šŸ“„Understanding 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: šŸ” Why Whitelisting?

  1. Fair Access: Helps prevent automated bots and unfair buying advantages, ensuring equal opportunities for all.

  2. Enhanced Security: By vetting participants, it adds an extra security layer against fraudulent activities.

  3. Community Focus: Rewards and prioritizes the project's active and loyal community members.

šŸ“ The Whitelisting Journey

The process typically unfolds as follows:

  1. Announcement: Projects announce their IDO and the whitelisting criteria, usually on their official channels.

  2. WL Application: Prospective investors submit their applications, often including basic info and completing certain social tasks.

  3. Review: Applications are reviewed against the project's criteria, such as country of residence, wallet history, or prior support.

  4. Notification: Successful applicants are informed and receive instructions on how to participate in the IDO.

  5. KYC Compliance: To comply with regulations, participants might need to complete a Know Your Customer (KYC) process.

  6. Allocation: Whitelisted individuals are allocated a specific amount of tokens they can purchase during the IDO.

  7. Participation: On the IDO day, participants buy tokens within their allocation limit, typically through a decentralized exchange (DEX).

  8. Distribution: Tokens are distributed to the participants' wallets, marking the completion of the IDO process.

šŸ”‘ 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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