Animal coins have become a hot topic of conversation throughout the industry. On the one hand, it is the eye-popping coin price increase, on the other hand, it is the strong community consensus that is quickly gathered, so that people inside and outside the industry are encouraged to enter quickly, and the more people participate, it also drives this field of projects to come overwhelmingly, and becomes a very strong windfall at the moment. Behind the madness of animal coins, let’s ignore Musk’s “marketing The “marketing” factor, trying to turn to the evolutionary upgrade in the way of issuing coins. That is, the minting side of this animal coin craze: the IDO platform.
What is IDO?
IDO (Intitial DeFi Offering), translated, is the initial online offering of decentralized protocols. The earliest project to carry out IDO appeared in 2019, namely Raven Protocol on Coin DEX for IDO, but then IDO did not stir up the water, and in 2020, IDO began to have more real scenarios with the help of Uniswap, Banlancer and other channels, and then it was more focused on liquidity mining. Until this year, IDO is really popular, like the current surge of animal coins are mostly IDO come.
And in the mainstream issue of IDO selection, the project side is mostly selected on PancakeSwap. According to Debank data, in many DeFi protocol ranking list, PancakeSwap ranked first, in addition to the lock volume ranking lead, the most eye-catching data in the 24-hour user number, PancakeSwap’s user number has opened a large gap with other protocols, currently shows its 24-hour user number has reached 551014, while the second ranked Behind the number gap is the fact that PancakeSwap as a DEX based on IDO has attracted a lot of people to participate, thus becoming a “double champion” in terms of lock volume and popularity.
Why did IDO choose PancakeSwap?
Or why IDO on PancakeSwap is crowded. From the IDO development history, IDO is the best way to cold start the project, like last year’s liquidity mining project, with near zero cost Token as a weight for providing liquidity contributor reward tokens, and rely on the market self-service to complete the Token cost of anchoring and capturing, in a short period of time to gather attention and popularity. In terms of encouraging user participation, IDO does not have investors first, users stand in the same starting line, fair participation to it, this more fair and just way, users are also relatively more acceptable. But then IDO although as the standard for liquidity mining, but because the DEX participation threshold is still very high, IDO still has not really released the value.
Essentially, the biggest problem is still the restricted performance of Ether, which has become an obstacle to the development of DeFi, but the wave is surging, and the project cannot stop because of this, which finds an opportunity for this year’s Heco of Firecoin and BSC of Coinan, who have captured the user group very swiftly with the good operability of the smart chain. Since the beginning of the year, topics such as the dominance of Ether in DeFi not being maintained have become very widely discussed, but the real opportunity for DEX protocols on smart chains such as BSC is still to be found in the IDO issue, the very hot Animalcoin since May.
A very important point about the animal coin issuance wave is speed. Although essentially IDO and ICO is not the same, the ultimate purpose is to complete Offering. IDO with the simple and direct simplicity advantage, the project side to issue tokens directly abandoned the white paper and other links, submit the project name, the total number of tokens and other guidance content fill can be easily done, even if it is a small white users, can also issue their own tokens. Among them, PancakeSwap, as the top-ranked AMM and liquidity mining project on the CoinSec smart chain, has captured the value of the spillover from ethereum and made full use of its BSC advantage to develop a lot of interesting ways to play, becoming the first entrance for projects to hit the new. And it has become the most visible DEX in this boom.
What kind of value logic is defined by IDO hitting new
Along with the crypto market gradually coming into the mainstream view, DeFi with its crypto demonstration role is getting stronger and stronger in momentum. Whether in the exponential growth of locking volume or user volume, or the emergence of more and more ecological projects, DeFi has become an unstoppable big trend in the crypto world. And to further explore in terms of DeFi’s total lock-in volume, half of it comes from DEX.
However, it has to be said that DEX is still facing very many problems, first of all, high slippage, impermanent losses and robocalls, and participation in DEX will face great uncertainty. Secondly, the overall threshold of use of DEX is high, and the page design and operation form is relatively complex, in the case of Uniswap, novices need at least a few hours to study and understand, ease of use is much lower than the centralized exchange, which largely hinders the participation of novice users. Most of all, it is the lack of a more advanced technological upgrade in terms of infrastructure, in terms of asset issuance and asset liquidity.
IDO, which has become a popular method of initial public offering for many projects, plays a key role in bridging the relationship between users and traffic. That is, we are talking about a more advanced technology upgrade. Here we take the sale of pets for example. In the past, we can only buy pets through the seller’s market, the early need for more careful selection, due to the credibility of the business or the middleman to earn the difference in price is difficult to understand, the buyer can only passively buy, after the tail to participate in the main subject to see the performance of the current “pet”. Well, now with IDO, we can act as both buyers and sellers, can decide their own identity and for certain purposes, continue to provide traffic value, the cascading effect gradually formed a user-led “active” value revolution, whether it is the project or the buyer, can gain an inherent The project owner or buyer can gain an inherent spirit of ownership and continue to contribute intellectual power.
At present, IDO has created a very large wave of project issuance, and further accelerated the speed of token issuance, specifically from different latitudes of performance, users, and market, etc., a new shape. First, performance-wise, compared to Ether, smart chains such as BSC offer more than 1000 times cheaper gas fees and faster block times than Ether by more than 10 seconds. By using a closed and preventable verifier system (allowed Proof-of-Staked-Authority). Provides a more adoption-worthy validation system in a relatively centralized manner. Synchronously, the various DEXs that come based on smart chain hair are relatively more favored by virtue of this.
Secondly, the most prominent performance of IDO is the simplicity, compared to the traditional way of issuance, through IDO, Token issuer through the chain to the centralized platform for fundraising, without the need for licensing and marketization. IDO can bring more control for users and the value of self-definition, the definition of assets is no longer the exclusive use of large institutions, anyone can obtain or issue their own approved tokens through this way. Anyone can obtain or issue their own approved tokens in this way, and thus bring more freedom and autonomy to investors.
In terms of market penetration, chain technologies such as BSC and Heco have captured huge numbers of users through IDO, and have rapidly pushed various data to skyrocket. With a chain effect, the value of the crypto world has been conveyed from a single Ether ERC20 token issuance to a more diversified and advanced track, contributing to the rapid formation of this wave of boom and further prying more potential values in. Let’s not say how long this wave of animal coin issuance boom can last, but IDO has opened up this “all roads lead to Rome” advanced way, which is bound to ambush more new boom projects and form a competition event, paving the way for a new round of crypto world outbreak in advance.
At present, IDO has become the standard for many DEX platforms, and recently, SushiSwap officially announced the launch of IDO issuance platform MISO, which provides three types of token issuance for users. It is not difficult to understand that IDO will gradually become the standard weight of DEX and other tracks competing for traffic and users. “In terms of the current market, we do not know whether the bull market is over, insurance, it is worth turning to the IDO platform, concentrate (DeFi) and participate in IDO, even if faced with great uncertainty about the future market, both in the bull market attack, but also the defense of the bear market. “One industry source said so.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/behind-the-shib-frenzy-the-changes-that-have-been-overlooked/
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