IJCH - Inside JaiChai's Head (Meaning: My Warped, Personal Opinions and Musings)

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From the Author:

Salutations.

I am JaiChai.

And if I haven't had the pleasure of meeting you before, I'm delighted to make your acquaintance now.

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I invite you to interact with everyone, learn and have as much fun as possible!

For my returning online friends, "It's always great to see you again!"

  Musings About IDOs (Initial DEX Offerings)

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An IDO (Initial DEX Offering) has many advantages over prior project funding processes (i e., ICO - Initial Coin Offering, STO - Security Token Offering, IEO - Initial Exchange Offering models).

IDOs are setup to be more transparent and fair.

They avoid the stigma of premines.

Exchange approval is not required.

There are no exorbitant listing fees (aka exchange bribes/extortions).

Tokens get instant liquidity and can reside with private keys in secure wallets.

IDOs appear very attractive, no?

But standby, here's the "flip-side"...

IDOs are neither perfect, nor bullet proof.

There are still risks within the current IDO fundraising process:

This includes Control and Price Issues.

Because of high anonymity, Whale Buyers and how many tokens they are buying can never be accurately determined.

End result?

An inherent vulnerability to Whale maneuvering.

Furthermore, the bonding curve model makes it nearly impossible to calculate how much of the funds were raised strictly from the IDO; and not from the price action of the token and its trading (bonded) pair.

Submitted FYI.

In lak'ech, JaiChai

"Really Appreciate You Stopping By. Truly hope to see you again!"

And if you liked my post, kindly smash that Thumbs-Up, Tip,, Comment and Follow.

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This is YOUR TORUM INVITATION!

About the Author:

Believing that school was too boring, he dropped out of High School early; only to earn an AA, BS and MBA in less than 4 years much later in life – while working full-time as a Navy/Marine Corps Medic.

In spite of a fear of heights and deep water, he performed high altitude, free-fall parachute jumps and hazardous diving ops in deep, open ocean water.

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After 24 years of active duty, he retired in Asia.

Since then, he's been a full-time, single papa and actively pursuing his varied passions (Writing, Disruptive Technology, Computer Science and Cryptocurrency - plus more hobbies too boring or bizarre for most folk).

He lives on an island paradise with his girlfriend, teenage daughter and two dogs.

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(JaiChai 9-2-2021. Simultaneous multi-site submissions posted. All rights reserved.