What is an IDO? | Launchpad Tutellus

In this post, we will tell you what is an IDO within the Tutellus Launchpad and why it is a great win-win investment opportunity for Tutellians. The ability to launch and fund crypto projects supported by the community is now a reality!

1. What is an IDO?

An IDO, Initial Decentralized Exchange Offering, is the event through which we can create, market and invest in new utility tokens in a decentralized manner. In other words, it is the tokenization of the project itself through a launcher (the Launchpad). In other words, an IDO is the IPO of the crypto world in a decentralized way and with many more advantages.

Supporting nascent (and higher risk) projects has its potential rewards. Every IDO lists a discount price, IDO Price, which is much lower than the starting price (TGE Price). Here we already observe that our investment can make a 2x-5x (reference, each IDO decides its margin between IDO Price and Market Price).

We will always find the IDO price indicated on the Launchpad. However, the starting price, TGE Price, will be found in the AMM (Sushiswap), which is the CEX or AMM where the token will be deployed. The starting price of the AMM will be indicated by the project team and from there it will be the market that will define its price.

2. Where do IDOs come from?

We could say that the IDO comes from the famous ICOs; public token sales with no decentralized liquidity behind them. The evolution towards IDOs through DeFi services means that we do not depend on Exchanges or third-party companies to give the token liquidity: anyone can be a liquidity provider (LP holder) and all the liquidity of the token is found in liquidity pools.

Of course, that also allows divestment in an open 24/7 market through pools.

3. When do I receive the tokens I have purchased on the IDO?

It is normal for many to be interested in receiving their tokens as soon as possible, but the IDOs in Tutellus always incorporate vesting mechanisms (approx. 12 months, although it depends on each project) with which there is a progressive release of tokens (in each block). Vesting serves to protect the price of the token against possible sales, something that is necessary, especially in the most incipient moments or when there are large increases. If you want to know the advantages of staking read this post. Or find out how to farm the TUT token here.

You can see the history of tokens that we have launched through the Tutellian community in the Launchpad. As you can see, the revaluation multiples are important. However, if you are interested in entering an IDO, you will have to do your own analysis, with all the information that we provide and that we post in the project's own section within the Launchpad. From Tutellus we never give investment advice: "we provide data and yours are the decisions" :-)