Explanation of digital currency subscription
Do you want to know more about digital currency subscription and how to invest and participate in it? Here’s everything you’re looking for right now.
Initial Offerings (IDOs) are an effective and successful way to raise money for startups looking to take their investment products to the public. This method is used in the cryptocurrency industry as well, and it is called digital currency subscription operations.
These IPOs allow projects to engage their holders and users in building their own community, and project teams can set limits and request certain commitments from their community in order to get whitelisted to invest in.
Sometimes, an IPO can bring many benefits that an investor will want to take advantage of. So, in this article, we will help you to have a comprehensive understanding about these IPOs and how they work if you want to participate in them.
What is an IPO?
The initial offering of digital currencies is organized when the digital project decides to launch its currency on a certain decentralized exchange, and this often helps it in the process of raising funds.
ICOs offer three major advantages for projects over Initial Coin Offerings (ICOs) and Initial Exchange Offerings (IEOs):
Instant Liquidity: ICOs allow cryptocurrencies to be publicly traded almost instantly, with good liquidity allowing for less price volatility.
Fairer Launch: IDOs allow almost anyone to invest in cryptocurrencies that have just been launched, which makes the project look attractive not only to venture capitalists, but also to ordinary investors.
Lower fees and simple solutions: Some enterprise digital exchanges offer services to launch project IDOs in a short period of time and at a lower cost compared to IEOs.
This allows digital projects to focus more on developing their projects and not worry so much about fundraising. Some DEXs also help projects engage their investors by restricting initial launches to a few whitelisted wallets. To get whitelisted, projects can create quizzes or request that their posts be shared on social media.
This leads to the involvement of investors in educating themselves about the project, and thus ensuring that the level of awareness of investors is raised about the project in which they can invest.
Investing in IDOs offers investors the opportunity to invest in new projects that are trying to innovate in the crypto space. If the projects are promising and successful, this could guarantee them a stake in the next leading digital venture.
Moreover, IDOs offer a range of benefits to investors. Among these benefits, we find:
Spot trading: Since new cryptocurrencies are instantly listed on digital exchanges, this enables investors to trade their investments with the lowest possible closing period.
A fairer launch: In the case of IEOs and ICOs, projects usually give a certain allocation to private investors and this does not support the level playing field. So with IDOs, almost anyone is allowed to invest in the new digital currency without discrimination.
How to subscribe to digital currencies
There are several platforms that offer an arranging service for this type of underwriting, each with a different method of participation. Among the most important of these platforms is the Polkastarter platform. In the following, we will provide you with the method of subscribing to digital currencies through this platform.
Generally, there are two ways to participate in the Polkastarter project. Either through digital currency subscription platforms, such as Polkastarter, or through the project’s community.
In order to get whitelisted through this platform, investors have to collect “POLS Power” call points through certain blockchain activities, which include, for example:
Keep the platform’s native POLS coins in your investment portfolio for at least seven days.
Hold POLS coins on Uniswap or PancakeSwap for at least seven days.
Doing POLS mining on the platform. Doing so will give you immediate access to whitelist eligibility, but your coins will be locked for seven days.
Accomplishing these activities will allow you to join the Polkastarter whitelist, and if your wallet address is chosen, you will be allowed to participate in the IPO of new coins.
As for the method of subscribing to digital currencies through the project community, projects usually engage their community via social media by selecting and whitelisting their most dedicated followers. This method varies from project to project, and when a project announces its inclusion on Polkastarter, the whitelist is usually closed.
Once you have your whitelist, you will have to go through the Know Your Customer (KYC) process to ensure that no bots are registered in the process and comply with regulations.
Here is a list of some other IPO platforms that you can consider:
GameFi: A new cryptocurrency offering platform focused on blockchain games.
DAO Pad: Another popular new cryptocurrency offering platform from DAO Maker. It is keen to scrutinize projects carefully before listing them.
bscpad: Binance Smart Chain IPO platform.
It is very important to be very careful about checking out which platform you want to invest in your ICO with. An easy way to do this is by joining their community on Telegram or Discord to see if the platform is reliable or not.
What is the difference between ICO, IEO, and IDO?
ICOs, which stand for Initial Coin Offerings, are done through the official website of the new cryptocurrency itself, not through another ICO or trading platform. Only after this IPO can the project list its currency on a designated digital exchange. These initial offers are often scammed, so investors should be extra careful if they decide to participate in one of these initial offers.
IEOs, which stand for Initial Exchange Offerings of Digital Coins, are done via certain digital exchanges such as Binance, Kucoin, and Gate. This type of subscription in digital currencies is the most profitable and comfortable type of subscription, especially with regard to the high degree of security it guarantees. But as a prerequisite for taking advantage of participating in digital currency offerings through it, the investor must hold large numbers of platform currencies to raise the possibility of participating in it.
IDOs, on the other hand, stand for the IPO which we covered in this article. As we mentioned earlier, this type of IPO is done through specialized platforms such as DaoMaker and Coinlist.
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