2021-07-20 14:36:01
3 options to invest in crypto projects
ICO, IEO, IDO - how to raise investments, what investment option to choose, and what are the possible risks? Let`s talk about it.
ICO
Initial Coin Offering is a fundraising method when a company issues tokens and sells them to investors. In addition, the company undertakes to pay dividends in one of the following ways:
Redeem a part of the tokens sold at a fixed price higher than on the ICO day.
Sell services for tokens at a better price.
Any other bonuses that investors may find attractive.
Keep in mind that the project may fail, or maybe it is a typical fraud.
So before taking part in the ICO, you should thoroughly study the project, its team, strategy, and product they offer. Сonducting an ICO is a costly and time-consuming way to attract investments.
IEO
Initial Exchange Offering is an initial coin offering operated and managed on the exchange platform on behalf of the startup. The IEO participants don't put money in smart contracts, instead, they create an account on the exchange platform where the IEO is held, place funds into their exchange wallets via coins, and then use them to buy the company tokens.
This method inspires much confidence compared to ICO since exchanges always carefully select projects, and besides, it is much safer for investors and more convenient for the companies. However, this option of raising investments bears high expenses for selling tokens for the company.
IDO Initial DEX Offering is an initial offering of the project`s tokens hosted on a decentralized exchange. In IDO, the initial coin sale and listing happen almost simultaneously. Investments are attracted through smart contracts of the liquidity pool. The benefits are quick and cheap listing, instantaneous liquidity, although the bad thing is the lack of a price control mechanism.
Market Making Pro helps projects start listing on exchangers, reducing costs and time spent on attracting investors.
Our investors will definitely find you with the help of Market Making Pro.
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