokens for fundraising.
3)Explain One example of a token that has been IDO but failed/Rug Pull
Due to the high market capitalization of billions of dollars experienced by the decentralized finance environment, it doesn’t have central negotiators in its financial services. These achievements create the main arena luring hackers to carry out unlawful activities. One of those illegitimate against the law activities frequent on IDO is something termed Rug Pull. Decentralized finance (Defi) platforms are most at risk of this kind of spiteful attack.
We see rug pull to be defined as a sort of malicious influence in the cryptocurrency world where project developers in decentralized finance, desert the project and make away with invested money with bizarre reasons like software issues that need immediate fixing.
Decentralized Finance Rug Pull is an up-to-date type of exit scam where after a successful IDO project, the project owners abandon the project and runs away with the funds. This usually happens when a fraudulent token creator develops a token and lists it on decentralized platforms without official inspection.
Most of the time, these tokens are paired with some leading digital coins like Ethereum, etc, and swapping is encouraged.
After a successful IDO event, to attract customers and raise more funds, these fraudulent people divert these raised funds and withdraws them for personal benefit.
THODEX
Thodex is a good example of rug pulled crypto-related scam. Thodex was a Turkish cryptocurrency in the year 2020 that had about 400,000 users and was accused of pulling off an exit scam.
This cryptocurrency trading platform had been handling daily trades worth millions of dollars, then suddenly said on its website that it would be closed for a few days due to a sale process
Eventually, users who weren’t able to access their money and accounts voiced their concerns about suspected fraud.
Getting our sources from the very reliable Coinmarketcap, Thodex's 24-hour trading volume was $538 million on the last day it was traded. It was alleged that the CEO took about $2 billion of customer funds and fled.
- 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.
cBSB token on BLOCKSWAP NETWORK
Block swap network had a successful IDO where $2.5million was raised for further development of the project and CBSN tokens. According to Coinmarketcap.com, the CBSN token is ranked at #3648 with a 24-hour trading volume of $47,514.08. The current price stands at $0.008736. In the last 24 hours, the block swap network is up by 30.74%. The live market cap is for this block swap network is not available yet.
The maximum supply of the CBSN token is 5,000,000,000 CBSN and the circulating supply is not available. This token is listed on many centralized and decentralized exchanges.
Don-Key token on Don Key Finance
Don-Key, recently, managed to raise a whopping amount of $2.2 million from macro investors. Don-Key Finance also had a successful IDO where about $2.2 million was raised from macro investors to support the token.
According to coinmarketcap.com, the live Don-key price is tagged at $0.1598 accompanied by a 24-hour trading volume of $272,655. The Don-Key token is ranked at #3133. The maximum supply is 100,000,000 DON coins. The live market cap and value of circulating supply is unavailable
Comparative differences between the two tokens:
| Parameters | cBSB token | Don-key token |
|---|---|---|
| Ranking | 3648 | 3133 |
| prices | $0.008736 | $0.1598 |
| Trading volume | $47,514.08 | $272655 |
| Daily % Increase | %30.74 |
My opinion based on the analysis above:
Both Tokens are endowed with high comparative advantages over some other coins. There is a substantial increase in trading volumes and an opportunity for massive investment portfolios for clever investors
There exist other tokens that have had successful IDO And they include:
✌BENQI
✌TeraBlock
✌MakiSwap
5)Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO
POLKAPLAY
Polkaplay is a platform where participants can impeccably create, mint, tokenize and share a lot of activities. It is evolving into the ultimate platform for content creation and NFTs to earn awards.
Due to the plenty of support being poured into Polkaplay, it is set to conduct its IDO on Poolz Finance and Moon starter
Pools is a decentralized cross-chain IDO platform and this is where PolkaPlay would be launching its IDO. Participants stake their POOLZ in the PolkaPlay $POLO IDO to be given a chance of becoming a whitelist winner. The current price is at $0.005500 with the fundraising goal pegged at $297,000. IDO ends in 5 days on August 4th,2021.
The Whitelist and how to join it:
- Step1. Sign up on app.polkaplay.io
- Step2. Go to app. poolz.finance
- Step3. Connect your BSC chain wallet
- Step4. Search for the PolkaPlay tab
- Step5. Then click on the “details” button
- Step6. Then click on the “join whitelist” button
- Step7. Confirm the transaction on metamask
- Step8. Your wallet would be part of the lottery system
Moonstart is considered to be the first multichain IDO launchpad. It empowers innovative projects across all blockchains.
Holders of MNST can stake in the PolkaPlay $POLO IDO to grab a chance of becoming a whitelist winner. The IDO is soon to commence on August 2nd
To Participate:
- Sign up here: https://app.polkaplay.io/
- Join the Discussion: https://t.me/Polkaplay
- Join the Announcement: https://t.me/Polkaplayio
- Follow on Twitter: https://twitter.com/polkaplay
- Join the MS Discussion: https://t.me/moonstarterchat
- Join the MA: https://t.me/Moonstarterann
- Follow the MT: https://twitter.com/moonstarter_off
Conclusions
Conclusively, it is wonderful to realize that IDO is the future of the launching of cryptocurrencies because of its substantial innovations like immediate swapping and low-cost liquidity. Through IDO, required funds are provided for the improvements of proposed protocols and projects. Even though IDO has some limits and rug pulled schemes, constant checks and maintenance would boost the confidence and trust of participants and investors in this impactful event.