What are Initial Liquidity Offerings (ILOs)
Initial Liquidity Offerings (ILOs) have taken the cryptocurrency world by storm and recent reports suggest that they have emerged as the most popular option for the launch of new tokens overtaking Initial Coin Offerings (ICOs) by a significant value. The emergence of ILOs has however caught many by surprise and projects which were preparing to move ahead with an ICO or an Initial Exchange Offering (IEO) to release their tokens realized that they needed to change their approach.
For a new token to be successful it needs to be liquid (i.e., it needs buyers and sellers when it is released in an exchange). In a normal centralized exchange, while there are buyers and sellers, you may need to wait a long time to sell a newly released token. This is where Decentralized Exchanges with Automatic Market Maker (AMM) facilities come into the picture.
In a decentralized exchange with an AMM, there is always a ready market for your token in the form of a computer program which is ready to pay a price for your token. To pay this price, the AMM has to be backed by a pool (store) of wealth called liquidity pool. This liquidity pool is normally in the form of stable coins. This is where an Initial Liquidity Offering (ILO) comes into the picture. In an ILO, a new token is offered to buyers who agree to contribute to the liquidity pool which will ensure that the token is attractive to new buyers and the AMM can function.
In the ILO process, liquidity contributors receive the new token in exchange for the liquidity which they contribute to the pool for the AMM to work for the new token. Since they take a risk to buy the new token, bonuses are offered which are called yields. The liquidity contribution is normally made in the form of stable coins which have highly stable values. The liquidity pool for the token can become skewed if token holders sell a lot of the new token through the AMM to receive the stable coin held in the pool. For, the release of a new token, an ILO is a very attractive option since it ensures that the token can be released into an ecosystem where there is a ready market for it.
A sudden change in strategy to move for an ILO in place of an ICO or an IEO is a critical decision that has numerous hurdles, inter alia technological, legal, costs, and strategy. A cryptocurrency project cannot be created from thin air and every project worth its name normally has undergone a long gestation period wherein a plan was made, a team came together, developed new products, and in certain instances created new technology. When a change is sought to be made for such a project already underway to make an ILO possible, a challenging path can be expected.
On the other side of the spectrum, there are projects which are still on the drawing board and the planning process is underway. In these projects, the plans can be made with an ILO as a goal. However, even with these projects, there remains a crucial hurdle about the lack of knowledge about ILOs considering the current gap in the literature on this new development.
Need for a one-stop solution
Considering the aforementioned situation there is a need for a one-stop solution that answers all the questions relating to an ILO for the cryptocurrency enthusiasts who are planning to release a new Token into the market.
Enter ILOBOX which is a venture by experts from all the critical areas of a cryptocurrency project which include technology, legal guidance, marketing, customer service, and product development. It brings the services of the experts under one umbrella to create a one-stop solution that enables you to conduct an ILO you’re your token within 30 days from agreeing with ILOBOX.
What is inside the ILOBOX?
The ILOBOX is a turnkey solution that provides a token ready for an ILO based on the requirements of the project within 30 days. The key services which are included in the ILOBOX are:
- Development of a token based on ERC-20, DOT, Binance Smart Chain, or Tron
- An internal audit of the token
- Token and staking contract development
- Front-end and back-end design of the token platform
- API building and integration of the new token
- Uniswap release support
Third-party security audit of the project by Zokyo Labs
Marketing and community management
- Whitepaper development
- Website creation
- Logo and brand identity creation
- Paid campaign support including campaigns on social media platforms
- Maintaining community support and interaction before and after the release of the Token
Legal Guidance and Token Governance
- Evaluation of the status of the Token as a security
- Jurisdictional analysis and establishment of the base company (DAO)
- KYC and AML Policy
- Corporate structure setup, bylaws, indemnity agreements, SAFTs, pre-sale agreements, and other documents as required
Additional services which can be provided on request are
- Merchant account and bank account setup support services
- Creating a Customer Service Team for the project
- Appointment of a Chief Operating Officer (COO) for the token on a time-sharing basis
ILOBOX beyond the ILO process
The role of ILOBOX does not end after the ILO process is complete. ILOBOX supports the development of the final project for which the ILO was conducted and if requested by the token issuer also maintains a relationship with the community. The post-ILO support process is unique since it is often ignored and the community is expected to function without any voice of the token issuer.
What makes ILOBOX unique?
ILOBOX is unique as a one-stop ILO solution with experts from all necessary domains for an ILO process under one roof at an affordable price. This ensures that the ILO process can be completed rapidly without any compromise on community satisfaction and technology. The experts at ILOBOX are available for discussion about a project at any time and can provide guidance which will set your project apart.
ILOBOX prices can vary based on the scope, size, and complexity of the project. In the future ILOBOX also plans to provide the services included in the BOX as standalone a la carte services in exceptional situations. The complete ILOBOX, however, remains the recommended solution considering the wide range of interlinked services included within it.
ILOs are here to stay
With the DeFi revolution which places immense importance on yield farming to achieve growth and the large scale growth of decentralized exchanges, the ILO revolution is here to stay. Considering the market is still under development, it may be the ideal time to start your cryptocurrency project with an ILO as a part of the project. When you will think about the ILO, ILOBOX should remain as the preferred option.