PARTICIPATING IN AN INITIAL DEX OFFERING (IDO): WHAT YOU NEED TO KNOW
It is 2022 and one phenomenon which remains impossible to ignore in the crypto space is an Initial Dex Offering, IDO for short. You’ve also come across such similar names as Initial Coin Offering (ICO) and Initial Exchange Offering (IEO), among others, all of which are predecessors with some shortcomings which necessitated something newer and better. IDO, which became exactly that is our focus today because as aforementioned, it is a growing sensation, inescapable, and also woven into MULA Finance.
What Exactly is an IDO?
Every project needs a foothold and people to participate in it to make it successful and this is no different. An IDO is in essence, a creative crowdfunding technique that gives a financial backbone to projects which are seeking to launch a coin or a token. As its very name suggests, it is hosted on a decentralized exchange (DEX), which is a peer-to-peer platform that links crypto buyers and sellers to directly trade with one another without any third party acting as an intermediary for the exchanges. Immediate token liquidity is a defining feature of DEX.
A project with a new token for the public usually debuts it through an IDO to accelerate its sale, the purpose of which is to allow individual investors to purchase these new tokens in advance. Any individual investor can participate in an IDO, as opposed to some other crowdfunding approaches.
The process of distribution and transfer of the tokens is automated due to the use of smart digital contracts. More so, an IDO is an “early bird catches the worm” affair since it makes it possible for early investors to gain access to a project at a relatively lower cost prior to the token generation event.
How Does an IDO Work?
In preparing for an IDO, the public is notified of the project which is hosted on an IDO-supported platform, which in turn subjects it to scrutiny and verification. After due diligence is done and the project meets the platform’s requirements, it receives approval and can proceed to launch. Investors who made prior purchases ultimately receive the tokens which they can begin to immediately trade to accrue rewards once the IDO goes live.
What are the pros of IDO and why should I participate?
The better question here will be, why shouldn’t you? The world of crypto continues to buzz excitedly and there are many who have seen the loss in being left behind. IDOs, having made greater advances and with better prospects, have come a long way from earlier initial investments. MULA Finance is providing a new avenue with its anticipated wallet and token for all to become part of this. Take a look at some of the upsides:
· Immediate liquidity and shorter waiting period: these are some of the main benefits of IDO. It provides immediate liquidity following the token generation event and this makes it practically and relatively easier to immediately trade tokens and for better prices.
· Involvement of all: IDO is more so appealing due to its non-restrictive nature, which means it is open to anyone interested in investing.
· Lower fees: unlike ICOs and IEOs for instance which are fraught with heavy exchange fees, IDO doesn’t have to endure this, making it easier for projects to channel their resources into other aspects.
· Security: IDO provides better security for buyers and their tokens which are protected on their wallets and invulnerable to hackers and other breaches.
· Anti-whale mechanism: Most IDOs, MULA’s included, have anti-whale mechanisms and rules which safeguard against “crypto whales” seeking to manipulate prices on the market by unduly amassing tokens.
Getting you started
We’ve laid it out for you. Now, the question is, how much is needed to participate in a MULA IDO? For that, an individual investor needs just a minimum amount of $100 and a maximum of $7500. The investment is open to everyone, clearing tokens post-sale is just as convenient and all you need are your MULA wallet and your funds.
At MULA Finance, our main goal is to provide a more secure and expedient payment solution in Africa that transcends borders for small and medium sized business owners through the MULA wallet and token, creating wealth for our people along the way. Become part of this sensation and let’s build it together.
We’ll continue to keep you posted as we work towards this realization. Keep an eye out!
