New to the world of crypto and considering which different products to put into your crypto portfolio? Or maybe a veteran willing to try something new aside from holding crypto and trading derivative products? We can recommend IDOs as an exciting avenue!
Bitcoin was the very first step in the decentralized world, and it can be argued that it was the first to give the idea of DeFi (decentralized finance) a shape. However, DeFi spread as a concept with the inception of Ethereum in 2015. The Ethereum blockchain popularized smart contracts and decentralized apps (dApps) as core parts of DeFi.
A DEX or decentralized exchange is a type of dApp, where cryptocurrencies are exchanged between counterparties without the presence of intermediaries. You may have heard of IPOs (initial public offering) and ICOs (initial coin offering)- the first where a traditional company lists its stock on a public exchange, and the second where a company raises funds for their project by selling cryptocurrency. Another similar term is an IDO, or an initial DEX offering.
Initial DEX offerings allow decentralized fundraising for crypto projects, ensuring both security and transparency with blockchain. However, just like any other investment, with IDOs too you need to understand the particular projects you choose, along with picking a trusted platform that earns you significant returns. Today, we’re here to help you with the second one.
The Pencils Protocol ($PDD) with a TVL (total value locked) of $322.3 million in mid-September, 2024 is a decentralized platform offering “auction services for blockchain-native assets and RWAs, along with unified and leveraged yield aggregation services for users to maximize asset utilization,” as per the team. Let’s learn more about how it benefits you, as an investor!
IDOs and IEOs: the difference
Before getting into the Pencils Protocol, a little more background into IDOs.
So IDOs are initial DEX offerings, while IEOs are initial exchange offerings. They are both methods of fundraising in the crypto market, which is why a comparison between the two can help you understand the significance and value of IDOs as an investor.
As an investor, we hope this comparison has helped you better understand the appeal of IDOs.
Best IDO launchpads of 2024: the Pencils Protocol
The Pencils Protocol is our pick as one of the best IDO launchpads to keep an eye on. Pencils maintains a partnership with Scroll, a relatively new zkEVM (zero-knowledge Ethereum Virtual Machine rollup) designed to scale Ethereum and process transactions off-chain. After processing said transactions, Scroll generates proofs that attest to the validity of these transactions and submits them to the Ethereum mainnet for records.
This EVM compatibility makes sure users have an elevated experience while they interact with the Pencils Protocol, along with the security standards of the Ethereum mainnet. The Pencils Protocol is all about fair-launch projects and offers different technologies to achieve that, namely proof-of-human logins, privacy tools, compliance features, and of course, the Scroll zkEVM to ensure scalability. The dApps created are scalable and compliant, along with being community-oriented. As we mentioned above as one of the USPs of IDOs, the Pencil Protocol also focuses on encouraging active community engagement by rewarding participation, and promising an overall fair experience.
On that note, the Pencils Protocol has introduced the Initial Progressive Ownership (IPO) model for new projects approaching launch, which rewards participation and contribution. This translates to a high degree of community engagement. Further, beyond being a launchpad, Pencils helps new projects completely utilize Scroll’s technologies. In fact, the protocol offers innovative launch types to fit a wide range of demands. There are exciting events and other opportunities that are offered by different projects, so investors can have kind of a fun shopping experience.
Overall, this IDO platform highlights innovation and community involvement, both qualities we consider to be essential for an ideal IDO platform for the investors. What’s more, the Pencils Protocol has reportedly provided 1000% ROI to the investors so far in 2024!
The $PDD token gives holders a number of benefits across eight tiers, which include early access to projects and valuation rights. The rewards and token distributions are divided into three seasons, with the third in progress at the moment. The many rewards include Pencils (the core reward points system on the Pencils Protocol, translating into many benefits) Scroll marks, EigenLayer points, token airdrops, and more!
The advantages of the Pencils Protocol don’t even end there. Users can now access products and services like swaps, lending/borrowing, yield farming, staking, and more in a low-slippage and low-gas environment with Pencils!
There are a few other popular IDO launchpads that you may take a note of, including Seedify and GameFi. Let’s take a look at a direct comparison of all three so you can understand how they differ:
However, when all’s said and done, you must conduct research on your own end before you pick an IDO platform as an investor. Therefore, read more about the Pencils Protocol and find out about the other IDO launchpads, and make your own choice!
We wish you good luck on your investing journey!