The new popular investment asset known to mankind is cryptocurrency. The invasion of cryptocurrency is so rapid that many countries now feel that they should legalize cryptocurrency. While many have already done so.
Because of this technological advancement, the paths in blockchain technology are now opening for new startups and businesses. All this has attracted a mass audience towards itself and makes the learning process intriguing.
If there are startups they will be fundraising & investment opportunities. Consequently, between all this, we are getting serious attention for a relatively new type of fundraising tool. One of the popular ones amongst them is IDO launchpads.
If you are among those who want to step into this ambitious entrepreneur journey and want to be a part of the blockchain world. Then, you should consider investing in IDOs.
But, what are IDOs, what are IDO launchpads, and how will they benefit you?
So, let’s start right away and put a full stop to all the conflicting questions that conquer your head.
- What is IDO?
- 1. What is an IDO Launchpad?
- 2. How does an IDO Launchpad Work?
- 3. How is a Launchpad Supportive of the new Projects?
- 4. Popular Cryptocurrency Development Launchpads
- 5. What are the Perks of IDO Launchpads?
- 6. How to develop an IDO Launchpad?
- 7. Development Companies for IDO Launchpad
- 8. What are the Disadvantages of IDO Launchpads?
What is IDO?
Knowing what an IDO is, is necessary before moving any further with the conversation. IDO stands for Initial Decentralized Exchange Offering.
IDO or Initial DEX Offering is a crowdfunding method that helps new cryptocurrency projects raise funds from the public at large.
Here, the growth of the funds happens by releasing an IDO token or a coin in the Decentralized liquidity exchange platform (DEX).
Now, these IDO tokens are the assets that the new project gives in exchange for the funds it raises. It’s something like a share or a stock if I compare it to the Stock Market. These assets have a definite price that increases and decreases once it gets listed on the DEX(this was a little out of context but it was worth a mention here).
Though it is very efficient & attractive, IDO is not the only option for you if you want to invest in an early crypto project. Because there are many other crowdfunding models like the Initial Coin Offering, Initial Exchange Offering, Security Token Offering, Initial Farming Offering, and many more.
However, IDO is something that is the most preferred model which is beneficial in liquidating the Token in a decentralized way.
1. What is an IDO Launchpad?
With a basic understanding of what IDOs are, we can continue our discussion on our topic in consideration i.e. IDO Launchpads.
In simple terms,
IDO Launchpads are Decentralized crowdfunding platforms that host New Cryptocurrency projects to raise funds where investors can directly (without an intermediary) invest in such projects
Or if you have properly understood IDOs then IDO Launchpads are platforms that launch IDO. Hope this in itself is quite explanatory. If you have any doubts here, do let me know in the comments section.
Just to add here similar to IDO there are Centralized Coin offering i.e. Initial Exchange Offerings (IEOs). Some of the renowned names of Exchanges that offer IEOs are:
IEO have stricter norms & procedure when it comes to showcasing and listing new cryptocurrency projects.
2. How does an IDO Launchpad Work?
With the help of a Decentralized Exchange (DEX), the project facilitates its token sales (IDO).
The DEX (IDO launchpad) gets the token of the new crypto project, the users commit their funds through this platform. DEX is also responsible for the final distribution and transfer of the fund. Not to mention all these processes are automated and occur through smart contracts on the blockchain.
Though the rules and stages of any IDO are dependent on the DEX on which they are running, the common methods that every IDO follows include-
- Vetting process: Most DEXs follow a strict vetting process before they are listed. This is because a project must be fair, transparent, and of course not a scam.
- Once the vetting process is complete, the IDO runs on a DEX. Here they offer a supply of tokens at a fixed price, and the users lock their funds to get returns. However, the investors receive their token at a later stage, that is during the Token Generation Event.
- There is a whitelist of the investors. If you wish to be a part of this list, then you either have to accomplish the marketing tasks including providing your wallet address.
- Sometimes a part of the funds that are raised is used to create the liquidity pool. Whereas, the remaining funds are reserved for the team.
Only after the Token Generation Event is complete, the investors can trade their tokens. In other words, we can say that their liquidity is in the lock for a certain time.
- At the Token Generation Event, the DEX has to give the tokens that they hold to the user, and after that, the Liquidity Pool opens up for trading.
3. How is a Launchpad Supportive of the new Projects?
An IDO launchpad is nothing but a decentralized platform where you can host the projects as well as list all these IDO projects. The investing done in these budding projects or startups by the investors is through the purchase of IDO tokens.
Whether you are a user or an investor, you can swap the IDO tokens in this decentralized environment. Here, you get the chance to work with stable coins and cryptocurrencies.
IDO Launchpads make sure that:
- The details regarding a future project are complete in all respect before launch i.e. Vetting process.
- Each project is highlighted and marketed properly
- Subscription of the project is seamless
- Allocation of the project is effortless
An IDO launchpad is often a combination of certain specific blockchains, or in some cases multiple blockchains as well. Here, are a few examples of the most common blockchains that the IDO launchpads use for the development process:
4. Popular Cryptocurrency Development Launchpads
The cryptocurrency industry consists of many launchpads with their own features and benefits. Here, we have the popular ones:
The BSC pad is the first IDO launchpad Development on Binance Smart Chain (BSC). Due to its working with both BSC and Binance chain together, we can avail few benefits. It includes the low transaction fee and high throughput to the users. The best part about BSC Pad is that it is the blockchain network that people prefer next to Ethereum.
It is also an IDO launchpad that is built on the Polkadot blockchain and it supports the concept of interoperability. That is all about it. The Polkastarter can host a variety of blockchains on a single platform.
