Cryptocurrency: IDO vs. IEO: What’s better for investors?
In the world of cryptocurrencies, popularity and adoption have increased in recent years, and new tokens will be launched every month. One of the key factors that investors consider when choosing where to invest in their encryption currency is the type of listing process – the initial distribution (IDO) vs. Original Exchange Offer (IOO). Although both processes have benefits and disadvantages, Ido has gained popularity among investors, while IOO is still a more traditional approach.
What is ido?
The original distribution (IDO) refers to the process by distributing a new cryptocurrency to original investors or supporters. During this process, the sign is given free of charge in return for the money raised from this early deployers. The IDO process allows immediate access to a new coin and offers early investors the opportunity to benefit from the success of the project before it reaches public markets.
What is Ioo?
The original exchange offer (IOO) refers to the process in which cryptocurrency changes its existing shares or strata on the public stock exchange. In other words, IOO gives investors the opportunity to buy and sell the brand via an existing platform instead of giving it for free as in IDO.
What is better for investors?
So what’s better for investors – ido or IOO? Here are some key differences:
* Speed : Idos typically has a faster process than Ieos. Token is immediately distributed in early investors, while IOO often require waiting days or even weeks when the brand is listed.
* Directing : Idos gives investors more control over their puzzles and can lead to a higher financial return as they receive a greater share of the success of the project. On the other hand, Ieos often leads to less contributions and may have less control over its distribution.
* Marketing : IDOs are usually more marketable than Ieos, as early investors are often highly motivated to promote a new coin to their nets. This can lead to increased awareness and deployment among potential users.
But what about safety?
One of the most common concerns of IDO is that they can pose greater risk due to lack of regulation and control. However, some IDO projects have carried out strong security measures to alleviate this risk, such as the fight against money laundering (AML) and KYCC policies.
Examples of successful IDO
Some significant examples of successful IDO are:
* CHAINLINK : Distributed Oraakkel Service that allows intelligent contracts to interact with external sources of information.
* Distributed : Blockchain-based virtual reality platform.
* Twins : Distributed Exchange (DEX) Cryptocurrency Trading.
Examples of successful IEOS
Some significant examples of successful IEO are:
* Near protocol : Ethereum 2.0 -based scaling solution aimed at reducing transaction costs and increasing scalability.
* Singulaleret
: Distributed Network for creating, finding and deploying AI-powered applications.
* Revolut : A digital bank that offers a selection of financial services, including payment cards, credit cards and currency exchange.
conclusion
In summary, both IDO and IEOS have benefits and disadvantages, IDOs can better fit into investors who prioritize speed, control and marketability. However, it is necessary to conduct a thorough study of all projects before placing it in its ID. With the rise of decentralized exchanges (Dexs) and the original coin deals (ICO), the landscape is still crowded, which makes investors crucial to stay up to date and adapts their strategy accordingly.
Disclaimer
This article is intended only for information purposes and should not be considered an investment advice.
