Why Invest in an Initial DEX Offering (IDO)?

The methodology for raising money to create new technology is constantly evolving. Initial Dex Offerings or IDOs forward this evolution by presenting a new way for startups to gain financing, while allowing an average investor to fund a project usually restricted to venture capitalists, or private financial institutions. 

IDOs allow the projects to build a community and engage users, giving entrepreneurs the power to establish requirements and determine which investors should be whitelisted for investment. 

Let’s dive deeper into the IDOs’ world, and learn how it benefits both investors and startups, and why it’s a good idea for you to start investing in them. 

What is Initial Dex Offering?

When an initiative decides to launch its token through a Decentralized Exchange in order to aggregate funding for the project, that process is called Initial Dex Offering. 

Compared to Initial Coin Offerings (ICOs) and Initial Exchange Offerings (IEOs), IDOs offer more advantages to entrepreneurs: 

  • Its immediate liquidity allows tokens trades to occur almost instantly and provides better results and lower price oscillations.
  • It is fairer to launch. More projects receive financing as IDOs allow novice and average investors to participate, not only VCs. 
  • It offers lower fees and more straightforward solutions, allowing projects to focus more on developing their initiatives and less on fundraising.

Some DEXs even assist startups in engaging their investors by limiting the first launch to a small number of whitelisted wallets. By doing this, the projects can then control the requirements for whitelisting, such as answering quizzes or sharing the community posts on social media.

This approach also benefits the investors, as the platform encourages them to learn more and be aware of the projects they are about to fund. 

Why invest in IDOs

IDOs are a method that enables investors to finance new ventures aspiring to innovate within the crypto world. You might be investing in the next great thing if the projects turn out to be a promising and profitable endeavor.

Here are the main reasons why you should start investing in IDOs:

  • It has instantaneous trading. Because tokens are listed instantly, investors can trade their investments after a short time.

  • It offers a more equitable launch. In other token offerings, projects often reserve some allocation to private investors. IDOs, on the other hand, qualify nearly anyone to invest through launchpads.

Initial Dex Offerings are revolutionizing the financial world as we know it, as well as reinvent the startup investment pathways. Usually, whoever invests early in a new opportunity, is also in the front row to collect its rewards. 

How to join an IDO deal

With the increased popularity of Initial Dex Offerings, there are several platforms and launchpads out there to invest through, each with its own method of participation. 

Here is a quick guide to BullPerk’s launchpad, known as BullStarter, one of the top platforms available right now. Check it out, and see step-by-step how it can work for you!

  1. The first step in taking part in an IDO on BullStarter is to gather enough BLP tokens to be allocated in a tier. You can buy BLP tokens through PancakeSwap and store them on a MetaMask wallet. 

  2. Then, you need to connect your MetaMask wallet to the Binance Smart Chain network and enter the BullStarter Deals page. 

  3. Choose one of the active deals and click on Join Deal.

  4. Once you have joined the IDO, you will have to add your wallet address to invest tokens based on your tier. To do so, open your MetaMask wallet, copy the primary account address and insert it into the target network line.

  5. After approving your wallet, click Pay to participate in the deal and acquire the largest ticket size if you have enough funds. Expect transaction approvals throughout the process. 

That’s it! Congratulations, you have joined an IDO deal!

It is important to note that all investors go through the Know-Your-Customer procedure to guarantee safety and fairness, this ensures that no bots are registered and help comply with regulations.

Example of IDO deals on BullStarter. Source: BullPerks

Best IDO Launchpads

Other IDO launchpads also make the list, by offering different participation routes. Below, you can get to know some of the most popular and reliable platforms: 

  1. GamesPad is a holistic ecosystem for gaming, NFT, and the metaverse. Their mission is to support and incubate game entrepreneurs, presenting them with mentorship, advisory, and network connections.
  2. DAO Maker is a launchpad that runs on Ethereum, employing Social Mining and omnipresent exposure to help projects assemble a community.
  3. BSC Pad is the first decentralized platform based on Binance Smart Chain. It has an appropriate token allocation method and good user interference.

You can get to know other launchpad options and learn more about this tool on our The Top 10 Best Launchpads In The Crypto Industry.

It is critical to research and conduct due diligence on the platform and project you’re considering crowdfunding. An effortless way to test the platform’s trustworthiness is to join their Telegram or Discord spaces.

Would you like to start investing in the most promising crypto projects? Learn how to invest with BullPerks, the fairest and most community-oriented decentralized VC and multichain launchpad!