ICO/IDO
Let's go through the following points:
• Meaning
• An example of a sale on Binance
• An example of a sale on CoinList
Exchanges without KYC here 👉 discord.gg/sckfUHxvxD
IDO is the Initial DEX Offering, i.e. the company's first public presentation of its tokens. The tokens themselves are usually used for internal processes in the blockchain network that the company has created. Also, the peculiarity of this version of the token launch is that after the IDO itself, the tokens receive immediate liquidity and the ability to trade them, and moreover - a cheaper price than the one at which they will be available after listing on exchanges and exchanges.
ICO is an Initial Coin Offering, another type of presentation by a company of its cryptocurrency in order to raise funds for the development of an application / network, etc. It differs from IDO in that it often does not offer to immediately sell the coins on an exchange or exchange, but only allows investors to hold these tokens in their wallets, with no further promises about where the coin can be listed.
All these and other types of initial presentations of tokens to users are usually held on so-called launchpads, that is, platforms created specifically to help new projects launch their token.
The list and rating of launchpads can be found on many sites, here are some of them for example:
1. https://cryptorank.io/
2. https://ninjapromo.io/top-10-ido-launchpads
You should notice that tokens are launched on different blockchains, and not always the same launchpad will support all networks.
For example, BSCPad (as you can guess from the name) supports the Binance Smart Chain (BSC) network, and TRONPad supports TRON, respectively.
Usually, before the ICO or IDO, the team starts the whitelisting process, that is, the selection of those who will be lucky enough to be among the first to receive project tokens. Among the popular resources for whitelists are Gleam and Google Forms, and many launchpads offer their own whitelists, which are created on the platforms themselves.
To participate in the whitelist and get the right to buy a token, you are usually asked to provide your email address and wallet, as well as to complete tasks such as following the project's social networks.
After some time, the team announces the whitelist finalists and gives them the opportunity to redeem the token allocation, i.e. a certain amount (USD) in token equivalent.
When the ICO and IDO pass, the coin is listed on decentralized exchanges like PancakeSwap/Uniswap, or exchanges like Binance/Huobi/OKX, etc. Then everyone can buy the token there, but at a (often) higher price than those who participated in the ICO/IDO.
For example, consider a sale on Coinlist - if you get the opportunity to buy tokens for an allocation of $300 somewhere in the summer of last year on a bullrun, then it could turn into a 10x larger amount, i.e. $3000, or even 50x, i.e. $15000. Of course, there were not so profitable sales, but they almost never went into the "minus".
Example of sale on Binance
Sales on the Binance exchange are as simplified as possible, so that you do not have to make any unnecessary movements and press unnecessary buttons. For example, the recent sale of Hooked
On the sale page, it is indicated that the subscription period is now active, that is, you can log into your account and choose the desired contribution amount, which will then be converted into HOOK tokens. Contributions can be made to BNB, according to the limits specified for each sale.
If we turn the page below, we can see how many tokens were deposited and how many participants.
At the bottom of the page, we can see the details of the tokenomics of the project.
This gives us information about the hard cap, that is, the maximum possible amount that is allocated for this sale, as well as the initial volume in circulation (10% of the total in this case), the price of the public sale, the maximum allocation per user, lockup (or its absence), type of token and time of issue.
So, all you need to participate in this sale is to log in to Binance and choose the desired amount of BNB, which will later be converted into tokens that are offered for sale.
More information on Hooked: https://icodrops.com/hooked/
Despite the fact that this platform has recently not shown such Xs as during the bullrun, we will consider one of the projects on it for example - Efinity.
The main page always has basic information about the time of the sale, after which we are offered to register. Registration does not require special skills, but requires document verification according to the KYC (know your customer) procedure.
Also, a separate part was passing a quiz (test) to separate bots and people who register accounts with someone else's data (that is, this test required more time to be allocated to registration for the sale, and not everyone wanted to spend so much time).
Also on the sale page there is information about tokenomics and other features.
According to this table, we can see that registration lasted from June 2 to June 18, and the sale itself - on June 24. The price per token was $0.20, and the lockup (that is, the period after which tokens will be issued to you) ended on August 4, after which tokens were issued linearly (proportionally) for 9 months. A maximum of $500 worth of tokens could be purchased, a minimum of $100.
Next, the most interesting thing is the purchase process itself. It is worth noting that the chance that you will be allowed to participate and buy tokens on CoinList has become very small over time, but if you are still lucky, you would get a queue number (for example, 15245) and wait for your turn. That is, until those people who had a smaller number (1, 2, ..., 15244) buy.
If you got into the sale, you could choose how much to deposit, pay and wait for your tokens. Payment is made via USDT/USDC usually, which can be opened on CoinList from other exchanges or wallets.
At the time of listing, this token did not show any special Xs, but in a few days the price rose to $1.60, and at its peak it showed $2.28, that is, from your $500 you could earn a maximum of $5700 .
