Initial DEX Offering (IDO)

What Is An IDO?

As part of the token sale process, an IDO relies on a decentralized exchange (DEX). For example, a cryptocurrency project hands over its tokens to the DEX, which then processes user contributions. Using smart contracts on the blockchain, these procedures are automated and run without human intervention.

There are a few typical ways used in IDOs, however the specifics vary according to the DEX in charge of it.

1. After a thorough review, a DEX IDO is approved for use. For a set price, they provide a predetermined number of tokens, and in exchange, consumers lock up their money in these tokens. When the token generation event (TGE) takes place, investors will be given their tokens in exchange for their money.

2. Typically, there is a list of approved investors. In order to join the list, you may have to do marketing chores or simply provide your wallet address.

3. In addition, a portion of the funds received is used to form a liquidity pool for the project's token. The rest of the money goes to the team members. After the TGE, tokens can be traded. Liquidity is often locked in for a set period of time.

4. The tokens are given to the user and the LP is made available for trading at the TGE.