IDOs are a way to raise money for blockchain projects in the same way that ICOs raise money through the sale of cryptocurrencies and IPOs raise money by companies offering their shares publicly. IDOs allow projects to release tokens through digital exchanges, thereby giving investors the chance to acquire them.
When fundraising through an ICO, the project itself gets to collect the tokens, however with IDOs the fundraising is carried out through a DEX, and the assets are collected in a liquidity pool on the DEX’s platform. This cuts out the middleman, saving listing costs and giving direct access to token holders to take advantage of trading those tokens directly on the exchange.
Successful IDOs can be a massive step up for the project and sometimes gives community members access to governance rights to determine the future direction of the project.
Image source: DepositPhotos.
Here are some of the hottest IDOs coming up, including one happening today.
Chingari’s IDO on SolRazr
Chingari is one of the most popular social networks in India. In fact, in 2019 when TikTok was officially banned from the region, this marked a momentous day for Chingari, the beneficiary of millions of viewers and influencers who suddenly had no place to go. Chingari though is different from TikTok, in that, while it does offer short videos to viewers, it has based its model on the blockchain. In contrast to its competitors Chingari incentivizes both the users and content creators. Users are rewarded for engagement, the more they watch or engage with the content creators the more $GARI, the native token of the app they stand to gain. Chingari’s currency $GARI is based on the ultra fast Solana network and it has already seen a massively successful private funding round from investors, and a public round through the Republic platform.
Now, between the 15th and 16th December it is launching its token for public sale on SolRazr. With over 85 million downloads and 32 million active users on the app, this will be one to watch!
New Order’s IDO on Sushi MISO
New Order is a unique project based on the blockchain that gives DAO community members the right to vote on the future activity of its project incubator and launchpad. It is the members of this community who hold its native governance token $NEWO that have absolute voting rights on which new projects to incubate, with the goal of seeking and propelling innovative new DeFi projects forward. The incubated teams gain the support of the members and partners who furnish them with their expertise and know-how across a range of important subjects, from development and deployment, to legal rights, marketing, to listing a token. The project already supports 3 major projects and it plans to bring 30-40 DeFi new projects to market over the next two years.
Today is the day that New Order is selling its native token to the community from 8.30am EST, for a 24-hour period, on the Sushi MISO Launchpad. One not to be missed.
Safle’s IDO on Polk
Mark your calendars for the 16th of December, 2021 as our next contender is Safle, with their much awaited IDO. Safle is a developer platform which contains useful tools for both developers of open governance protocols and consumers, so that they can build and manage all of their multi chain wallets in one place. According to the head of Polygon,
“Safle is building vital next-generation wallet infrastructure that will eliminate existing points of friction to drive wider adoption of all blockchain applications. Matic is excited to be among the first chains supported by SafleID, and we look forward to supporting Safle on their mission to drive greater adoption of blockchain technology.”
The IDO is taking place on Polkastarter, one of the most well known launchpads for new tokens and DeFi projects.
GeoJam’s IDO on Lattice Exchange
Geojam, the iOS music app has already made the news by bringing on board well known musicians like Mariah Carey, Nyjah Huston, and 24kGoldn and now it’s launching its new native crypto token $JAM through the Lattice Exchange Launchpad.
Geojam is a social media app which allows fans to use their $JAM tokens to buy merchandise of their favorite artists in the shop, and at the same time music creators can build liquidity pools giving fans the chance to pool their tokens in order to gain governance rights to the future path of the musicians.
The app has already raised $5.9 million through two private sale rounds and is now launching on Lattice to sell their tokens publicly. This is happening now.
According to Sarah Figueroa, the CEO and Co-Founder of the app, “Our crypto token allows artists and fans to leverage their collective influence in a way that’s never been done before to build new opportunities and provide a way for them to earn together. Artists want to engage deeper with their fans, while fans have also demonstrated a desire to engage with their favorite artists. $JAM reward incentives offer a key benefit to the community while also empowering artists to monetize their fandom.”
Final Word
For the projects themselves, a successful IDO can feel much like winning the lottery. For the investor, it’s important to understand the quality and usability of the project behind the token. The better the project, the higher the token value is likely to rise over time, and as we have learned from Bitcoin, getting in early is the best way.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.