Hello everyone here!
It is another great week for as to participate in another lecture session delivered by professor @wahyunahrul on the topic INITIAL DEX OFFERING. It is a great pleasure to me to take part in this task though this is my first time in your lecture session and I perform to the best of my understanding of the course.
In order not to waste much time, I will move ahead to answer the question as it is tasked.
Explain in your personal opinion whether IDO should be done on cryptocurrency.
To start with, from my personal opinion I will suggest Yes for Initial Dex Offering to be introduce on cryptocurrency. The Initial Dex Offering also known as IDO is a newly subjective event that is introduced from a decentralized platform that is not subject to any permission quest and on the motive to generate funds.
This enables tokens to be awarded on this platform to new investors to attract more investors to participate in this project event.
In brief, an IDO can be defined as a project event that is introducing or launching a crypto coin or a token which can easily be converted into liquidity in a form of a decentralized exchange of crypto assets. It is therefore enables investors or traders to be able to make exchange of their crypto assets to easily be converted to cash or money by making exchange in their crypto coins, tokens and stablecoins exclusive. This token has bring about massive public attention due to its merits and how individual users will be entitled to benefit from the project.
It is observe that a pair of tokens can be traded in this project thus for example the event of USDT and ETH, and this is an absolutely liquidity pairing.
Can IDO have a significant impact on the cryptocurrency world?
Yes, it is observed that IDO has significantly impacted positively in the crypto world because of the following reasons:
- The invention of IDO token has come to solve the mistakes and problems of the ICO and IEO coins. The Initial Coin Offering (ICO) due to its centralized nature has faces many challenges in its operation such as theft, third party influence, no room for privacy and also a lot of errors due human behaviors.
However, the IDO is being decentralized and also create measures to curb the challenges of the ICO while developing hope in investors to new possibilities in its operation in the crypto trading market exclusively. For instance, it grantee that traders in tokens and crypto coins are well secured with on their wallets and are provided with keys to enables the privacy and also protect their assets from theft and all criminal activities.
- Asset Liquidity. It observe that IDO has provide a quick access to liquidity trading without any slippage as compare with that of ICO and IEO. The IDO enables users to participate in to develop an open interface which enables newly investors and other streamline users by delivering a well secured wallet and trading platforms.
- Unlike ICO and IEO, before fundraising procedure can go through the project event, an exchange fee is required before when permission is granted before it can be listed, with that of the event of IDO, it is permission less and no fee is involve before it can be approved and listed. Also, due to its decentralized nature, vocal community members has the ability to approved projects and also vet tokens and projects events without waiting for an exchange fee.
Explain one example of a token that has been IDO but failed/rug pull.
The idea of this crypto intervention is to create a pathway to open a forum in finance by developing it to be decentralized. However, it is observed that Decentralized Finance (DeFi) projects have been able to raise amount of over $200 billion through the IDO event. Rug Pull is an illegal activity through which hackers and criminals tries to steal from other users tokens and crypto coins.
In just last year, reporters came up with some generalizations that a maximum of 90% of all the scam activity in the crypto world is a result of Rug Pull. DeFi is a form of a rug pull that is been practice in an instance where investors who on the process leave their project without any necessary traces for their funds and assets, this fraud token creators jump in to consume all his assets through this decentralized platforms without being caught. They simple pair them with the known crypto coins through a system of “Uniswap” to enables an asset exchange to consume people resource and vanished at all means without being caught.
This is the overview of the rug pull fraudulent activity and this however lead me to explain the concept of compounder finance. This is an example of rug pull fraudulent activity in the crypto world. It was empirically observe that the programmer of the compounder finance has been able to successful profit an amount of $10.8 million from people investments. Although I could not figure out the true figures but there was clear verification that their investors log complain that huge amount of Bitcoin, Ether and other many funds were been stolen but this was later recognize after there was a clear audit on the contract of the event.
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.
It is verifiable stated that the raven protocol was the earliest to have undergone IDO which very effective protocol in situation where it was a reliable source of providing efficient technical solutions that enables to provide massive support the Artificial Intelligent and Machine Learning Firms under many corporations. This pioneer protocol was been launched in 2019 and these appears impressive and strange because it was the first and no one could have thought of it.
Also another successful token protocols is the makiSwap protocol. Initial the Maki token was first listed on the Etherium and the Binance smart contract after it was been to undergone a successful IDO and was able to accumulate an amount of $1.4 million to moderate the development of the project. the Maki token has been decentralized and also centralized on the list of many exchange platforms such as Bitlaxy, UniSwap, BitMARKT and some others and has the details of this according to Coinmastercap.com : rank-2991 current market price-$0.100506USD and negligible increases over 17.42% of the price of the token project. It is observed that the maximum supply of the Maki token is averaging one billion and the corresponding circulation supply is unlimited as it is.
From my own opinion
I have observed that individual tokens are more cherish and merit more as compare with the coins. Although relevant information of the Raven protocol is not provided but the Maki token does, from my analysis, there is much good trading volumes in their investments irrespective of the Raven protocol.
Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO.
THE RAGE TOKEN
The Rage Token ($RAGE) is a well design sports protocol on the blockchain for those who fancy sports (not specific). This enable to create a platform to link all Rage Fans together to play on the platform. Players on this platform will able to transfer their funds to enable them play their favorite games on that very instant using the $RAGE.
Conclusion
INITIAL DEX OFFERING (IDO) has an effective, efficient and accountable qualities as compare with that of ICO and IDO and however, it can be concluded that the IDO has a brighter future in the world of cryptocurrencies.
From my research content above, it can be seen that IDO per its nature has a lot of success attributes and innovations and likewise have some mere challenges with regards to Rug Pull schemes and many others.
I am so grateful for participating in the home work task, although I could not find it easy, so I will be very happy for any corrections and flaws committed. Thank You Professor @wahyunahrul!