Hello everyone welcome to my home work of season 3 week 5 of in the crypto academy, my name is joel muckachi but my steemit username is joemuk and i am very excited to be submitting my homework post for our professor who goes by the name @msquaretwins on the assignment given in his article titled "Initial Dex Offering (IDO)" for season 3 week 5 of beginners course. Thank you professor @wahyunahrul.
1). Explain in your personal opinion whether IDO should be done on cryptocurrency.
IDO should be carried out on cryptocurrency, IDO also known as initial idex offering is a strategy used by new crypto projects to raise funds, it can also be used as a form of advertisement so that the token will be known to the public, this event called IDO must be done for a new crypto project if not the organizers will find it very difficult to bring fame to their product, the IDO can also be used to raise funds and this funds can be used by the token founder to enlist the token on DEX, and to do some other things. Another importance of IDO on cryptocurrency is that it gives value the token when it gets attention from the public.
2). Can IDO have a significant impact on the cryptocurrency world?
IDO has a very large importance to cryptocurrency and it's importance should not be overlooked as it creates an avenue to get a new crypto to the wider audience, thereby given value to the newly launched token, another importance of IDO to crypto is fast and immediate trading meaning Those who invest in IDO token by buying it during IDO event can trade with it immediately after the launch of the token and this will have a huge impact on cryptocurrency world.
IDO event is open to a lot of people so that many people can take advantage of the opportunity because it is transparent and the token gets liquidity as soon as the IDO is over so that investors could get access to their token and maybe the token might have a good market price after launch so that investors can sell at high price because the price at launch is always the highest price, and more the approval of new crypto project is always easier with IDO because the community members will be the one to verify the project and this helps the project or token to be listed in due time.
Number 3). Explain one example of a token that has been IDO but failed/rug pull.
The token that fail in IDO is $Fine also known as refinable native token, the token known as $fine was going to be launched on Binance smart chain on April of this year, the requirements to participate in the IDO is to hold a specific amount of BNB and connect the BNB token with Binance and then confirm Binance smart chain on Polkastarter App. The initial token for this $Fine IDO was to be 500M which would be distributed to people accordingly.
The IDO failed because the project contrace was leaked before the launch and as such there was huge bot manipulation and that made a lot of investors to loose money, And because this event did not go according to plan, many people that bought this token said it was a scam.
Question 4). Make a detailed fundamental analysis of 2 tokens that have done IDO, and compare the two tokens. Then give your opinion on the results of your analysis.
There are a lot of crypto that have done an IDO and it was successful.
Open ocean was announced on may 2021 and the IDO platform used was polkastarter, for a user to be eligible to participate in the IDO he or she must at least have 250pols which is the polkastarter coin, if as a user you have the 250 pol then you will be asked to do a kyc in the polkastarter watchlist while on twitter each user interested was told to follow opean ocean and polkastarter on twitter, join OpenOcean announcement telegram channel and community telegram group. The maximum supply of the token is about 3.8M and 20% were released on Token Generation event and 80% will be release quarterly. The token price was $0.04 per $OOE token with ROI of 7.08×. The IDO event ended on July 12th 2021.
CoinBurp is another token which i will like to analyze, the IDO used for the launch is Polkastarter, the coinburp IDO started around march of this year and users were instructed to apply so that they will be able to join the whitelist, the whitelist is the list users would register and undergo verification processes after that then you as a user is now ready to participate in the IDO that was scheduled 26th June of this year, owning 250 pols was the requirement given to users that want to be in the white list, and the The white list closed on July 22nd 2021, the verification continued from 23 to 25th of July. The maximum supply of this token was about 500 Million and less than 1% of the maximum supply was used for IDO event. The sales price for this token was $0.110. The project raised about 6.65 million dollar with ROI of 1.59x.
The IDO event ended on 26th of July 2021. Let's see the picture below
Time to Compare OpenOcean and CoinBurb
|Ann. Date||Coinburp IDO coin was announced in March 2021||OpenOcean coin was announced IDO event in may, 2021.|
|IDO platform||coin burb was launched on Polkastarter.||openocean was also launched at polkastarter.|
|Max. & IDO supply||Maximum supply of the token is 500Million and less than 1% was used for IDO event||Maximum supply of the token is about 3.8Million and 20% was used for IDO event.|
|Token price and ROI||before now sale price for the token was $0.110 and ROI of 1.59x (58.5%)||The token price was $0.04 and ROI of 7.08x (+608%)|
|End date||The IDO event closed on 26th July 2021||The IDO Event closed on 12th July, 2021.|
As we can see in the above analysis that polkastater decentralized exchange was the plat form used to launch both coinburp and opeanocean . The token price for BURP was $0.110 and that of OOE was $0.04.
My Opinion on the Result of the Analysis
My opinion is that many users were able to get OpenOcean because the token price at that time was little compare to coinburp and that made the Return on Investment for openocean to be higher than that of coin BURP. Also, the supply of coin BURP token for IDO event was little compared to that of OOE token that make OOE enter many exchange market faster.
5). Look for 1 token that is currently IDO and explain the steps to be able to participate in the IDO
This is a Decentralized non-custodial liquidity protocol operating on the avalanche protocol, the yeild farming has already secured a $3 million dollar for the round led by Ascensive Assets.
It aims to create a protocol a market protocol in which users can gather their crypto assets to earn interest or obtain credit through over-collateralized loans.
Steps to Participate in BENQI IDO
- First go to https://benqi.fi
- secondly Launch the app the connect your wallet after registration and verification
- Then search for BENQI TAB and click on Details
Then click on the Join Whitelist button and verify this on MetaMask.
- Then your wallet will be part of the lottery system.
The IDO event is the best and reliable way to raise fund for a new crypto project, the huge profit potential is not only for those who have the crypto but also for the investors who invested their money, Many tokens have taken part in the IDO event and are successful and the investors benefited from them as well as the organizers of the crypto projects.
Note that there are also fake IDO out there just like there is real IDO that is why i will advice any one who want to participate in any IDO to do deep research of the crypto project team before investing in the project also it is good to check the project fundamentals, goals or vision and probably strategic way to compete and last in crypto market may be deemed fit to invest in.
Thank You @wahyunahrul
Written by @joemuknic