Initial DEX Offerings (IDO) - The potential risks and benefits
This article aims to target the activities of scammers and fraudsters leveraging on decentralization._
-Here’s a breakdown on some key points on IDO:
- IDO can be vulnerable to fraud and exploitation by scammers, who may use it to raise funds without intending to deliver a legitimate project.
- Despite this risk, IDO can also be a valuable tool for legitimate projects to raise funds and distribute tokens to early investors and the community.
- IDO allows the public to fund liquidity in exchange for tokens, but this also means that the public may be vulnerable to exploitation and centralization of tokens by developers.
- Legitimate IDO can provide an opportunity for projects to raise funds and distribute tokens at a cheaper price, while also generating or reserving tokens for future investors or early investors through measures such as seed sales.
- IDO can be a useful tool for projects with good solutions or ideas that lack investors attention, helping to kickstart their growth and development with major impact on community growth.
🔸Core Chain record on [IDO]
It’s not new that Core chain has an exploding narrative to It’s development leveraging on the best part of Bitcoin and Ethereum - Core chain also exposes Bitcoin to EVM creating an oppurtunity to the world to unlock 1Trillion dollars in value of Bitcoin on Core.
This has drawn several attention to Core chain from both Legit builders and Fraudsters, A big hit on crypto investors have been recorded with several malicious projects launched without the intention to deliver projects on Core.
You and I have been victimized in one way or the other due to:
1) Over dependence on Hyped projects
2) Fear of missing out
3) Misinformation
4) lack of knowledge
5) Priotize opinion over due diligence and more.
There’s no doubt on the importance of being cautious and doing due diligence when participating in IDO, while also recognizing its potential benefits for legitimate projects and the community.
🔸Platforms for issuing tokens equally have some level of Centralization or Decentralization, here's some IDO platforms and their level of Control:
Bowpad (Partially Centralized)
Pepe Launchpad (Decentralized)
Dot Launchpad (Centralized)
BSCPad (Partially Centralized)
CoinxPad (Partially Centralized). e.t.c
Launchpad Devs responsible for Governance always determine requirements for new project seeking to utilize it’s Launchpad
These are some of the reasons we encourage and support community driven projects - Project centralization is minimal or zero.
Centralization allows (devs) to leverage off it’s community with a potential threat of disappearing with crypto funds.
1. Fraudulent intentions: Some devs might create a project with the intention of scamming investors and absconding with the funds.
2. Lack of accountability: The decentralized and anonymous nature of cryptocurrency makes it easier for devs to remain unaccountable and disappear with funds.
3. Poor project management: Devs might underestimate the complexity of their project, leading to financial mismanagement and eventual abandonment.
4. Personal financial struggles: Devs might face personal financial difficulties and see the project's funds as a solution to their problems.
5. Legal or regulatory issues: Devs might face legal or regulatory challenges, leading them to abandon the project and disappear with the funds.
6. Disagreements among team members: Conflicts within the development team might result in some members leaving with the funds.
7. Market volatility: Devs might become discouraged by market fluctuations and abandon the project, taking the funds with them.
8. Lack of transparency and governance: Without clear governance structures and transparency, devs might feel empowered to misappropriate funds.
9. Personal circumstances: Devs might face unexpected personal circumstances, such as health issues or family emergencies, leading them to disappear with the funds.
It’s essential for investors to exercise caution, research thoroughly, and demand transparency to minimize the risk of falling victim to such incidents.
DYOR, invest wisely!
