IDO Is an Initial Dex Offering, Here's the Explanation!

There are various cryptocurrency terms that many novice crypto traders or investors may not know, one of which is IDO.

This time, VCGamers will discuss IDO, namely Initial Dex Offering, a term that is often found when working in the cryptocurrency world.

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IDO definition

The definition of IDO is — Illustration of Initial Dex Offering. Source: YouHodler

The Initial Dex Offering is a decentralized crowdfunding platform and it is a new way to raise funds in the crypto industry.

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Usually, this fundraising applies to tokens that are representative of all types of assets in a decentralized exchange or DEX.

When a project launches tokens or coins via decentralized liquidity transactions, there will be an IDO strategy.

This strategy is a type of crypto asset transaction that depends on various liquidity when traders can exchange tokens, namely stablecoins and crypto assets. USDT/ETH is an example of a liquidity pair.

IDO is one such venture to raise crypto funds. This strategy is also similar to other strategies, namely initial exchange offerings or IEOs, security token offerings or STOs, and initial coin offerings or ICOs.

So, IDO is a strategy for new projects looking to release tokens and raise funds relatively quickly.

Also Read: What Is WD in a Crypto Context? Here's the Explanation!

Advantages of Initial Dex Offering

IDO advantage — Illustration of Initial Dex Offering. Source: Chain Debrief

There are various benefits available through implementing an IDO. Following are some of the main advantages of Initial Dex Offering.

First, it is easy to get funds. Initial dex offerings can provide projects with access to crowdsourced capital.

Second, there is greater flexibility. Therefore, investors will not wait too long to be registered on the crypto exchange.

This process occurs after the initial dex offering is complete and this allows investors to gain flexibility so they can cash out their investment more quickly.

Furthermore, there is transparency because activities can be tracked easily by users. This happens because everything happens on-chain.

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Crypto IDO Stages

Initial Dex Offering Stage. Source: André François McKenzie via Unsplash

Initial Dex Offering is a fundraising method released through a decentralized exchange or DEX.

The difference between an IDO and an IEO is that an IDO does not require an exchange license. Outspoken community members review projects and tokens which are then released through IDOs listed on the DEX.

According to Gemini, Initial Dex Offering has three steps that always occur. The following is an explanation of the Initial Dex Offering steps.

First, there will be decentralized consent. Fundraising projects will be included in the DEX launch pad and there will be several staking requirements and whitepapers. If it fulfills the platform request, then the implementation of IDO is permitted.

Next, there is the public sale. A project will create a pool of tokens and users can buy IOU from those tokens. So, investors will pay for the tokens but will receive them at the Token Generation Event or TGE.

After the IDO is successfully completed and the TGE takes place, the token will be listed for trading on the DEX. Because these transactions are decentralized and permissionless, recording usually requires no fees or approvals.

Lastly are the liquidity incentives set to initiate use. Users can earn tokens by doing various things such as providing liquidity.

Thus the discussion regarding the initial dex offering.

VCGamers has released a crypto asset under the name $VCG Token which operates on the Ethereum network (ERC 20) and Binance Smart Chain (BEP 20).

$VCG Tokens has been officially registered at Bappebti or the Commodity Futures Trading Supervisory Agency and the Indonesian Ministry of Trade as crypto assets traded on the physical crypto asset market.

Currently, $VCG Token has been listed on various CEXs or Centralized Exchanges and DEXs or Decentralized Exchanges namely Pancakeswap, Uniswap, BitMart and Indodax.

Not only that, $VCG Token is the official currency in the first metaverse in Indonesia, namely RansVerse with the collaboration of VCGamers, RANS Entertainment, Shinta VR, and UpBanx.

Follow along Update $VCG Token only in VC News.