With the rapid growth of decentralized exchanges, a new mechanism for crypto companies to debut their tokens has emerged: Initial DEX Offerings (IDOs). But what is an IDO, exactly? What will IDO development Crypto marketing look like in 2021?
What is IDO Crypto, and how does it work?
An Initial Dex Offering (IDO) is a sort of fundraising concept that is comparable to an Initial Exchange Offering (IEO). IDOs launch cryptocurrency on decentralized exchanges (DEX), whereas IEOs launch tokens on centralized exchanges.
A decentralized exchange is a sort of cryptocurrency asset exchange that uses liquidity pools to allow traders to exchange tokens. Liquidity pools are made up of stablecoins and crypto assets. USDT/ETH, for example, is a liquidity pair. Traders can freely swap tokens on the DEX without the need for an intermediary.
A decentralized exchange, such as Uniswap, PancakeSwap, or Sushiswap, is used by an IDO to launch tokens. IDO allows the token’s creators and buyers to keep ownership of their funds. Furthermore, because they do not have to pay fees to centralized exchanges, IDO is a more cost-effective way of token listing. The first-ever IDO-Raven Protocol was conducted by Binance DEX. Since then, a number of other blockchain-based companies have used IDOs to list their tokens on DEXs, including Compound, UMA Protocol, and Balancer.
ICO/IEO vs. IDO Crypto: What’s the Difference?
The key distinction between IDOs and IEOs/STOs/ICOs is how the tokens are launched. The ICO procedure is similar to that of an initial public offering (IPO), except that the ICO coin issuers handle all of the duties. In IEO, on the other hand, the project’s funding is handled by the centralized exchange.
The security token powers the investment contract in a Security Token Offering (STO). STO deals with monetary profit-generating assets that must adhere to government restrictions.
IDOs operate in a similar manner to IEOs. The project can issue its coins directly to individual investors or traders in any way. However, because there are no middlemen in IDO, you do not have to pay an exchange listing charge like you would in IEO.
Furthermore, IDOs eliminate some of the issues that come with IEO financing. Issuers of IEOs are not permitted to offer their tokens on competing exchanges. Furthermore, IEO projects have little say over the parameters of their funding.
What is a Token Generation Event, and how does it work?
A Token Generation Event (TGE) is when a corporation creates tokens as a means of obtaining funds. Because these tokens are effectively tiny slices of a product, the designers often refer to token sales as token generation events, or TGEs, as an alternative for initial coin offerings, or ICOs.
Regulatory agencies are increasingly focusing on ICOs being classified as securities and hence subject to taxation. On the other side, Token Generation Events are not classified as securities. As a result, there is no tax penalty on TGEs.
Trends in Decentralized Finance (DeFi) and IDO Crypto
The IDO concept, without a doubt, overcomes some of the difficulties surrounding IEOs and ICOs. IDOs, moreover, bring a new level of intervention to IEOs. It eliminates the need to ask exchanges for permission to hold a fundraising event. At the same time, it creates loopholes that whales and scammers can take advantage of. As a result, a pricing change might have an immediate impact on a project.
Decentralized finance, on the other hand, is here to stay, and the Initial Dex Offering (IDO) is the next stage in cryptocurrency fundraising. By incorporating KYC capabilities into the existing IDO model, projects will be able to include control mechanisms in the future. Issuers can have more control over who can acquire tokens and how many they can buy thanks to KYC restrictions. Centralized exchanges, on the other hand, have more stringent criteria and, in many cases, more higher listing fees. This gives upcoming projects a listing option if they don’t currently have the resources or liquidity to list on a major exchange.
IDO’s Marketing Plan
If your blockchain startup is getting ready to launch a DEX, you’ll need a highly targeted IDO marketing plan.
Implementing an IDO marketing campaign strategically should result in a surge in visitors and a successful token sale. Building a community of supporters and cultivating long-term ties with potential and existing followers are other important aspects of IDO promotion. It also encourages the community to support the project after the IDO is completed.
The following are some of the most effective IDO marketing methods for promoting token sales:
SEO and Material Marketing: If you want your project to develop over time, you’ll need to optimize your website and write engaging SEO content about it.
Building an active community that encourages involvement and support for your project is essential to effective social media marketing.
Influencer marketing: By involving influencers in their marketing activities, the IDO project can gain greatly in terms of increased traffic and brand exposure.
Using DeFi trackers and ratings: Getting your token listed on websites specialized to DeFi exchange development projects, such as trackers, listings, and ratings, will help you sell more tokens.
Positive media involvement can help your IDO gain reputation without having to spend a lot of money on advertising.
For IDOs, a Blockchain Marketing Agency
To be successful, any IDO project requires an effective and well-executed marketing strategy. While most projects are aware of the concept, few are aware of how to put it into practice successfully. TokenMinds, a blockchain marketing agency, will work with you to develop and implement an IDO marketing strategy that will help your project succeed.
You’ll need a company that knows how to get the word out about crypto initiatives in the community. Furthermore, several blockchain marketing organizations, including IDOs, have an internet marketing team for token sale advertising. They also offer SEO and content marketing experts that can help your website or token sale profile attract more qualified visitors.
We will walk you through the IDO crypto promotion process at TokenMinds, and provide you with a successful marketing approach that gets results. To achieve a successful IDO, we will focus on growing your community, improving brand recognition, and growing your reputation.
PR for IDOs in Crypto
Having a relationship with journalists, as well as IDO crypto news and blogs, can help with PR and media coverage. Paid press release services, on the other hand, can help you develop the awareness and visibility you need to get momentum.
However, you don’t have to buy followers to gain community trust. Positive media coverage resulting from crypto PR can help your IDO acquire traction faster and in more relevant places. The more people who hear about your initiative, the better. The more understanding and interest the community has about your IDO, the more effective a PR plan that combines numerous campaigns may be. Working with a crypto PR firm that understands how to promote your coin is a no-brainer because public relations is so important.
Do you want to launch a DEX Initial Public Offering (IPO)? Please reach out to our IDO crypto experts, who have extensive experience and expertise in assisting initiatives in raising cash from the crypto community.