IDO (Initial DEX Offering) in 2024 – Features, Platforms, Advantages and Disadvantages

IDO (Initial DEX Offering) is a fundraising method used by startups and cryptocurrency projects. The essence is to raise funds by issuing and selling tokens in decentralized exchange (DEX). Users can then sell the resulting tokens for a profit or keep them if they want to continue participating in a specific project.

IDO is a more modern analogue of OIC and the next step – YES. In this article, the editors of cryptomais.com will consider what advantages and disadvantages this method has, why the community adopted it, as well as which platforms support such functionality.

What is IDO? Principle of Operation

IDO Launchpad is a decentralized platform that hosts projects you can invest in. Investors can invest in projects that seem promising to them, and all operations are carried out in a decentralized manner using the concept of liquidity pools.

IDO platforms are built on one or more blockchains. The most common are:

IDO is by far the newest cryptocurrency crowdfunding model, but it has its drawbacks. DEXs, in particular, are less scalable. If an IEO is able to raise 500 million dollars or more, this will still be unattainable for an IDO. Another obstacle is the average user's lack of knowledge about cryptocurrencies, due to which beginners more often choose simpler centralized sites.

The main advantage is that IDOs are able to provide immediate token liquidity because liquidity pool providers on DEX are generously rewarded. Improving projects provides liquidity to the DEX by allocating a portion of the budget for this purpose. Additionally, many projects encourage the retention of their tokens in users' wallets by providing additional bonuses for this.

Once the token sale ends, buyers can begin trading tokens immediately. If there is high demand, early investors will have the opportunity to sell tokens at a significantly higher price than they purchased them for.

Platforms for carrying out IDOs

Name Link Token sales completed Project examples Maximum return
BSClaunch bsclaunch.org 23 MetaDoge, BizVerse, Vrjam 8.76x
Seedify.fund launchpad.seedify.fund 70 Forest Knight,
Bloktopia, Arena of Heroes
12:15
launchpool launchpool.xyz 21 Unizen, Kingdom, Proxy. SingularityDAO 233x
TronPad tronpad.network 20 Katana Inu, MetaVPad, Game Zone 20.54h
DAO Creator daomaker. with 156 CryptoGPT, Degen Zoo, Muon Network 38.29x
Polka Starter polkastarter. with 111 Thetan Arena, Refinable, SuperFarm 26.6 hours
Redkite Pad redkitepad.com 70 Dsync.ai, Mizar, the unrestricted 11:84
BSCPad bscpad. with 140 AIPAD, WeWay, Verve, Metafluence 32.25x
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The statistics below are current as of October 2021, taken from the website cryptorank.io All listed sites are fully decentralized; to work with them you need to connect a crypto wallet, for example, metamask. However, in the better case, the investor is required to go through KYC Verification.

1 MakerDAO

  • Number of startups: 105
  • Total raised: US$ 42.36 million
  • Blockchains: Ethereum, BNB, Solana, Polygon, HECO
  • daomaker.com

A suite of products including a DAO (decentralized autonomous organizations) incubator, integrated DEX trading, staking, pharming and other highly profitable solutions. DAO participants can vote for startups and receive guaranteed royalties. You can also directly join the project DAO and participate in ecosystem management.

2 Polka Starter

  • Number of startups: 106
  • Total raised: US$ 32.31 million
  • Blockchains: Ethereum, BNB, Solana, Polygon, Avalanche, Celo, Polkadot
  • polkastarter. with

One of the leading DeFi crowdfunding platforms. The protocol is designed for token pools with multi-chain integration. It allows you to hold auctions, carry out ultra-fast and secure swaps, move assets between blockchains and raise capital in a decentralized and interoperable environment. Flexible and supported permission system for NFT sales. There is built-in fraud checking as well as KYC integration.

3 BSCPad

BSCPad
  • Number of startups: 70
  • Total raised: US$ 16.10 million
  • Blockchain: BNB
  • bscpad.com

This IDO platform is the first in the Binance Smart Chain ecosystem. Provides a low barrier to entry and solution for inclusive incentives and rewards for all token holders. BSCPad creates fair decentralized launches, eliminating the possibility of all tokens being purchased by bots in the first few minutes. A two-tier system with different distribution types is supported – guaranteed lottery.

4 RED Kite

  • Number of startups: 70
  • Total raised: US$ 9.33 million
  • Blockchains: Ethereum, BNB, Polygon, Avalanche
  • redkite.polkafoundry.com

Launchpad is a decentralized finance marketplace and platform created by PolkaFoundry. To gain access to exclusive opportunities and startups, you need to own PKF tokens. Additionally, you can earn passive income by staking PKF, LP-PKF and joining other promising pools. In addition to the blockchains it already supports, Red Kite is testing Polkadot pools on the PolkaFoundry testnet to become the first launchpad of its kind in the Polkadot ecosystem.

