IDO is a fundraising campaign hosted on a decentralized exchange launchpad, with the exchange taking on the burden of the project’s reputation. Many investors and some types of cryptocurrency initiatives, such as decentralized apps, desire transactions to be decentralized and carried out on a peer-to-peer basis (dApps). This applies to NFTs as well.
So, how to get your NFT project through the IDO stage?
You must first fill out an application first. It contains the primary questions about your projects ‒ everything else can be discovered via the consultation. You will be asked for an interview shortly after your submission has been assessed, when you will have the chance to go through the project in further depth. If the project meets all platform standards, the marketing campaign and whitelisting process start. The IDO itself phase comes next, during which investors on the platform can purchase your token. A wider audience will then be reached by the promotional campaign. Once all three rounds of IDO are through, the platform will list your token and provide you with additional essential services like market-making and marketing.
Why is IDO a better choice for NFT projects?
IDO is a go-to approach for raising funds for your NFT project. Regardless of the concept your project implements, there are multiple benefits of IDO for NFT:
- Transparent fundraising. Individual investors tend to buy a big number of tokens at a discount while a token sale is underway. They can make a sizable profit this way by reselling the tokens to the general public. Businesses, particularly crypto startups, wouldn’t require any centralized exchange or authorization to organize a fundraising event using this Initial DEX Offering fundraising technique. Aside from individual investors, anybody can join an IDO. And when you run an NFT project, you want to opt for fast and transparent transactions without the need to confirm someone’s identity.
- The speed of transactions. This is a huge benefit of IDO token sales as tokens can be released and sold nearly immediately ‒ there’s no speed limit, technically. Once the first portion of tokens released is sold out, the next is rolled out for a bit higher price.
- High liquidity. IDO, although being hosted on a decentralized crypto exchange, is a nice start for the project’s building liquidity for its tokens. Even more ‒ the token receives immediate liquidity during an IDO, which ultimately reflects on the token price.
Running an IDO for an NFT project is an essential and very important stage of project’s development as it helps you build a stronger community and attract investors’ attention. You also have to be sure your project is kind of unique ‒ investors prefer to put their money into things they believe in.