2. What are the issues
Current issue of IDO Market
Due to explosive growth of DeFi market in 2020, the popularity of DeFi Platform to be utilized as initial funding model has also grown. Along with ICO and IDO, a new term IUO (Initial Uniswap Offering) was created as IDO of Uniswap offered a lot of benefits to start up blockchain projects and equal opportunities to many individual investors.
But a lot of IDO platforms in current Blockchain ecosystem including Uniswap do not offer the most optimized environment for individual investors to invest in initial blockchain projects. For example, small number of specific large scale Venture Capitals (VC) are monopolizing funding and liquidity in initial stage of DeFi projects.
Not only by specific VCs, but there are many cases that developers or related influencers are also monopolizing the initial fundings. Even if the projects are opened to Whitelist, the opportunity is opened in specific period of time that the opportunity is not given to all the investors.
If the distribution is executed through the mining, the reality is that large scale investors receive the most tokens in most cases. Such cases like Uniswap or Pancakeswap that the liquidity is added by the developer team, as soon as the
Not only the problems of initial funding method in DEX platforms, as the awareness of Decentralized platform and userbase increase, additional problems such as high service fee and network congestion became serious.