Basic Concepts of IDO Crypto Presales for Beginners

Concepts frequently used in the IDO presales. It is useful to learn these concepts, especially for those who will participate in IDO for the first time.

  • Claim Token: Refers to the process of acquiring a cryptocurrency or token that has been allocated to you as a result of participating in an event such as an airdrop or a token sale.
  • Vesting: The process of distributing tokens to investors or team members over a period of time, often used as a way to ensure that tokens are not dumped on the market immediately after launch.
  • Private Sale: A stage in the token sale process where the project sells tokens to a select group of investors before the public sale or launch. Private sale investors usually get a discounted price.
  • DEX: Decentralized exchange, a platform that allows peer-to-peer trading of cryptocurrencies without intermediaries.
  • Launch on DEX: Refers to the process of listing a token on a decentralized exchange (DEX), which is a platform that allows users to trade cryptocurrencies directly with each other without intermediaries.
  • Buy/Sell Tax: Some token projects implement a tax on each buy or sell transaction. This tax usually provides liquidity to the market or reward holders.
  • Marketcap: The total value of a cryptocurrency or token based on its current price and circulating supply.
  • Token Lock: The process of locking a certain amount of tokens for a specified period of time, often used to prevent early selling by project team members or investors.
  • Liquidity Pool: A pool of funds or tokens used to facilitate trading on a decentralized exchange. Liquidity providers add funds to the pool and receive a share of the trading fees.
  • LP Lock Duration: The amount of time that liquidity providers must lock their funds in the liquidity pool to receive trading fees.
  • Renounced Ownership: The process of removing the ownership of the token contract from the project team or original creator, usually done to increase transparency and decentralization.
  • Token Burn: The process of permanently removing tokens from circulation by sending them to a burn address. This can be used to decrease the total supply of a token and increase its scarcity.
  • KYC: It is the verification of the identity information of the people/team that owns the project by a KYC firm. KYC firm will take legal action if the project owners commit fraud.
  • Audit: Expert review of the token smart contract. The deficiencies and capabilities of the contract are indicated in the report.

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