How to Participate in an IDO?
What would you give to go back to 2009 and convince your old self to buy a few Bitcoins? No one could have estimated that, 13 years later, this crypto coin, once worth just above zero, would have its value increased to around $60,000. Now, we can only avoid making the same mistake and learn everything possible about the current trends in the crypto world.
One of the crypto-based investment sensations right now is IDOs. This new token offering modality debuted in 2019 when Raven Protocol listed its IDO on Binance DEX. But it was only in 2021 that IDOs gained massive popularity, with the consolidation of decentralized finance and the arrival of several decentralized launchpads.
There is still time to become an early investor in IDOs. To help you in this new venture, we have prepared an in-depth guide to show you all the details about joining an IDO deal. Check it out!
What is IDO?
Initial DEX Offerings or IDOs refer to a fundraising deal for a crypto-based project through decentralized cryptocurrency trading platforms. Unlike other crowdfunding models, the founders have the power to determine the value of their project, and anyone can take part in an IDO, even a novice investor.
In an IDO, the tokens are listed directly on a decentralized exchange (DEX) which lowers the listing costs compared to other token offerings. IDOs tend to sell out quickly, allowing a project to be developed soon after its deal launch, and the investors can sell and trade their tokens immediately.
In essence, any blockchain-based project can launch an IDO. The majority of the projects center around DeFi, metaverse, NFTs, and gaming. Get to know some popular deals available right now:
- Plutonians: a metaverse space strategy game that blends strategy RPG, action shooter, multiplayer PvE, and social games in an alternate reality.
- BattleVerse: a free P2E online game where users can earn money by playing and developing along with the Universe.
- MetagamZ: a metaverse where game creators can build and launch games with Defi features.
How to participate in an IDO?
Every IDO launchpad will have specific steps and requirements for an investor to join an IDO deal. Here you’ll learn the basics using BullPerks as an example.
There are some tasks an investor must complete before joining a deal, including buying tokens and staking them.
- Set up your MetaMask wallet.
- After logging in or creating an account, you must go to Settings > Networks and the BNB Chain. When you create an account in MetaMask, only the Ethereum network is available from the get-go, you need to add the BNB Chain manually. The instructions on how to do that can be found in this article.
- Then, click on Add Token and copy the token address info to create a space for BLP tokens in your wallet.
You can find BNB Chain network connection info here.
- Purchase BLP tokens on PancakeSwap DEX.
- You must select a crypto pair and confirm the swap. Add the contract address to add BLP as an option.
- After the transaction, PancakeSwap will offer you to view your transaction and add BLP to MetaMask. Then, you will be able to check your purchase in your wallet.
- Register on BullStarter and complete the Know Your Customer procedure.
- To ensure the safety of every deal, BullStarter requires that every user completes a KYC process. After your registration, the system will guide you to complete the KYC, and it takes less than 3 minutes!
- Lock your tokens.
Locking or staking the tokens is a means of being eligible to participate in our deals.
- To do so, you must know how many tokens you need to lock for a specific deal. Then, go to the Account menu, click on Lock-in, select the number of tokens and click on Lock. Confirm the transaction on MetaMask.
This step will determine your tier, which will later influence your profits.
Joining a pool
After the preparation steps, you choose a project and participate in an IDO deal.
- Choose a deal.
- On the Deals menu, you can check all the available projects.
- It is essential to learn more about the deals before joining them, and you can do so by reading the articles published on BullPerks’ Medium, where each initiative is described in detail.
- Join the deal.
- After choosing the deal and learning everything about it, you can click on Join Deal.
- To invest BUSD in the deal, you need to approve your MetaMask wallet by pasting its main account address on the Target Network line. Click on Approve, confirm the transaction, then click on Pay.
Congrats! You joined the deal.
How to earn money from IDO?
Investors can get their tokens after they are listed on a decentralized exchange.
Either way, the investor will be receiving returns on their investments, but it is wise to analyze the token performance after listing and then decide which earning method they’ll choose.
After the vesting period, you have access to token distribution according to your tier allocation.
- Open the deal’s details on your Portfolio. You can check all the information about the deal on the Portfolio and click o Claim your vested tokens to redeem your earnings.
- After confirming the transaction in your wallet of choice, you will see the confirmation of the transaction submission with the tokens appearing in your wallet shortly after.