The explosive growth of DeFi has provided a once-in-a-lifetime opportunity for a new iteration of the financial industry. In reality, many crypto projects can now raise funds through DeFi protocols via a method known as Initial Dex Offering (IDO). This system has eliminated the strict limitations that have been obstructing the innovative development of the crypto industry.
Many crowdfunding methods such as ICO and IEO have experienced many obstacles before the IDO method was conceived. In July 2013, Mastercoin became the first ever project to host an ICO. In 2014, Ethereum received 3700 BTC (worth 2.3 million USD then) in funding within the first 12 hours of its sale. Meanwhile, the first IEO was promoted by IDAX, BitForex, Bit-Z and Bit-M on April 17th 2019. Finally, in June 2019, Raven Protocol announced the first ever IDO, which was host on Binance DEX.
IDO is the latest method for crypto projects to distribute their tokens to the public, and boasts better benefits as compared to ICO and IEO. Meanwhile, HyperDAO (HDAO), a platform based on the decentralized autonomous organization (DAO) model has recently launched its own IDO model. HDAO is committed to solving the financial problems of excellent blockchain projects, and the emergence of the IDO model will facilitate the crowdfunding of many decentralized projects through the HDAO platform. Token holders will supervise the project’s development and participate in the decision-making process of the project through the DAO model.
The IDO model is an upgraded version of HDAO’s original crowdfunding platform. This new version further integrates various services that will elevate the IDO model and turn it into a decentralized community crowdfunding service. Apart from providing community governance, HDAO’s IDO can also provide other services for these projects. For example, community members can vote to decide on the project details such as fund amount, fundraising duration and vesting period. This method of implementation allows community members to dictate the development direction and give them full control.
HDAO's IDO platform has conducted extensive due diligence on the technical capabilities, operational efficiency and credibility of any potential project to ensure its quality and eligibility. HDAO has chosen the IDO method for fundraising under the premise of decentralization. Communities and users will have the opportunity to participate in project financing at a lower price in an earlier stage through tasks such as whitelisting. This issuance method is more open and fairer, with faster transaction speed and better liquidity. After the IDO on the primary market is over, projects can then be quickly launched on the secondary market.
In its overall ecological planning, HDAO will realize a full suite of service provision such as mining, payment, communication, staking, financial management, etc.; create a breakthrough in various key technologies, and build a global DeFi network. There will be many high-quality projects that will conduct their IDO through the HDAO platform. HDAO will give high-quality projects the opportunity to raise the funds that they need. At the same time, the IDOs will also give HDAO's loyal supporters more opportunities to obtain substantial rewards.
HDAO has built the strongest financial service platform in the DeFi industry, and will provide the safest, most effective, convenient, and highest quality service to revolutionize the new era, thereby emerging as the hottest trend in the field of blockchain applications.