Initial DEX Offering (IDO)
(Redirected from Initial DEX Offering)
- Similiar to a IEO but then on a Decentralized Exchange (DEX) instead of a centralized one.
- UMA was the first to do one (29-4-2020):
"The derivatives protocol will deposit 2% of its token supply along with ~$535k in ETH into Uniswap available for the public to purchase. The sale, known as an “Initial Uniswap Offering” will officially begin at 15:00 UTC on Wednesday, April 28th.
With the launch of UMA’s Initial Uniswap Offering, we’re seeing the emergence of a new liquidity framework for privately funded DeFi projects. By using a permissionless liquidity protocol like Uniswap, projects can allocate a portion of their raise to bootstrap liquidity and anyone can participate in the sale. This helps projects distribute tokens to their community members. The only thing required for launching a new token on Uniswap is the capital to back it.
With 100M UMA in total supply, the initial offering will value UMA at $0.26 per token with a diluted market cap of ~$26.67M –– UMA, short for Universal Market Access, is living up to its name with the low price point. As noted by Placeholder Partner and UMA investor, Chris Burniske, the offering is priced at the same valuation given to seed investors."
- From DeFi Weekly (12-9-2020):
"Initial Uniswap Offerings - this is probably the worst form from multiple angels since it: requires teams to put up just as much capital as they have, sell their tokens much cheaper than they should be, creates a violent price run up due to the steepness of the bonding curve used, allows snipers to profit and dump on retail and has a very tiny supply float when usually executed."
