Cryptocurrencies have been around for over a decade now, with Bitcoin bursting into the scene in 2008-09 when the real world was facing another economic depression. These virtual currencies have changed how financial operations are perceived as “Trading” can be carried out by anyone, irrespective of their status. As cryptocurrencies assisted in the rise of more applications forming the “Semantic Web.” Entrepreneurs wanted to have a piece of blockchain technology's success, which resulted in many ideas from newbie startups gaining a lot. This blog focuses on one of the aspects that have been helping such new enterprises, namely IDOs, and gives some insights on whether IDO development would rule the crypto world in 2022.
What is an Initial DEX Offering (IDO)?
Initial DEX Offerings (IDOs) are crowdfunding protocols that use decentralized crypto exchanges (DEXs) to list tokens from startup projects. These offerings were applauded as they utilized the shortcomings of the previous crypto crowdfunding models, ICOs and IEOs, which were unregulated and over-regulated, respectively, to their advantage. IDOs offer many exciting benefits for businesses and various end-users as they use decentralized crypto exchanges for listing, trading, and liquidity pools. Also, Initial DEX Offerings have little to no slippage and allow projects to list their native tokens at low costs, which shatters investment barriers for retail investors. Additionally, tokens can be traded instantly, allowing level values to shoot up instantaneously, which benefits enterprises.
Advantages of Initial DEX Offering
IDO token development enables startups to earn funding easily as project vetting is done by communities or smart contracts, unlike their previous counterparts, ICOs and IEOs. This helps in the distribution of wealth to wider entrepreneurial society.
Also, IDO development enables projects to decide to make users stake native tokens on their platforms so that liquidity is conserved and users can gain interest for staked tokens.
Initial DEX Offerings also help users verify their tokens beforehand and track their token activity as they are registered on the public blockchain ledger.
These token offerings additionally help investors trade their tokens as soon as they are initially listed on the IDO platform. Such allowance leads to more trades after token release as no waiting periods are involved.
Can 2022 be Yet Another Boom Year for IDOs in the Crypto World?
Since Initial DEX Offerings debuted in 2019, there have been many successful projects using IDOs as their funding source. Even during the global pandemic, the crypto world grew, and most credits went to IDO token development as new projects materialized in the Web3 world. IDOs were vibrant even during the 2021 NFT boom as many NFT-based platforms used these offerings. 2022 has been a year of ups and downs, although there is no sign of the stoppage of IDO development which makes us think that IDOs can rule yet another year in the crypto world. If you need IDO token development services for your new project, there are a few firms that can help you with the process. Approach one now to have quality services related to IDO development for your new Web3 startup.