Crypto Academy Season 3 Week 5 | Homework Post for Professor@wahyunahrul | Initial Dex Offering:

Hello everyone,
My name is Shaheer Anwar and this is my homework for Crypto Academy Season 3 Week 5 Homework Post for Professor @wahyunahrul (Initial Dex Offering)

Q1: Explain in your personal opinion whether IDO should be done on a cryptocurrency
First, we need to understand what an IDO is:

An IDO is a word that refers to a project launching a coin or launching a token by a decentralized liquidity exchange. It is a type of crypto asset exchange in which a exchanger can change/exchange tokens which are stable coins or it can also include crypto coins For Example USDT/ETH is a liquidity pair.
In 2017 when ICOs and Token Sales were becoming very popular and managing to raise an estimated 4.9 billion $ by the end of 2017. At that time many projects were promising to solve problems using the blockchain. Some of them managed to succeed while a majority of them were failing. It is vastly understood that there are some issues with ICOs that is they are centralized (that most of the account control is with the third party that runs exchange) and vulnerable.
Some other significant weaknesses of ICOs were
• Third-Party Discrimination
• Vulnerability to theft
• Human error
• Lack of Privacy

So to overcome these weaknesses IDOs were invented they are decentralized in nature which means that the account is always under the control of the account owner. So this new project promised on solving issues present with ICOs and on the other hand also adding new possibilities to the crypto market. In IDO entrepreneurs can release a blockchain product in the market by crown funding. So now the product can go past the malicious third-party influencers and that can also eliminate all the problems such as Hackers or Human Error.
Not only this but it can also help Token buyers and holders as Coins are secured in the wallet and can only be accessed by a private key.

Source: https://coinmarketcap.com/alexandria/article/what-is-an-initial-dex-offering-ido-and-why-do-we-need-them#toc-why-do-we-need-idos-

Q2: Can IDO have a significant impact on the cryptocurrency world?
IDOs offerings provide liquidity. Immediate trading and also provides significantly low listing costs which don’t restrict owners. In IDOs there are no intermediaries. IDOs are considered a more open transparent and also a very good way of launching new crypto projects as oppose to the pre-mined ICOs model which was used to give rewards to founders over a sufficient community distribution.
As oppose to ICOs IDOs have a low market cap in public listings. This is because of the vesting period to the private investors and small money is raised from actual IDO so each winner receives a small allocation. This causes demand to be more sustainable and healthy market develop as opposed to In ICOs and IEOs where investors rush to sell upon listings.
On contrary to Centralized Platforms in IDOs there is no need to pay a huge fee or offer tokens to the exchanger. The platform doesn’t require approval for the launching of an IDO. IDOs have control over all parameters and grant sales in vision to project rather than the commercial requirement of crown funding.
Further, a buyer has all control over the funds at all-time secured in their wallet and protected with key and not having to transfer to any centralized platform.

Q3: Explain one example of a token that has been IDO but failed/rug pull.
First, we need to understand what the term rug pull means:
A rug pull is an act of stealung and fraud in which a developer in crypto world make a project and then abunden the project and run away with money from the investors.

Defi-based project Turtle Dex was said to be rug pulled with the withdrawal of 9000 BND which was worth 2.4 million $ which they managed to raise in five-day sales.
The 9000 BND was raised by them on 15 March by TTDX token. It had promised investors and also yield farmers high returns in the future.

Q4: 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.

DeFi City:
It is a virtual world that makes yielding simple for farming as it allows everyone to be able to visualize and manage their farms and also can track their key performance yield and farming indicators from a single, visually appealing and easy to use and simple in-game dashboard.

$BURP Token Details:
It is a token which features both staking and NFT rewards, with both governance and massive advantages side by side for the ecosystem.

Coin Burp:
Coin burp is a cryptocurrency token that was generated on the Etherium blockchain. The total supply of CoinBURP ever recorded 500,000 million tokens and now the current supply of BURP in circulation is 23.06 million tokens. Now the current CoinBURP price is 0.411$ on 26 July 2021 and since then it has fallen -24.7% from its price.
CoinBURP share in the market is 0% and market capitalization is 3.35 million.
CoinBURP 24 hour trading volume was 2.01 million $. CoinBURP is trading at 2 exchangers and 4 markets and the most active is KuCoin

DeFiCity:
DeFiCity is a cryptocurrency token that was generated on the binance blockchain. The total Supply of DeFiCity that was ever recorded was 99.98 million Tokens.
So the current DeFiCity price is 0.0742$ All-time high price for DeFiCity reached 0.0742$ on 20 July 2021 and since then had fallen 0.00% from its highest price.
DeFiCity share in the entire cryptocurrency market is 0.00% with a capitalization of 811.07 Thousand $

Q5: Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO.

Source: https://medium.com/polkaplay/polkaplay-bounty-campaign-2000-in-polo-is-up-for-grab-1b2804625363

PolkaPlay is the easiest way by which we can create sell and collect NFTs.It provides its users with a platform to create short videos post images and here users can also play games to earn.

o Sign up on app.polkaplay.io
o Join the Polkaplay Telegram
o Follow Polkaplay on Twitter
o Join the BSC station Telegram
o Follow BSC station on Twitter
o Like and retweet the campaign tweet
o Tag 3 friends and share the link in the white list
o Fill the form and submit

Conclusion:
In the end I would like to conclude that IDOs offer more cost effective non-custodial and fast token listing The IDOs also offer quick liquidity instant trading on a large set of De-centralized platform with a very vast user volume

Special mention to
@wahyunahrul

#wahyunahrul-s3week5 #cryptoacademy #cryptocurrency #ido #steemit #steemexclusive #