Along with the rise of DeFi and DEX, IDO also received great attention from the crypto community. The sale of tokens to the public has increased in recent years. The IDO model is the successor to cryptocurrency fundraising methods such as ICO, STO and IEO, along with Financial Investment Academy Find out information about IDO through quick questions and answers for newcomers to the crypto market!
1. What is an IDO?
There is currently no official definition for IDO. Many in the crypto community believe that this is an acronym for the term Initial DEX Offering – the first token sale on a DEX exchange (DEX here stands for Decentralized Exchange – Decentralized Exchange).
However, it can be any form of token sale, which can be organized by the project itself, the issuer of that token independently, independent of any unit, organization or individual. any individual, whether or not affiliated with the DEX.
2. Who can conduct an IDO?
An IDO is conducted completely independently by a token issuer, so anyone can do this if willing to build a token issuance strategy.
IDO can be performed directly from the project’s own development team on the blockchain platform through transactions from the project’s product, the issuer.
This is an event that is 100% self-organized by each publisher, and is usually conducted offline, within the project’s IT system, or online on the blockchain through untraceable transactions.
3. Who will license the IDO?
Since an IDO can be conducted by anyone, it will therefore be regulated by the authority in the issuer’s country, but this depends on the token issuer itself, and there are no guarantees in advance. .
In the case of Binance DEX, the Binance Chain validator will only vote to list projects that have been discussed and promoted by the community, the listing process will be independent of the proposal and conduct any batch of IDOs.
4. Has Binance or Binance Chain been in contact with any IDOs before?
Haven’t seen this update before.
5. How is an IDO conducted?
This depends entirely on the project team or the token issuer. This is an event that they organize 100% by themselves, and is usually conducted offline, within the project’s IT system, or online on the blockchain through untraceable transactions. No one can interfere. There is no guarantee of success, so participants who want to protect themselves need to do their own research on the project.
6. If this project does IDO, is its token better than others?
Not sure. The implementation of IDO has nothing to do with the quality of the project, because no one will research and evaluate it for you except yourself. Do your own research on the project.
7. How is IDO price determined?
This depends on the project team or the publisher. Each project will have its own logic, whether everyone agrees on it or not, and whether the price they set is a true reflection of their token value. Do your own research on the project.
8. Will the token after IDO be priced higher than the original IDO price?
No one can guarantee this, and most likely no one can know. Do your own research on the project.
9. Will the IDO project in the future conduct an IEO or be listed on Binance or other exchanges?
Not guaranteed. These two aspects are not related. Do your own research on the project.
10. Does the IDO need KYC, or does each participant need to make sure they comply with the law in order to participate in IDO?
This depends on the project team or publisher, personal judgment of each person, and the legal environment in the participating country. Each person may need to seek legal advice before joining an IDO. No one can promise anything in advance. Do your own research on the project.
11. What should I expect to happen with an IDO token?
Any thing. Do your own research on the project.
12. Where is an IDO I should join?
Whenever you want to participate in a project, study the information carefully. If you don’t know it well, don’t buy it. And besides, cultivate knowledge from experienced and successful people in this field to learn and avoid unnecessary mistakes.