Initial Liquidity Offering (ILO) Services: The New Fundraising Model in the Crypto Space

The global market has empowered the market to arise startups that are providing solutions to challenges are now seeking to raise funds for their startups through Initial Liquidity Offering (ILO) Services from the investors who are interested to fund new and innovative projects. ILOs’ are new fundraising models those fund startups and other projects by using DeFi based Decentralized Exchanges to sell the tokens. Latest reports say that ILO’s are overtaking Initial Coin Offering (ICOs) by a substantial worth.

However, the emergence of ILOs caught many by surprise, and projects that were preparing for an ICO or initial exchange offer (IEO) to launch their tokens decided that they have to approach Initial Liquidity Offering services.

The success story of a newly released token is not when it is launched, it is when the buyers and sellers utilize the coin and is said to be liquid in the exchange.  The newly issued tokens are used to create a liquidity pool that allows Decentralized exchanges with Automatic Market Maker facilitating to buy and sell the tokens by permitting anyone to buy a token without being an endorsed investor.

Your tokens have instant markets in the form of system-enabled programs in the decentralized exchange which will pay value for your token. The AMM should be backed with a pool of capital known as a liquidity pool to pay the value. This liquidity reserve is usually presented in the form of stable coins. Here the ILOs play a vital role by providing a new token to buyers who agree to fund the liquidity pool by ensuring the token is eye-catching to new buyers as well the AMM can work effectively.

In the process of Initial Liquidity Offering, many investors are looking for ILO platform development services that can provide customized solutions.

Why ILO?

In the Initial Liquidity Offering development services, liquidity funders receive new tokens in exchange for liquidity that they fund for AMM to work with new tokens. As there is a risk of purchasing new tokens, liquidity is delivered by the stablecoins. The liquidity pool of a token can be distorted if token holders sell many new tokens through AMM to receive stablecoins found in the pool. 

ILO is the best option to launch new tokens as it ensures a market ready ecosystem for the token release.

The importance of Decentralized financial services is gaining popularity and provides market opportunities for anyone with an idea and persistence. However, the blockchain space is not easy for startups to navigate, and a lack of leadership could destabilize them in ways that are not under consideration.

As such, this concept of an Initial Liquidity Offering (ILO) can also be referred to as Initial DEX Offering (IDO), an Initial AMM Offerings, and Initial DeFi Offerings. Flexibility is the major reason where new tokens are created instantly and released in the market bestowing to the investors’ demand. 

Our expert team has vast experience and will guide you through the entire initial liquidity offering development process.

Companies that Launched ILO Tokens

Earlier this year, DeFi Token TrustSwap launched an ILO for its SWAP token and currently has a market cap of over $ 50 million. 

bZx had listed its BZRX token on Uniswap a month earlier, an asset that was 10x profitable over 30 days.

Curve Finance, the DeFi team that has nearly $ 1 billion worth of ETH locked on its platform, launched an IDO for its CRV token last month.

UMA (Universal Market Access) uses Ethereum Blockchain to allow developers to create valuable artificial assets on the Ethereum Blockchain. It offers benefits such as lucrative online transactions, immutable smart contracts, and real-time tracking of token prices. 

In April 2020, the Universal Market Access (UMA) project sold 2 million cryptocurrency tokens on the Uniswap DeFI platform. 

Ravecoin listed its crypto tokens on the Binance decentralized exchange platform in June 201. Furthermore, this project was integrated with the latest Binance Smart Chain (BSC). Most of the investors exchanged gift cards by purchasing Ravecoins. Binance Coin (BNB) traders used Brave wallet to exchange them for Ravencoin. Raven Utility Tokens will be used in Artificial Intelligence (AI) to train developers.

GraphLinq (GLQ) ILO was successfully run on the Uniswap DeFi platform in March 2021. It was only open to investors for 2 days. The tokens were purchased by interested investors for the Ether (ETH) cryptocurrency. GraphLinq platform is looking for developers with no programming skills to be able to perform operations and transfer assets on the blockchain network with a combination of on-chain and off-chain operations.

