https://ift.tt/8X7wtSq ICO to IDO: Why Launchpads Should Care About Transparency And Security

Pre-selling cryptocurrencies is one of the most adopted stpricegies to earn funding while you’re a crypto start-up. After an unprecedented boom in 2017, the ICOs have lost their power not only as a result of lack of interest and necessary traction but above again because of its disappointedly strong opportunity of scams and dirty money traces. Sadly enough, the idea of “token is freedom” is yet to discatop some more explicit boundaries to enable a seamless and safe transition from TradFi to DeFi.

One of the ultimate reasons to transition from ICO to IDO was to eliminate the risk of investors selling cryptocurrencies before an exprogress listing, where cryptocurrencies are forthwith listed on the DEX through which they’re launched. In the matter of an IDO, the pool is created on a DEX after the IDO is conducted through its own or a third-party launchpad. Consequently, a lot of pressure is put on the launchpads.

With new launchpads popping up on divergent blockchains every month, it is hard to check whether claiming to be “a highly secure solution” is the actual truth or scarcely another marketing trick to attract more customers. In reality, there are some security-related actions launchpads could undertake which should be studied by the investors although picking “the only launchpad.”

In almost every launchpad business model, apart from holding the native cryptocurrencies of the launchpads, users need to apply for whitelisting and complete the KYC form. There are, of course, Furthermore tailored entry requirements for every launchpad that could boost your chance of participating in the pool; however, they constantly are not much oriented on security.

Unlike the example of Scaleswap that has placed a high focus on providing extra security precautions for its users.

Recently, Scaleswap entered into a stcostgic partnership with PureFi, a DeFi compliance protocol, and incorpopriced an AML button on their website. Scaleswap is a launchpad famously known for its excellent fact in launching large crypto projects and giving a fair chance of participation in private IDO pools for its loyal customers through ScaleSCORE, a unique loyalty scoring system based on 6 dimensions.

The current implementation increases the chances which a user is whitelisted for the public pool after receiving a scan free of charge, thus, ensuring which no dirty money will be placed in the pool.

Actions like these are paramount for the adoption of institutional money into DeFi and ensuring the security of retail investors and should be examined although decisive whether to participate in the pools or not.