I guess I can just add IDO to one of my failed crypto experiences as I have experienced some failed IDOs this year. So this year, I decided to explore the crypto IDO space to see if I can make some profit, what is an IDO? The IDO stands for Independent Dex Offering, this means that you purchase a certain amount of crypto from a project before the token launches, this way it supposed to give you a chance to make some profit. For instance, if the IDO price is $0.1, and you buy some, when the token launches most times they launch at a higher price lets say at least $0.2, giving you the opportunity to making a free 100% profit. But lately a lot of projects have been abusing this and using it as an opportunity to scam IDO investors.
source
Some of us have learnt our lessons and I am not sure I will be participating in IDOs anymore, but let me give you some of my IDO experiences, some IDOs involve vesting your tokens and getting some of your tokens unlocked over a period of time, I guess this was done to prevent huge dumping from IDO investors. In as much as I got a bad experience from IDO investing doesn’t mean that people dont make money from IDOs, but I am just sharing my experience, you can do whatever you like with this information. From my experience, I won’t be participating on IDO that only allows a certain number of token unlock over a period of time, although it is done to prevent dumping, but most times it didn’t favour me, as the token will eventually dump to the bottom before the rest of the token gets to you.
Some IDOs might have a lot of hype which can be really assuring but sometimes its not usually profitable, like the lime wire IDO hype, they created a huge hype and made people who didn’t participate in the IDO feel like they were going to miss a huge opportunity. They hit all their investment goals through the IDO, but when the token launched every IDO investor was in a huge loss. The worst IDO experience I have experienced so far was with a project called helios Exchange, invested $50 into it, although I shared it with a friend $25 each and was waiting for the token launch to see if I was going to make some profit, unfortunately I went to their twitter profile and realised that they made an announcement stating they didn’t reach their soft cap goal and will be refunding all investors their money. Turns out the project was a scam and is not gong to be making any refunds, they used that as an exit strategy. This is my failed IDO experiences and I hope you learn from it and be careful in this crypto space.
