What is an IDO? As you remember, the first IDO in the TON eco | TON Community

What is an IDO?

As you remember, the first IDO in the TON ecosystem is coming up very soon. In this regard, let us remind you what IDO is and what its stages are.

IDO (initial dex offering)—is the opportunity to buy tokens of the project before its appearance on the decentralized exchanges at a fixed price.

1. IDO Announcement
Everything begins with an announcement: prospective investors get acquainted with the project and its team and decide whether it is worth investing in it. It is important at this stage to analyze the project: study the product, the team, and its investors; check what they write about it in the media.

2. Open registration for a token sale
If the project seems interesting, the investor can apply for participation in a token sale. At this stage, it is possible to get the right to redeem the tokens at a reduced price before they are listed on the exchange. Allocations are a limited number of tokens that can be redeemed by a single investor. Buying rights are usually distributed by lottery.

3. Token Sale Day
Investors who are given the opportunity to redeem an allocation can purchase project tokens at a fixed price on the Launchpad. This can be compared to the pre-sale mechanics of NFT collections, where a limited number of users can buy the token they are interested in. Joining the project at this stage is a profitable opportunity to invest in the project before it appears on DEX.

4. Listing the project on DEX for free trading
As soon as the token price goes on DEX, the price of the token goes into free float. At this point every Toncoin holder can buy or sell the project's tokens. Prospective project tokens are usually in high demand, which causes the market price to rise actively from the start of trading.

Be aware of the risks when investing in projects: investments can lead to a total loss of money. No project can promise you instant profits. Do not forget this.