How Initial Liquidity Offering (ILO) Works?

• The entrepreneurs will announce the public sale of tokens on DeFi exchange such as Curve Finance, Bancor, IDEX, Kyber, Uniswap, etc.
• The additional details like the date/time of the ILO will be shown to the investors on the digital cryptocurrency exchange.
• Investors will know the hard and soft capitalization targets that entrepreneurs want to achieve with their ILO.
• The supply of ILO will be almost complete once the entrepreneur reaches the maximum goal of their project.
• Interested investors can join the ILO with a minimum of cryptocurrency in a compatible digital wallet.
• They can buy valuable tokens with recognized cryptocurrencies by processing peer-to-peer transactions on the blockchain network.  
• Liquid funds on DEX will allow trading cryptographic tokens after investors make an initial deposit.
• Investors should be aware that an entrepreneur can block his liquidity for a certain period to facilitate the initial launch of the project on the market.
• Liquidity will be increased by liquidity providers (LPs) burning and trading their tokens for a fee. 
• Liquidity Providers constantly monitor investor activity and regularly manage activities on the decentralized exchange.

Benefits of ILO

An Automatic Market Maker (AMM algorithm is used to keep the cost of the token economical and to reduce risks.

It takes very few days to achieve the market cap like hard and soft capitals by the entrepreneurs. Investors will Launch an ILO platform and earn goals achieving returns when the price of the token rise.  

There is a lot of paperwork with different guidelines and policies set by the central authorities when choosing ICOs and IEOs. Launch an ILO that will quickly enter the markets when requirements are met by the DeFi-based decentralized exchange platforms.

Entrepreneurs can end their DEX fundraising campaign at any time. This is better than ICOs, where centralized exchanges have complete control over token trading and transaction processing.

Future of ILOs

There is a strong belief in the revolutionary potential of ILOs where the investor’s optimism shows by locking billions of dollars in various DeFi exchanges like Uniswap, Curve Finance, etc.

Entrepreneurs are very much interested and rushing to the DeFi team to launch an ILO platform and own innovative projects. To raise a huge amount of funds in a short time Initial Liquidity Offering Platform plays a vital role quickly without limitations.

As there are various DeFi exchanges on Ethereum blockchain entrepreneurs also have many options as they can launch their ILOs as per their wish based on the data provided by DeFi Pulse.

Going forward, the focus should be on the scalability of DeFi decentralized exchanges to handle large volumes of investor transactions and avoid unnecessary changes in cryptocurrency prices.

As the centralized exchanges try to dominate the industry continuously, but DEXs are very immune to phishing and hacker attacks without any mediators.

 If regulators adopt friendly guidelines and rules for the initial liquidity offering platform development, it will increase your credibility and align with the popularity of ICOs and IEOs in the market.

Investors choosing ILO instead of ICO and IEO is an important decision with many obstacles that include legal, financial, technical, and strategy. A crypto project cannot be created from scratch, and every project worthy of its name usually goes through a long maturation period, during which a plan is created, group up, develop new products, and, in some cases, new technologies are developed. If you want to modify an already ongoing project of this kind to make it possible to launch an ILO platform, the path can be expected to be difficult.

Initial Liquidity Offerings (ILOs) can be effortlessly accompanied on the DeFi based Decentralized exchanges (DEX) such as Uniswap. Here there is a huge number of investors who are interested to buy cryptocurrency tokens at a high value.

Choose Shamalatech for ILO platform development services

Shamalatech is a pioneering DeFi based development company with a strong background in developing and deploying DeFi and blockchain projects. As the recent developments of ILO have sparked our experts to initiate initial liquidity offering development services to deliver customized initial liquidity offering platform based on business requirements. Our dedicated business development team informs clients about the latest trends and developments of the fundraising models. 

We fulfill your dream by listing your ILOs on the popular DeFi exchanges to accomplish the massive fundraising objectives for upcoming entrepreneurs. 

Call us to know about our initial liquidity offering development services and lock your ILO platform development services with our leading company.