Do you also have an amazing idea for a blockchain based project and want to shape it into a startup but lack the fundings for it? So you need investors but don’t know where to start and how to get their attention. This is where IDO launchpads become useful. Here we will understand how IDO launchpads work and why it is preferred over other crowdfunding models like ICO.
What is IDO?
IDO refers to Initial DEX Offering where DEX stands for Decentralized Exchange. With the rise in the use and awareness of cryptocurrencies, startups and businesses are coming up with new ideas based on blockchain technology. These businesses and startups use a decentralized IDO launchpad platform to list their projects for IDO offerings. They release their own IDO tokens in these decentralized liquidity exchanges (DEX). These tokens represent some assets that have a fixed value in crypto.
Investors can check all the projects listed on these IDO launchpad platforms and can choose the projects they think are promising and invest in them. To invest in these projects they can buy their IDO tokens by swapping them from the liquidity pool with some other stable coins or cryptocurrencies or both.
These IDO launchpad platforms can support one or multiple blockchains. Some popular blockchains on which these platforms are built are Ethereum, Binance Smart Chain, Cardano, Solana, etc.
Popular IDO Launchpad Platforms
Binance is one of the most preferred blockchain and BSCpad is the first ever IDO launchpad platform on it. This platform has very low transaction fees. All token holders are benefitted and traders of all sizes can invest in various BSC projects thus enabling fair launches. It also provides staking options for the token holders creating another opportunity for passive income.
This IDO Launchpad is built on the Polkadot blockchain. Its major feature is that it can provide projects on different blockchains on the same platform. In other words it supports interoperability.
This launchpad is also built on the Polkadot blockchain and supports projects from multiple blockchains. Projects on RedKite go through various rigorous scans to ensure they are not scams. In addition to that it provides integrated vesting schedules which means rewards are given if you are invested for a longer period of time whereas penalty is cut if you remove investment early on before the end of the vesting period.
This is the first IDO launchpad on the solana blockchain. Its major feature is that it provides an equal and fair system of administration and allocation to the users during the IDO process.
There are many other launchpads like CardStarter, TrustPad, TrustSwap, DAOMaker, Seedify, etc which all provide IDO Launchpads with the same or some added features.
Advantages of using IDO Launchpad Platforms
- The projects can find investors easily and vice-versa. This helps in the growth of budding projects which might have slowed down due to lack of funding.
- As the IDO tokens are listed in a liquidity pool in an decentralized exchange their prices are controlled by the pool from the very beginning unlike ICO where the coin or token is given out to investors before listing them on an exchange.
- As an investor, it is not only an investment on the project but also kind of a passive income if the price of the IDO tokens increase with time if the project performs well and more and more investors swap other crypto currencies from the liquidity pool.
- It provides a platform for crypto projects giving them a stage to gain popularity and the audience they deserve which in turn attracts more investment.
How to create an IDO Launchpad Platform
There are mainly two ways to create an IDO launchpad platform namely:
- From Scratch: Here we have to develop the platform from scratch that is both the frontend and the backend and their integration. This would take a good amount of time and effort to build and needs to be tested thoroughly for any possible vulnerabilities.
- Using an IDO Whit label: These are replicas of already existing and tested IDO platforms that can be customized as per user requirements and features can be added or removed to make a completely new functioning IDO launchpad. These whit label solutions are provided by various development companies at affordable prices and are a quick and easy way to create a new IDO platform without worrying about vulnerabilities.
The IDO launchpads are a very convenient way for providing platforms for projects that offer IDO tokens as a crowdfunding method. These IDO tokens are already listed on an decentralized exchange and therefore already have a liquidity pool making them a good investment asset for passive income attracting more investors for good projects in turn providing aid for their growth.