If you’ve been active in the crypto space over the past year, you have surely heard of IDOs. This somewhat risky and more complex alternative to IEOs is currently seen as a goldmine of money-making opportunities.
So what is an IDO exactly? In short, the acronym stands for Initial DEX Offering; that is, initial token sales on decentralized exchanges. No exchanges or scammy ICOs are involved. However, to keep an organized manner of token distribution, certain sophisticated platforms have emerged to assist. These are known as IDO launchpads.
In this article, we look into 6 popular initial DEX offering platforms. We also explain how to participate in token sales through some of the best IDO launchpads. Finally, we take a look at resources that will help you keep track of any upcoming initial dex offering. Keep on reading and you’ll be ready to invest in no time!
- 4 Best Initial DEX Offering Platforms
- How to participate in an IDO
- How to track upcoming and ongoing IDOs
- IDO launchpads vs Exchange-based launchpads
- IDO vs ICO launch platform
- Wrapping up
4 Best Initial DEX Offering Platforms
So we have now established that IDOs are similar to ICOs but then performed in decentralized exchanges. As you might imagine, this causes havoc. Luck and speed are usually the factors that determine if a user can participate in such an offer.
At least that was the case until IDO launchpad platforms were created. Essentially, these websites act like a middleman that organizes the distribution of coins among participants that meet a certain set of requirements. They form a barrier of entry that rewards users that meet certain criteria, taking luck out of the equation.
The following platforms were selected based on ROI, user experience, and reputation. Let’s check them out.
BSCPad – Best reputation and returns
BSCPad is considered to be one of the best IDO platforms for BSC projects. The website allows users to connect their wallets in a few easy steps, before getting the opportunity to participate in highly rewarding IDOs.
According to Cryptorank, BSCPad ranks the highest among all competing platforms for average current ROI of its IDOs. It also ranks second for its all-time high ROI for the same projects.
In the past year, BSCPad has separated itself from other launchpads by making its service primarily available to users with large starting capital (rich folks!). Guaranteed token allocations during IDOs require the staking of at least 10.000 BSCPAD tokens and many projects are only available to Blue Diamond users (75.000 BSCPAD staked). Users that choose to stake less than 10.000 tokens will only qualify for lottery tickets.
Check this video for the exact steps you need to follow in order to participate in BSCPad IDOs.
MoonEdge – Most affordable guaranteed allocation
MoonEdge is a launchpad gem for those who are not ready to pay up tens of thousands of dollars to get a guaranteed allocation in new IDO projects. It has a great reputation thanks to its partnerships with Chainlink and Chainboost, and is powered by Polygon.
The platform offers guaranteed allocations in upcoming IDOs for users who stake at least 5000 MOONED tokens, which is a lot cheaper than the other options on this list. Overall, MoonEdge is one of the best crypto launchpads for the average (not-so-rich) investor. One thing that sort of confused us with this website, initially, is the lack of clear information for upcoming IDOs. This was quickly resolved when we staked our first coins.
If you want to take a look at the upcoming and ongoing IDOs of the platform without staking, you can follow their Twitter account, which posts all the latest information for those who want to stay up to date.
Check this video for the exact steps you need to follow to participate in MoonEdge IDOs.
RedKite – Best IDO launchpad for Blockchain games
RedKite is token launch pad often chosen by quality projects in the GameFi sector. Being a top IDO platform, there are certain requirements that you will need to follow in order to participate (staking is just one of them) but going through with it has historically proven to be very rewarding.
In order to participate in RedKite IDO listings, you will need to get the PKF token. Similar to the options above, such tokens can be acquired either by means of a centralized exchange (e.g. Gate.io), or a decentralized alternative (e.g. Uniswap).
Now, RedKite is well known for its high returns but also its high frequency of new token sales. For this reason, the tiers of participation are most favourable to investors with large capital. Guaranteed allocations require the staking of at least 40.000 PKF tokens, while anything less simply receives lottery tickets.
Check this video for the exact steps you need to follow in order to participate in RedKite IDOs.
Seedify – Also popular for blockchain gaming IDOs
Seedify is very similar to RedKite. Its token (SFUND) is available on both centralized and decentralized exchanges, making it easy to obtain and stake, in order to get started. The entrance barrier for this launchpad is aproximatelly 80% cheaper than RedKite, making it a cheaper alternative for those who want to dip their toes into seed-stage crypto investing.
Much like RedKite, Seedify is mainly launching projects related to blockchain gaming and the metaverse, operates across multiple blockchains, and is relatively easy to get a hold of. APY for staked tokens is much higher compared to RedKite, and the locking period is also shorter.
For a better overview of the platform, as well as the exact steps you need to follow in order to participate, make sure you check this video.
How to participate in an IDO
When you choose one of the initial DEX offering platforms from the list above, there are certain steps you need to follow before you qualify for launchpad participation. Let’s check them one by one.
