🤫 What is IDO? Note for beginners
Raising capital in cryptocurrency is an important mechanism in the development of each project. What is the essence of IDO? Let's look at it in this material.
IDO (Initial DEX Offering) is the process of the initial offering of tokens before they are listed on exchanges. In simple terms, this is an opportunity for projects to attract funding directly from users.
The methodology is similar to IPO (issue of shares on the stock market)
· IDO allows projects to quickly launch on the market and receive money for further development.
·Users can buy tokens at a low price and become early investors.
Principle of operation:
1. The project announces an IDO and offers a certain number of tokens at a fixed price.
2. Depending on the site, the user fulfills specific conditions and takes part. This could be staking tokens or completing social tasks.
3. Distribution occurs after the token is released on the exchange, according to the vesting (plan for the distribution of tokens among participants).
—To participate in IDO you need to have a wallet and a certain amount of assets. Other conditions depend on the site.