What is an IDO?
Raising capital in the crypto industry is an important mechanism for the development of any project. What is the essence of an initial decentralized exchange offering (IDO)? Let’s break it down.
IDO – the process of initially offering tokens before they are listed on exchanges. In simple terms, it’s an opportunity for projects to raise funding directly from users.
The methodology is similar to initial public offerings (IPOs) in the stock market.
· IDOs allow projects to quickly launch into the market and raise funds for further development.
· Users can buy tokens at a low price and become early investors.
How it works:
1. A project announces its IDO and offers a certain number of tokens at a fixed price.
2. Depending on the platform, users fulfill specific conditions and participate. This could involve token staking or completing social tasks.
3. Distribution occurs after the token is listed on exchanges, according to the vesting schedule (token distribution plan among participants).
To participate in IDOs, you need to have a wallet and a certain amount of assets. Other conditions depend on the platform.