New DeFi, blockchain, and technology projects offer their token or coin by the ILO (Initial Liquidity Offering) at Unicrypt Network.
What is the diffirent between ICO and ILO?
There is no difference as a basic function. But there are differences in the method they use.
An initial coin offering (or ICO for short) is a crowdfunding technique that blockchain projects use to raise capital and create a new cryptocurrency. The ICO market was thriving in 2017 and 2018.
As a result of many projects being scam/rug, IDO (Initial DEX Offering) has emerged as a new solution. A certain amount of money collected in IDO is collected in a pool automatically. The coin begins to be traded on a specified DEX.
The ILO (Initial Liquidity Offering) platform offered by the Unicrypt Network is becoming more popular for new projects.
Unicrypt Network launchpad is designed to offer DeFi projects an alternative to platforms like PolkaStarter or TrustSwap pads that impose stringent requirements for applications.
Unicrypt has made it necessary to create a certain amount of liquidity pool( at least 30%) for every project that will make a presale (ILO).
This measure prevents the project team from withdrawing all liquidity without informing the investors. It is also known as rug pull.
Since it is decentralized, every project can make its own presale using the platform.
In addition, Unicrypt launchpad has features that give investors confidence. Audit and KYC. Unicrypt cooperates with some organizations that do smart contract auditing and KYC.
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In this way, projects that make audits and KYC from the organizations Unicrypt collaborates with, are specified in the launchpad.
But some of the projects that have audit and KYC also made scam-rug pulls. Therefore, there is always a risk, even if the project has an audit and KYC.