BCHPad - Decentralized IDO on SmartBCH
In past, I have written an article covering the smartBCH tokens. smartBCH is a sidechain on Bitcoin Cash(BCH). There are new tokens and the projects that are being launched on smartBCH every now and then.
Recently there was an announcement of the BCHPad project. BCHPad is an IDO on the smartBCH sidechain. So we are going to take a look at some of the features of the BCHPad and how it is likely to solve some of the need of the IDO on smartBCH blockchain.
First we will take a look at what is BCHPad IDO and then we will see some of benefits & issues of the BCHPad IDO.
What is BCHPad? How does it work?
Before you learn what is BCHPad, you should know what is an IDO. Basically an IDO is a platform built on the blockchains that allows the projects to raise capital from the community funding. BCHPad is an IDO aka Initial DEX offering built on the smartBCH blockchain.
Based on the project whitepaper, the BCHPad would go through the audit option for the projects before getting them into the IDO process. It would also lock the funds so that investors wont' be feeling the rug pull if the project team decides to pull out. This would make the BCHPad valuable in DeFi space and benefit the community users.
BCHPad has it's own token in the system called - BPAD. This token will be used for the community for it's reward when the project wishes to give back to it's investors in the process. BPad would be used in the DEX systems in near future too.
You can check out the BCHPad IDO : BCHPad
What are the benefits of BCHPad IDO?
BCHPad seems to have learned a lot from the experience of the previously released IDOs in the market. And it has decided to think over some of those issues and fix them in it's own release.
Here are some of the benefits of the BCHPad IDO.
- Locked Liquidity: Rug-pulls are common in crypto industry. IDOs may face that problem too. And so locking the liquidity is beneficial to investors.
- Auditing & Screening: Having a process to screen & audit the potential project from 3rd party before they can open the investment doors is a safe process.
- Decentralized: Unlike some of the CeFi IDOs here you would find decentalized IDO more safe to avoid govt & tax clutches for now.
As the IDO industry gets matured, a lot of problems would surface and hopefully BCHPad improves with the same.
What are the problems with the BCHPad IDO?
BCHPad has yet to prove it's metal as of now. It has yet to show the strong project getting the community funding. And we have yet to even see any reliable project or team working to get their own project funded.
Another issue is that BCH is struggling with the exposure. Like despite the most use cases there seems to be not a lot of takers for the smartBCH as of now. Most of the existing community users are invested into the smartBCH DEX and DeFi space. We have yet to see BCH's DeFi projects showing potential.
Conclusion
Bitcoin Cash is growing through the projects in the sidechain - smartBCH. Now the newly released DEX, IDO and the dApps are making it easier for people to adopt the BCH lot more easily. And compared to many other coins, the fees of BCH are in cents. So you are at advantage when you are dealing with any project of BCH.
If you are keeping tab on the Bitcoin Cash, you should be paying attention to some of the DeFi and dApps projects like this. I am sure you'd benefit from involvement in them.
Note: This article is not a financial advice, do your own research.
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