IDOs (Initial DEX Offerings) are a new entry in the world of crypto exchanges and have come with the aim to improve previous malfunctions and perfect the game of online trading and fundraising. At Simon Zenios & Co LLC we make sure that we follow the updates in the area, to provide you with specialized legal advice and assist you in such steps.
Our comprehensive team understands the constant developments in the field and makes sure that it is fully informed and aware of all the different perspectives of launching your IDO tokens and pass that information to you, too.
If you thought that ICOs (Initial Coin Offerings), STOs (Security Token Offerings) and IEOs (Initial Exchange Offerings) are the latest thing in today’s technological advancements and digital exchanges, you need to keep reading. As fundraising is developing year by year and even day by day, the crypto market has witnessed impressive changes with new launches happening constantly.
ICOs are now a thing of the past, either you believe it or not. Not very long ago, back in 2017 ICOs were one of the most popular ways to launch your tokens. Hundreds of projects and billions of dollars later, ICOs are starting to rust and become outdated.
The interest towards ICOs started to become less and less at the beginning of 2018 and going into 2019 the success of only double-digit projects was signalled. There is no doubt that saying that ICOs have become somehow useless is an overstatement, as the funds that worth millions of dollars are still a quite impressive capital if you think about it.
The collapse of Bitcoin prices together with investors being greedy in a getting-rich-quick mindset were indeed reasons for that decline.
Following that, STOs were thought to become the predecessor of ICOs, regardless of the strict requirements in order to participate in one. Raising funds through an STO is of course very difficult, because of the SEC (Securities Exchange Commission) and its demands and though they are somewhat identical to IPOs, they are a much more cost-effective method.
2019 was indeed the year of IEOs, which come after and are regulated on the benefit of start-ups which desire to raise funds. In return, the start-ups must pay fees and a percentage of the tokens that manage to be sold in the IEO. Another reason why IEOs are beneficial related to the previous versions of token launching is that the tokens get listed for trading almost immediately after in the exchange.
The general idea is that IEOs provide fair play for newcomers in the field and probably one of their greatest advantages is their audience.
After all this variety in launching tokens, here comes the Initial DEX Offering (IDO)! IDOs are very similar to IEOs with the difference that IDOs are conducted on decentralized exchanges (DEX), while IEOs are conducted on centralized ones. Decentralized platforms are exchanges which are run by code. Through DEXs people can trade their cryptocurrencies without using a middleman. Although DEXs currently have very little traction and a daily trading of a little under 2 million, statements support that even if DEXs have not yet reached the maturity levels to provide the desired numbers, we should embrace the change and push through development.
ICOs help raise funds while IEOs and STOs have entered with new layers of intervention and regulation that have as a goal to ensure value and lower risks for participants. In technology however and advancements, there is always the need for more, there is always the desire for better. IDOs shyly enter this game, to continue the legacy and aiming to improve it. So, (I)DO you?
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