5 GameFi

  • Number of startups: 54
  • Total raised: US$ 7.33 million
  • Blockchains: Ethereum, BNB, Polygon, Avalanche, Arbiter, Fantom
  • gamefi.org

The GameFi platform, true to its name, specializes in IDO gaming projects (blockchain games with NFTs). Supports functionality to pass KYC, user whitelists. The platform is backed by top platforms and investors including DAO Maker, Polygon. Every project released on the platform is carefully manually checked for quality.

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6 BullPerks

  • Number of startups: 44
  • Total raised: US$ 5.13 million
  • Blockchains: Ethereum, BNB, Polygon, Avalanche, Tezos, Solana
  • bullperks. with

BullPerks has implemented new self-regulatory policies to protect users, which creates an enabling environment for the successful launch of the IDO. To democratize community investment opportunities, BullPerks is creating a 6-tier system that provides access to early-stage projects with low barriers to entry.

7 Paid Network

The Ignition platform operates within the ecosystem, which allows startup creators to maximize the project's potential. Although it has only been in operation since 2021, it has already launched around a hundred high-quality projects. A simple lottery system allows easy access to offers. Incubation tools and consulting services are available.

8 TrustPad

  • Number of startups: 82
  • Total raised: US$ 13.17 million
  • Blockchains: Ethereum, BNB, Solana, Polygon, Fantom, Terra Classic
  • trustpad.io

TrustPad is a launchpad for several major blockchains, allowing projects to attract capital and investors to take advantage of early-stage security. You can Stake TrustPad (TPAD) tokens to enjoy early access to top projects. If there are still unclaimed tokens left at the end of the sale, they will be distributed on a first-come, first-serve basis.

9 Seedifund

  • Number of startups: 54
  • Total raised: US$ 18.53 million
  • Blockchains: Ethereum, BNB, Solana, Polygon, Avalanche
  • seedify.fund

One of the most popular platforms for carrying out IDO projects related to NFTs, metaverses and blockchain games. Offers safe launch: DAO voting system for projects, fines for projects that do not meet requirements, strict listing rules and the possibility of returning funds to participants.

10 Starterlabs

  • Number of startups: 41
  • Total raised: US$ 5.4 million
  • Blockchains: Ethereum, BNB, Fantom, Polygon, Avalanche
  • starterlabs.xyz

Positioned as a blockchain research firm specializing in decentralized crowdfunding, play-to-earn, co-working and incubation opportunities on Web3. Starter Labs offers customers access to innovative projects, upcoming NFT airdrops, games, and other Web3 resources.

The most profitable IDOs for 2024

It is reasonable to evaluate the effectiveness of an initial DEX offering based on how the token's price has increased over time after the sale. After all, this is what determines the final profit for investors. Here are some examples of tokens distributed through IDO and their profitability over the entire period since they entered the market:

  • Height (ALU). Return 808.1x.
  • Project Seed (SHILL). Return 752.5x.
  • Bloktopia (BLOK). Return 698.23x.
  • Cake Monster (MONSTA). Return 513.62x.
  • MetaVPad (METAV). Return 482.76x.
  • PulsePad (PLSPAD). Return 444.34x.
  • GameFi (FATF). Return 366.77x.
  • ADAPad (ADAPAD). Return 348.7x.
  • StarLaunch (START). Return 342.37x.
  • WaguySwap (WAG). Return 333.38x.

As you can see, investors in IDOs can recover their investment many times over. But in fact, it all depends on the project developers and their efforts, as well as the market trend.

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Advantages and Disadvantages of IDO

Common questions

What is IDO?

Initial DEX Offering – initial offering on a decentralized exchange. A type of token sale to raise funds in the crypto space.

How does the IDO platform work?

The IDO decentralized launchpad adds startups that are in development. Investors can purchase tokens from these promising projects for further resale when profits increase. The liquidity pool determines the liquidity of the tokens. They can be exchanged for stablecoins and cryptocurrencies in a decentralized environment.

What are the best platforms for an initial DEX offering?

We can highlight DAO Maker, Polkastarter, BSCPal, Red Kite.

Is it possible to make money with IDO?

Certainly. Some tokens after sale and listing gave hundreds of X (users' dollar investments increased hundreds of times).

What do you need to start making money?

Web3 Wallet like Metamask or Binance Chain Wallet and starting capital. If you want to whitelist a project and receive its tokens in priority, then you need to fulfill additional conditions – generally keep the IDO platform tokens in your wallet.

What are the risks?

Perhaps the best risk is that the project you are investing in turns out to be a scam. The platforms seek to ensure investor safety and only list projects that have been comprehensively verified.

Conclusion

Initial DEX offering is an excellent and new version of the environment for initial fundraising by cryptocurrency projects. Of course, this option has its advantages and disadvantages, so it is necessary to delve deeper into it to fully understand the process. It should be understood that, unlike centralized brokers, here you are solely responsible for your funds. Be careful when storing private keys and seed phrases of your wallet, never send them to anyone, even if the platform administrator supposedly writes to you (this is a lie) or offers to receive free tokens.