The IDO Crypto Fundraising has expanded many opportunities to many investors and startups to raise funds efficiently for their project growth. In particular, the model offers the following benefits to blockchain projects and companies:
1. Enhanced liquidity
IDOs employ an automatic market maker β a mathematical formula to calculate the demand for a token based on the collateral supply in liquidity pools on the decentralized exchange. This facilitates the exchange of smaller coins, allowing IDO projects token gets access to immediate liquidity, which can benefit the token price.
2. Transparent fundraising
The IDO crypto model allows anyone to participate in fundraising. Thus, you no longer need to rely on traditional private investments or a centralized exchange to kickstart your token sale.
3. Lower costs
With IDOs, you only need to pay the gas fee for deploying a new smart contract. This smart contract controls the liquidity pool and the assetβs token.
4. Fast trading
An IDO allows for immediate trading once the tokens have been issued. As a result, investors can buy your tokens immediately and commence trading.