[Beginner's Course] Steemit Crypto Academy Season 3 Week 5||Initial Dex Offering For Prof. @wahyunahrul by @cinnymartins.
Oftentimes in business, new products are introduced and business startups go into business as well. When businessmen start up a new business or introduce a new product,they first of all venture capital before launching the particular business and the essence is to create awareness of such product. In a similar way, new tokens introduced in the blockchain network are popularised and get many people invest in it.
All thanks to to Professor @wahyunahrul for his erudite explanation on the on the concept of 'Initial Dex Offering'. And in response to the assignment he gave based in the topic, below is my own copy.
Question 1: Explain in your own personal opinion whether Initial Dex Offering (IDO) should be done on cryptocurrencies?
First of all, by way of explanation, An Initial Dex Offering also known as IDO is a type of crpto asset exchange that depends on liquidity pools where traders can easily swap tokens including crypto coins and stablecoins.
An IDO is a concept initiated by the decentralised exchange to raise funds within a short period of time from investors who can make purchases by swapping crypto. The idea behind this is to introduce a new token to the general public and make them aware if the newest token being launched in the blockchain network. They are tokens that represent any type of asset launched on a decentralised exchange.
In my own opinion, IDO should be done on cryptocurrencies and below are my reasons:
Firstly, The fundraising model tends to add new possibilities to the crypto market.
Secondly, owning to the fact that IDOs help streamline users delivering a secure wallet and trading platform support that is built into one interface unlike IEOs which involve an initial waiting period.
IDOs should be done on cryptocurrencies because they are the fairest ways to launch a crypto project and as such avoid pre-mines, which is an issuance system that favours project founders over community members.
Question 2: can IDO have a significant impact on the cryptocurrency world?
Yes, IDO can have a significant impact on cryptocurrency world and this is in reference to the following features of IDO.
Open and fair fundraising: with the fundraising approach in IDO, companies especially startups dont need a centralised exchange and permission to kickoff the fundraising event. Also, anyone can organize or participate in IDO, not just private investors.
Another significant impact of IDO to the crypto world is fast trading. The same way investors can buy their tokens quickly when it is launched, they can resell quickly at a higher rate during the IDO.
When it has to do with IDO, there is immediate liquidity. This talks about how quickly you can get your hands on your cash.
Question 3: Explain one example of a token that has been IDO but failed/rug pulled.
Polkastarter. Polkastarter is an example of such coin. It is a cross-chain token pool and auction protocol built on polkadot (DOT) blockchain. The refineable IDO failed failed on polkastarter. The site crashed in 1 second although the whilelist is now opened.
Question 4: Make a detailed fundamental analysis of 2 tokens. Then give your opinion on the results of your analysis.
Raven protocol and UMA protocol.
Raven protocol doesn’t have an established team. It’s an open-source project led by the core developers: The core developers launched Raven protocol
on January 3rd, 2018 and Fenton kicked off the launch with a Tweet announcing the start of mining. The project gained some notoriety when Overstock CEO Patrick Byrne announced that his company had made a multi-million dollar investment into the team. Since then, the team has been building out the core functionality of asset support and rewards capabilities.Ravencoin offers just one thing: tokenized asset transfer. And that singular focus isn’t a bad thing. When projects attempt to solve a bunch of problems at once, they often create a bunch of half-baked solutions. There’s a clear trend toward the tokenization of all types of assets
IDO Token Price: 1 RAVEN = 0.00005 BNB
Raven Protocol (RAVEN) is issued on Binance Chain as a BEP2 asset.
Initial Dex Offering: $500K for 300,000,000
The current price and rate of Raven protocol today.
The raven protocol working at providing cost-efficient and fast solutions that use the blockchain to transform the AI and machine learning industries, which are currently dominated by major corporations. With the aid of the native RAVEN token, contributors receive rewards by sharing their computer resources while the utility token is used for AI training.
UMA builds infrastructure for “priceless” financial contracts: DeFi contracts that minimize oracle usage, avoiding many of the security and scalability issues that have plagued decentralized finance. The first contracts built with UMA are priceless synthetic tokens: ERC20 tokens that can track anything while minimizing the need for on-chain price data.
The UMA project token powers the system in two ways:
UMA token holders govern what types of contracts can access the system, which asset types are supported, and key system parameters and upgrades.
the priceless methodology minimizes on-chain price requests but doesn’t eliminate them — when contract interactions are disputed, UMA token holders fulfill price requests via the Data Verification Mechanism, or DVM.
UMA tokens enable the holder to participate in community governance and resolve contract disputes through the DVM. The tokens are not an investment opportunity.
The DVM, governance system, and UMA project token have been deployed to
mainnet and can be found here.
The price of UMA for today
UMA was a successful IDO project launch, even though its IDO had initial issues, this enables DeFi developers to build synthetic assets on Ethereum, which are collateral-backed tokens whose value changes. Last April, it launched its token sale via decentralized exchange Uniswap with a starting price of $0.26 per token. In order to get that price, UMA had to place $535,000 in Ethereum into a newly created liquidity pool.
Notably, though, because token pricing on Uniswap works with a bonding curve rather than order books, the UMA token price quickly ramped up as investors lined up to purchase the token. As a result, traders attempted to get ahead of others by paying higher gas costs, which, ultimately, led to UMA’s token price jumping more than $2 minutes after the launch. It eventually stabilized at just over $1, with some buyers complaining that they bought at a higher price than pre-sale investors. This, however, highlights the issue with Uniswap rather than UMA.
Question 5: Look for one token that is currently IDO and explain the steps to be able to participate in the IDO.
$RAGE is one of the token undergoing IDO. It is a token built using ERC-20 token protocol.
Steps to participate in $RAGE IDO
- Stake $ZEE: Staking is one of the core utilities of ZeroSwap’s native token $ZEE, as it allows the community to access the product suite, including ZeeDO.
- Opt in for $RAGE sale
- Claim $RAGE won in POW ticket: the prerequisite for this is that you should have Ethereum in your wallet first for you to be able to receive the reward of $RAGE token.
In the course of my assignment, i learnt about the initial Dex Offering and its advantages to the investors and its accessibility to all and sundry and how easy it is for traders to swap their tokens using IDO. I understood the importance of IDO to the cryptocurrency world. In the course of the assignment i was opportuned to know some tokens that were IDO success and the impact they made within a short period of time. That was all for the assignment and thanks for going through.
Corrections are welcomed too as i am a newbie here and would like to learn more from you.