Another trustworthy IDO launchpad is Redkite. It is also built on the Polkadot blockchain. It is a multichain decentralized IDO launchpad that offers you rich features. The multi-chain flexibility and integrated vesting schedule that it consists of, are what makes it unique from the remaining launchpads that we have in the market.
It is a little different IDO launchpad that is built on the Solana blockchain. This launchpad offers you complete security on its platform. It also offers you a fair system of allocation to the users during the IDO.
Card starter is another popular IDO launchpad in the market that runs on the Cardano blockchain. It offers you different features like- auto-lock liquidity, authenticated listing process, insurance fund, and tokenless funding.
All these features make it popular among users. The launchpad is known for its completely secure network for the projects as well as for the investors.
Other than the IDO launchpads that we saw, there are many other launchpads that people use. For example, Trustpad, secure pad, DAO marker, BSC starter, and others.
For information purposes, Centralized launchpads also offer Initial offerings. They are called Initial Exchange offerings as the projects are listed with exchanges. Some of the popular names in this arena are:
5. What are the Perks of IDO Launchpads?
When you start using the IDO launchpads you receive several benefits and opportunities with it. I will write about the benefits of both Projects and the Investor’s side.
Here, are some of the major benefits that you will receive from the Initial DEX Offering launchpads (as a Project Developer):
A. Opportunity in Investment
Undoubtedly, an IDO launchpad is a platform in the blockchain space that can open up the gate for many opportunities for your new project.
It creates a stage for you, and through this, investors can invest in your project. You do not have to approach each investor as the IDO Launchpad takes care of that.
B. Opportunity in Growth
Getting funds is essential for any business, and marketing it properly forms the foundation for it.
In any crypto project that you come up with, the project must get the spotlight. And this is what the IDO launchpads do. They increase the visibility of the projects, and soon it gets popular which helps in its growth.
The most vital reason for the startups to opt for Initial DEX Offering is the free liquidity. Because the launch of the tokens occurs on a decentralized platform, it then provides you with greater liquidity. With the help of the automated liquidity pools, the users can invest in these easily and generate better yields.
Benefits for Investors
Launchpads ensure that the projects which are listed fulfill certain basic criteria before listing. Though I am skeptical about the quality testing of projects at many IDO platforms that exist today compared to the Centralized Exchanges. Accordingly, please sure that you research and use only reliable IDO Launchpads.
Through launchpads, the users can get early investment on their crypto project, and receive a chance for passive income.
6. How to develop an IDO Launchpad?
There are two methods through which you can develop IDO launchpads:
- The first includes the development of the frontend and backend from scratch and;
- The second is called the Whitelabel solutions. They are basically the replicas of the best IDO launchpad platforms.
The previous one is when you develop your own IDO launchpad with your development team. This method is often expensive as everything is customized from the beginning.
Talking about Whitelabel solutions, the cloned scripts of the launchpads have the same features as the main platform consists of but in a small version. You can say that it is a prototype. You can customize the launchpads and add new features to them or add new features as the update to the launchpads. These are solutions that are easy to execute and bring to the market.
7. Development Companies for IDO Launchpad
To your surprise, eventually, we have many developers out there who are ready with IDO Launchpad clones in the market. They have great deals that offer affordable ready-made solutions for any crypto or blockchain platform. Following are some of the IDO Development Companies in this industry:
They consist of a developer who has experience in providing expert solutions for all the IDO launchpad problems. They also provide a wide range of clone scripts from BSC pad and Polkastarter. There are many Blockchain-based services that they have for the users.
Blockchain App Factory
The Blockchain App Factory is one of the Pioneers in this field of IDO launchpads. The developers they have are the most experienced in the blockchain industry. The services that they offer, all revolve around timely blockchain-based services.
It is a company that has had professional developers in the IDO launchpad field for a long time. They have their expertise in IDO token development, marketing, and IDO launchpad development.
It is a startup consisting of young talent. The skilled developers who are good at delivering IDO and ICO launchpads are a part of Turnkey Town. They too provide blockchain services.
IDO Launchpads also come up with a variety of disadvantages that we are about to discuss.
8. What are the Disadvantages of IDO Launchpads?
Nothing is always positive. And as in the case of IDO Launchpads, some of their strengths pave the path for some of their limitations. The main cause of all these problems revolves around the decentralized and anonymous nature of the IDO. Here are the limitations that you might encounter.
1. No KYC or AML
Decentralized Exchanges that are used for IDOs have limited KYC (Know Your Customer) and AML (Anti-Money Laundering) norms. An investor of a project is under complete protection only if the proper checks are complete.
As I mentioned earlier, this is not the most comfortable part of the IDO Launchpads. Limited KYC & AML norms do pose a threat to the security of investors’ funds.
2. Less Due Diligence in Projects
Not only are the regulations related to KYC/ AML limited but there is limited due diligence of the projects too. Though, this does not happen with all the IDO Launchpads.
On a number of occasions, certain DEXs have failed to conduct proper due diligence on the projects which has resulted in losses to investors in the past.
You should only invest through launchpads that hire independent third-party auditors to certify the projects before listing.
Initial DEX Offering provides you with an ideal environment for crowdfunding for crypto projects. Accordingly, developers of the projects know the importance of an IDO launchpad.
IDO Launchpads are decentralized ways to raise funds and help both investors and developers to achieve their respective goals. Though IDO launchpads have certain disadvantages as they are still evolving. However, it is quite evident that with the passage of time, they will become highly secured investment and fundraising tools.