January 13, 2022

WTF Is An IDO And Why Are We Doing One?

In this article, we dive into the question on everyone's lips: WTF is an IDO? This explainer will help you understand what they are and how you get involved in SquareWon's upcoming IDO.

WTF Is An IDO And Why Are We Doing One?

We’re going to be straight with you. We’re super stoked for our IDO. In fact, we find ourselves bursting into our favourite “Let’s Go IDO, Let’s Go IDO, Let’s Go IDO” chant once in a while. 

That’s a bit catchy, right?

So yeah, we’re pretty excited about our upcoming IDO. But we realize that not everyone understands what they are. So here we’re going to dive deeper into IDOs. What they are, how they are run, and why we’re doing an IDO. So let’s get to it.

What is an IDO?

First off, what does IDO stand for? That’s the easy bit. It stands for Initial DEX (or Decentralized Exchange) Offering.

Does that make it any clearer? Not really. 

Let’s get our head around the concept first. You should think of IDOs as similar to an IPO. An IPO, or Initial Public Offering, is how funds are raised when shares of a company are listed on the stock market. IDOs are similar in that tokens are listed on decentralized exchanges in an effort to raise capital.

It’s basically one of the many ways that cryptocurrency and blockchain technologies are changing the way we will all do business. IDOs are s*$t hot right now and are a quick and effective way for startups in the crypto space to raise capital to get their project going or to give their vision an extra boost of funding.

But wait… we should clear something up… what even is a token?

A token is an asset that can be traded and exists on the blockchain. They have a specific use, one being that they can be created and distributed in order to crowdfund projects. They represent a particular stake or can have another use within the project to which it relates.

We’ll come back to what the “DEX” part means in a sec. But first, we need to make a very important distinction.

How is an IDO different from an ICO?

Before we continue, we need to make an important clarification because this crops up time and time again when talking about IDOs.

For those that don’t know, an ICO is an Initial Coin Offering. They are just like an IDO but the tokens (or coins) are launched on a centralized exchange instead. And this is a key difference between the ICO and IDO. On a centralized exchange, the token issuance is subject to influence by third parties, i.e. the exchange. 

This influence can come in many forms. To be listed on a centralized exchange, your project needs approval by those that run the exchange. You will also be subject to trading and listing fees. This leaves it open to manipulation and can often crowd out the little guys. Not our jam, at all.

Back to IDOs, then. In an IDO, the coin or token is launched on a decentralized exchange: hence the “D” in IDO stands for DEX or Decentralized Exchange. These exchanges rely on liquidity pools within the market to function. Traders can exchange tokens and coins as long as there are some of those tokens or coins available for trading. This is far more community-focused, taking away the influence of the centralized exchanges.

During an ICO, traders could be vulnerable to central exchange hacks and privacy issues. Decentralized exchanges do not hold the funds of a trader, unlike that of a centralized exchange. DEXs simply facilitate the trade between two parties.

And, by the way, that’s the kind of decentralization that is fundamental to the coming crypto and blockchain revolution. And we love it!

That’s why we’re fundraising this way. We not only want the capital to give our project an extra tank of rocket fuel, we also believe this is the future of fundraising.

What does it mean to be on a whitelist?

If you’re on a whitelist for an IDO, you get first dibs on the tokens when they are launched on the blockchain. So before anyone else can get their mitts on them, you’ll be able to be part of the community that is building the company. It’s super important to get on whitelists of projects that you are passionate about so that you are the first to know when the tokens are available.

Each company has its own criteria for how to get on the whitelist. Some feel like a grueling assault course, so be sure to check the criteria before applying!

Where are these IDO tokens listed?

The IDO tokens are created on the blockchain (of the company’s choosing) and are then listed on decentralized exchanges like Uniswap or PancakeSwap. The important thing about these places is that they allow for small projects to issue a token and raise capital. 

What’s going on with SquareWon’s IDO?

We’re due to launch our IDO in Q1 2022. And we can’t wait to get started!

“Let’s Go, IDO… Let’s Go IDO… Let’s Go IDO…..!”

Anyway, back to it. We’ll be splitting up the use of our tokens as follows:

How our tokens will be used
How our tokens will be used. They'll be the electricity that powers the SquareWon platform.

And that’s why we’re fundraising this way. We not only want the capital to give our project an extra tank of rocket fuel, but we also believe this is the future of fundraising for companies as blockchain technology takes hold of the way business is done.

So, come with us and get involved with the future… not just SquareWon’s but the future of cryptocurrency. Get onto our whitelist for our IDO right here.

And yes, we’ll put you through your paces to get on our whitelist. But it won’t be too taxing, promise.

So head on over to our IDO page to get involved in this next-level opportunity… Let’s go, IDO!

Ready to play? Be one of the early VIPs to test out the game. Spots are running out!