šUnderstanding Whitelisting in IDOs
Whitelisting in the Initial Distribution Offering (IDO) context is a pre-selection process where potential investors are vetted and approved to participate in a new token sale. It's designed to ensure a fair, secure, and orderly investment process.
On this article, we will go over some generic information around whitelisting in IDOs and what you'll need to know in order to participate: š Why Whitelisting?
Fair Access: Helps prevent automated bots and unfair buying advantages, ensuring equal opportunities for all.
Enhanced Security: By vetting participants, it adds an extra security layer against fraudulent activities.
Community Focus: Rewards and prioritizes the project's active and loyal community members.
š The Whitelisting Journey
The process typically unfolds as follows:
Announcement: Projects announce their IDO and the whitelisting criteria, usually on their official channels.
WL Application: Prospective investors submit their applications, often including basic info and completing certain social tasks.
Review: Applications are reviewed against the project's criteria, such as country of residence, wallet history, or prior support.
Notification: Successful applicants are informed and receive instructions on how to participate in the IDO.
KYC Compliance: To comply with regulations, participants might need to complete a Know Your Customer (KYC) process.
Allocation: Whitelisted individuals are allocated a specific amount of tokens they can purchase during the IDO.
Participation: On the IDO day, participants buy tokens within their allocation limit, typically through a decentralized exchange (DEX).
Distribution: Tokens are distributed to the participants' wallets, marking the completion of the IDO process.
š Key Takeaways
Whitelisting is a fundamental step in the IDO process, ensuring fairness and security.
It involves several stages, from application and review to KYC compliance and token allocation.
The process benefits both the project and its community, providing a structured and equitable way to distribute new tokens. We will be releasing more specific information around the PALM IDO and what are the exact steps, in the following days!
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