- Buy tokens of the platform – You will first need to purchase the native tokens of the launchpad you’re interested in. You can do this both through centralized and decentralized exchanges, with decentralized options being the most convenient. Simply hold some ETH in your Metamask wallet and follow the information shown on the launchpad of preference. You will be redirected to a DEX where you can swap your ETH for the native tokens.
- Connect your wallet and stake your tokens – The tokens you purchased will now be put to work. Connect your Metamask wallet to the platform you chose and lock any amount of tokens that will help you qualify for the preferred tier. The benefit of doing so is two-fold. First, you receive a high APY depending on the time you choose to lock, and secondarily you qualify for IDO launchpads.
- Go through KYC – Check your account status by going to your profile page and click on the dedicated button that will help you go through KYC. This is a requirement for most IDO launchpads.
- Apply for an upcoming IDO – This is the final step. Check the upcoming projects and apply to participate. You might need to perform some activities before you fully qualify. These are usually social media-related activities – following accounts and liking posts of upcoming projects. When the distribution begins, you can allocate selected stablecoins in exchange for the listed token.
How to track upcoming and ongoing IDOs
Due to a large number of token offerings, it is hard to keep track of upcoming projects. Thankfully, there are several useful tools, like an IDO calendar, which can help you discover quality projects ahead of time, so you don’t miss out.
Coincodex has a detailed initial DEX offering calendar of all upcoming projects and is always updated in real-time. Users are not just able to see the stage of the fundraising (in our case IDOs), but also the respective platform, dates, and ROI.
Cryptorank, which was previously mentioned above, also has a dedicated page for upcoming token sales. While not limited to IDOs, this list is great for those looking to get a bird’s eye overview of upcoming IDOs on the launchpads we mentioned above. Users can also filter IDOs in upcoming (to prepare), ongoing (to participate), and completed (to check ROI).
If you are serious about launchpad investing and wish to get a better overview of all your investments, it might be a good idea to keep track of all the IDOs you participated in. This can easily be done with a basic Excel sheet. This way, you will be able to track additional data, like the denomination of the value of tokens in BTC and ETH.
IDO launchpads vs Exchange-based launchpads
For experienced investors, the first thing that comes to mind when hearing the word “launchpad” is probably Binance. They were among the first to use the term for new projects launching onto their platform. This is not to be mistaken with IDO launchpads. They are very different.
Exchange-based launchpads are token offerings performed on a trading platform. Binance and Gate.io are the most popular examples. Users need to purchase and stake the native utility token of the platform in order to participate. Pretty similar so far. However, the ratio between staked tokens and rewards is usually much higher, since the native token has an established reputation. You might also need a much more extensive KYC process in order to participate, especially if you plan to withdraw the funds to an external wallet.
Initial DEX offering platforms are much smaller in size. Even the most popular ones (as shown above) have a low barrier of guaranteed participation, and the ratio between staked tokens and IDO allocation is more favorable. That said, the higher the benefit, the higher the risk.
These platforms are more “unstable” compared to the former, as they are not very established. Change of sentiment or reputation issues could easily crush the value of their native token, which would hurt large investors/stakers the most.
IDO vs ICO launch platform
Then, we also have highly modernized and systematized ICO platforms. This is not to be mistaken with the wave of scammy ICOs that took place in 2017. Such platforms are thoroughly reviewing the validity of projects before listing, and in most cases, the selected projects have to pay large sums of money to have the opportunity.
Coinlist is a very popular platform of this type. While most might say that their token offerings are more like an IEO than an ICO, it is important to recognize that there is a difference between Coinlist and Coinlist Pro. The former is the main website, where users can stake their tokens and participate in ICOs. The second is a dedicated platform meant for trading (in this case an exchange). That said, this option is highly centralized, and not everyone is able to participate, due to the oversubscribed lottery.
On the other hand, we also have decentralized ICO platforms that are open to everyone who wants to participate. These ones list projects without a specific pricepoint, allowing the market itself to decide the value of an upcoming token. In other words, they work like auctions. The most popular option among these is Copper.
In this article, we looked at some of the best initial DEX offering platforms in 2022. We further analyzed their strong points, as well as the types of investors that might benefit from them. Finally, we compared some of the acronyms associated with token offerings, identifying their key differences.
To summarize, these are the best IDO platforms we talked about:
- BSCPad – Highest average returns but also a high barrier of entry. Best for investors with high starting capital.
- MoonEdge – Polygon Launchpad with a low barrier of entry, ideal for smaller investors. Guaranteed allocations for all participants.
- RedKite – The most popular platform for blockchain-based games with play-to-earn concepts. High barrier of entry but justified, given the reputation and results of prior launchpad projects.
- Seedify – Also popular for GameFi projects and NFT games – Offers lower barrier of entry compared to RedKite.
Note that participation in IDOs is very risky, and rewards are not guaranteed. The contents of this post, and all information related to initial DEX offering platforms, are strictly educational. Do not invest more than you can afford to lose.