An IDO is a means used by people to get the tokens of a new crypto startup. Initial DEX Offering is usually held in a decentralized exchange and the tokens are listed immediately.
During an IDO, people have to be careful to ensure that they do not fall for a scam and lose their funds. While undergoing an IDO, it is crucial to take the following precautions.
While an IDO is ongoing, it is common for scammers to create fake links and convince unsuspecting people that the links are genuine. Once the user utilizes the fake URL and sends crypto to the address, they are scammed. It is important to check if it is a genuine subscription page to avoid transferring crypto to a scam page.
IDOs are usually held in a Decentralized Exchange's launchpad. There are credible ones available such as BakerySwap and PancakeSwap. Only use those Launchpads with reputation.
Before investing in a project, it is crucial to do thorough research on it. What do you know about the team? How will the funds be used? What is the vesting period? It is common to see projects carrying out rug pull activities and leaving their users in the lurch.
It is essential to read the fine print of the IDO, which includes its terms and conditions. Sometimes, it may take a while before the user gets their tokens. The tokenomics may disclose these details.
Before buying any coin in an IDO, it is essential to note that the money could be lost. This means it is wise to only spend the amount that can be lost.