Initial Decentralised Exchange Offering (IDO)

Mars Panda and PancakeSwap

Since the Mars Panda Token (MPT) will be listed on PancakeSwap soon, we have decided to focus on initial decentralised exchange (DEX) offerings, or commonly referred to as IDO, in this article.

Projects and Fundraising

There are so many cryptocurrency and blockchain projects in the market or developing at the moment with so many varied use cases. A commonality running through most projects though is that they require some sort of financial incentive to keep developers and contributors engaged. However, not all projects can rely on donations or contributions from angel investors. More often than not, external funding will be required quite early on in a project’s lifespan.

A variety of fundraising options exists for developers but it is difficult due to the amount of competition out there. Some projects specifically avoid funding from banks and venture capitalists (VCs) as the process can be both time-consuming and have low probabilities of success. “Pre-mining” or minting tokens of a project before launch and keeping them in a treasury is also possible but is often frowned upon by the community as it favours founders over community members.

These constraints lead to private sales, followed by initial offerings to retail investors as the common route of fundraising for most cryptocurrency and blockchain projects.

Initial Decentralised Exchange Offerings

An IDO is a type of decentralised and permissionless crowdfunding platform to raise funds in the crypto space.

It involves a project launching a cryptocurrency or token via a DEX. This is a type of crypto asset exchange that depends on liquidity pools where users can swap tokens, including cryptocurrencies, tokens and stablecoins. USDT/ETH is a liquidity pair that is usually available on DEX.

IDOs are the successor of other crypto fundraising models, including initial coin offerings (ICOs), and initial exchange offerings (IEOs). Offering better and immediate liquidity at every price level due to its mechanics, IDOs are popular with new projects and startups keen to launch a token and have immediate access to funds.

Comparison with other Public Offerings

IDOs are different from IEOs, which occur on centralised exchanges (CEX) such as Binance.

IDOs are also different from ICOs, which are the cryptocurrency space’s equivalent to initial public offerings (IPO) and popularly used on the Ethereum blockchain as a fundraising mechanism during the ICO bubble in 2017–2018.

The similarity between IDOs and IEOs is that projects can raise funds with the help of the exchange’s customer base and launch trading for their token shortly after.

Benefits of IDOs

When a project launches a token through a decentralised liquidity exchange, it enables the project team to receive venture capital before launching the actual project. Projects issuing IDOs receive financing from individual investors; however, unlike IPO, investors in IDOs do not own any equity in the project. This allows the project team a tool for engaging their communities in an economy that both enriches their products and services, while allowing them to make smart business decisions regarding their assets with full autonomy.‍

IDOs offer several benefits that make them more attractive than ICOs and IEOs. These include immediate liquidity, immediate trading and lower costs for listing; all essential attributes for small and nimble projects.

As IEOs on a CEX are usually more onerous when compared to IDOs, many projects prefer to start off by listing on a DEX. Examples of these onerous conditions include:

requiring the project to pay a significant sum of money for listing or offering a portion of the tokens to the exchange,
prohibiting the project from listing their token on competing exchanges, and/or
having limited control in the parameters of a project’s token sale.

In contrast, IDOs provide quick liquidity with little to no slippage through available liquidity pools in a DEX. It has relatively cheaper listing costs, and similar to IEOs, it allows instantaneous trading.

Additionally, IDO provides a fair fundraising methodology for both developers and investors. ICOs, despite their initial popularity, suffers from third-party discrimination, vulnerability to theft and human error and a lack of privacy. In comparison, developers retain control of their project with IDOs while investors are able to purchase project tokens anonymously at a reduced cost and potentially enjoy significant returns when the tokens commence trading on the DEX.

Another benefit of IDO is that token buyers and holders’ coins are instantly secured on their wallet and private keys, greatly reducing the risk of malicious actors and human error.

The Mars Panda Advantage

Although participating in IDO through DeFi platforms requires a learning curve, most IDOs sell out very quickly, depending on the project’s vision and use cases. The project token will also be listed on the DEX after the sale ends.

Mars Panda is a unique project and will probably be one of the few platforms in the region to offer a complete lifestyle experience in DeFi, NFTs, gaming, and e-commerce.

Join our exciting ecosystem by purchasing MPT in our upcoming Mars Panda IDO on PancakeSwap. Embark on your cryptocurrency investment journey with us and be a part of the future.

The future is now, and the future is Mars Panda.

About Mars Panda

Mars Panda is a complete eco-system which consists of:

• Games, Social Media and Ecommerce Aggregation

• Yield farming DeFi

• Mars Panda game with NFT game elements

• NFT Marketplace

We aim to fuse mainstream eCommerce and Gaming to the crypto world of NFTs and DeFi, on one seamless, unified platform.

Find us at:

Legatus Global Pte Ltd is an entity that has obtained a regulatory exemption under the Payment Services Act (“PSA”) for digital payments token services. Legatus Global is commissioned to handle the issuance of Mars Panda Token (MPT) as well as the KYC/AML during the private sales and distribution of tokens to private investors. Legatus Global is also handling the process for private sales and distribution.