Battle of market domination: ido vs EIO in cryptomen space
The world of cryptocurrencies has seen a sharp increase in new participants and innovative financing models in recent years, but two of the most popular were Ido (initial Dumbole) and IEO (initial exchanges). While both models share certain similarities, they also have clear differences that can be more attractive to investors. In this article, we dive into the details of each model and examine which one could be more suitable for market dominance.
ido: initial dumbole
The ido model, a short circuit for the «initial Dumbole», is a relatively new financing strategy that has gained considerable attention in the cryptomen space. It allows companies to raise funds by losing its project at several exchanges at once, rather through one initial public offer (IPO). This approach allows projects to use the liquidity of different markets and achieve a wider audio.
The IDO model usually includes the following steps:
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- Extracting fees
: Exchanges pay a fee for the introduction of the company project, which can range from 10% to 30%.
- Income sharing : The remaining income is shared among investors who bought chips during the financing round.
EOE: Initial exchange offer
On the other hand, the IE is an alternative funding strategy that appeared in 2019. It allows companies to raise funds by selling the original token of its project directly to investors at a set price. This approach has been popular with projects like Throne and Toman.
The IE Model usually includes the following steps:
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- Exchanging list
: Token is listed on one or more exchanges.
- Income sharing : Exchange of shares of shares generated from Token trafficking.
Comparison IDO and IEO
Both models have their advantages and disadvantages:
* The risk of diversification : IDO models allow companies to use different markets, which can increase the risks of diversification for investors. If one market decreases, it may not affect other exchanges.
* Smaller regulation : IDO models are often less regulated than IEO because they do not include the same level of token and safety measures.
* Higher Higher Fees : IDO models tend to have higher list fees compared to IEOS.
Conclusion
While both IDO and IE models have their strengths and weaknesses, IDO can be a better choice for investors who prefer the risk of diversification. By allowing companies to raise funds in several markets, IDO models can increase the overall size and liquidity of the market, making investors more attractive. However, IEO offers lower fees and potentially greater control over the distribution of tokens that can be addressed by some investors.
Finally, the choice between IDO and IE depends on the individual risk tolerance, investment objectives and the investor’s preferences. By understanding the benefits and disadvantages of each model, investors can make informed decisions that are in line with their investment strategy.