How to Evaluate the Potential of an IDO Project Before Investing.

The cryptocurrency world has found itself once again at the cusp of an upheaval in the system. Multiple projects with ambitious features, enterprises vying for control when Web3.0 arrives and takes its hold in the industry and the world, even small-time investors and enthusiasts now looking for more control and agency in the projects they take part in, with all of this and more, it’s safe to say that the industry’s gone from its primitive days and is now experiencing its own industrial revolution.

With all these groundbreaking changes in the industry, one thing stayed the same, the support of the people remained paramount and acquiring it meant sure success for most projects.

This drumbeat in the industry led to it being controlled so much by crowdfunding, which is inarguably the most democratic way you could start your dream project.

Among these crowdfunding models, one stood out against the rest not only for its efficiency in delivering maximum profit potential but at the same time the indispensable security it offers the investor and the developer.

Let’s talk about IDOs, and how to find the best ones out there!

Before anything though, what is an IDO? And why are IDOs the best crowdfunding model in the industry right now? 

The What and Why of IDOs 

Similar to previous crowdfunding models that the cryptocurrency industry came to know, the main focus of the IDO mechanism is to gather funds from investors to power projects and set them up for success. However, what it does differently from previous systems is that how it takes security seriously.

With ICOs and IEOs, the process is unregulated, investors are forced to take the developer’s word for it, and some bad actors in the industry saw this as an opportunity to take advantage of their faith and trust, leading to failed startups, scam projects, and millions of dollars stolen from investors who just wanted to realize dreams and profit from it too.

The IDO model aims to solve this by securing the investor’s safety first and foremost.

With conventional IDO models such as those that can be seen from top-of-the-line platforms like Adlunam you’d find that instead of entrusting the funds to the developers from the get-go, crowdfunding starts with the introduction of decentralized exchanges.

This middleman approach is not new in the crowdfunding world, but what IDOs do differently is introducing a more secure way of supporting projects, without losing your money to bad actors and rugpull scams that have riddled this industry!

Still, while IDOs are a great way to staunch bad actors and entities in the industry whose main goal is to only steal and not give back, this model remains susceptible to projects that would not be able to make it out of the mainstream cryptocurrency world, which is still a massive fail on the investor’s end.

So, how do we solve this?

Well, there are telltale signs that would inform you if a project’s going to be successful, let alone IDO projects. Let’s explore those indications and find out how to find the best IDOs in the industry! 

What makes a great IDO? 

While there’s no definite way for you to find out if an Initial Dex Offering-powered project is going to make it out of the mainstream crypto space or not, discovering some telltale signs and finding patterns amidst the mess will help you decide whether investing on that project you’re looking at is worth it or not!

In the case of telltale signs and patterns, here are some of them: 

Trusted Launchpads

There’s no denying it—at the heart of every successful project lies a platform that is powerful enough to bring out its best qualities.

Finding projects on trusted platforms and launchpads that are recognized by the industry as one of the most trusted IDO launchpads out there, is a great plus and a good sign that the project you’re hoping to invest in is something that will stay in the ringer for a long time.

Furthermore, investing in projects with comprehensive launchpads gives you not only peace of mind but at the same time the opportunities to get on a project that is fully supported by the launchpad it is in! 

Tokenomics and Utility

Examining the token distribution system of an IDO project is a great way to weed out for-profit projects with those that serve real purpose and ambition.

Fair allocation, achievable economies, sustainable models, and a scalable system are what you should look out for in a project before investing.

Utilities come next, but are similar in importance to examining your project’s tokenomics. Exploring whether your project in question solves an issue, has made a clear plan on how to achieve its goals, and is not made for the sole purpose of profit is a great gauge that will help you discover which projects are best and which are not.

Niche projects are fine, but consequently, the isolated issue they’re looking to resolve must be something that the whole industry is to benefit from. 

Community and Communication

A strong and engaged community significantly helps with the success of an IDO project. In this case, looking for projects with established communities and those that communicate well with their people is a great start to finding your dream IDO enterprise.

Furthermore, projects that provide regular updates, and meaningful interactions, and those that enable quality communication channels are the best ones to look out for when you’re investing in an IDO project!

Funnily enough, looking for IDO projects that foster community relations and meaningful communications is easy nowadays, thanks to Launchpad projects that enable community engagement and purposeful chatter in projects under their wing! 

Marketability and Potential

Projects that offer high marketability are good for the investor’s pockets, projects that offer marketable features are great for the investor entirely!

Look for projects that offer comprehensive plans on how they would expose themselves in the industry and those that are dedicated enough to show up and be present in launchpads, in-space cryptocurrency events, and more!

Moreover, you should look out for projects that hold serious potential against the competition! Projects that offer key features that set them apart from other enterprises with the same use case are those that stand out and succeed in this industry, so investing in projects like these will always be a wise choice! 

Partnerships

Having meaningful partnerships with other projects in the industry plays a crucial role in the success of your IDO project.

Strategic partnerships with other projects that run deeper than just communities collaborating, projects that collaborate towards a single goal, and those that tie themselves with reputable institutions in the industry amp the credibility of a project, giving investors more peace of mind in the process, and it also opens doors for future growth!

Looking out for projects that sided themselves with meaningful platforms and projects that strive to provide the best IDO experience for investors and developers alike is a great step towards finding success in the industry, as projects like these not only provide the security you need but also the scalability and potential to be something even more in the future!

Other Investors’ Opinions

Sometimes just listening to your fellow investor’s insights and opinions on a particular project is enough to discern which projects are going to succeed and which aren’t. After all, every IDO project relies on the support of its investors!

Finding projects with a great number of investors and enthusiasts who are confident about their potential, is just as important as finding a project with a great use-case! Thus, it only makes sense to invest in projects with a dedicated following and investors who are confident about their potential in the market!
This is why Initial DEX Offering launchpads that do more than just housing IDO projects are so important in this industry. Launchpads and projects themselves that evoke the enthusiasm of investors are essential in ensuring that groundbreaking projects in the industry don’t fall victim to lack of funding and community engagement! 

Final Thoughts

These are just some of the patterns you should look out for when you’re trying to find the best IDO projects in the industry. While looking for these enterprises could be arduous, there are allies in the industry that ensure that when you do find the project of your dreams, the only thing that you’d worry about is how much you’d stake in it!

So, whether you’re an investor who’s looking for projects that will bring you consistent profits, or an enthusiast who relishes supporting grassroots projects that hold the potential to be the next big thing in the industry, these factors and patterns will help you decide which projects to put your money on, and which not to!