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Will participating in ID0 really make a profit without losing money? Be wary of these six risks

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ID0 "water depth", investment needs to be cautious.

Original title: " Make money & send money: summary of pithuo ID0 form "

Original author: CryptoAzrael

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I believe that everyone is no longer unfamiliar with the name ID0. The myth that the initial minimum chip is 5-10 times or even 100 times the profit immediately after listing. This project has also made many players rich. I have friends and even Spend millions of dollars to build a new studio for ID0, and achieved half a small goal in two months. Therefore, ID0 is also the easiest opportunity for ordinary people to get rich, but is it really the case?

To sum up the following ID0s that may send money to project parties and institutions.

1. Unlimited pool

Masterwork: Early play Public sale on the new platform

Rules: Unlimited investment, limited Token, fixed issue price of ID0, tokens divided according to the investment ratio.

In this case, large households will obtain a large amount of FIAT through flash loans or pledges for free. A scientist invested 50 million and took away 99% of the shares. Because the currency price is fixed, large investors only need to invest less than 200,000. Divided into 1%, it's just to join in the fun.

A one-sentence comment: the big players take all, the retail atmosphere group.

2. Infinity Pool

Masterwork: Mango\UXD

Rules: Limited tokens, unlimited input, token price based on total Input is automatically calculated.

UXD is Solana's algorithmic stablecoin project, which has received a large number of investments from top institutions, but the investment amount is probably within 5M, and more than 15% of the tokens are obtained. In the ID0 process, the total amount of tokens released is 5% of the total amount, and no initial pricing is designed. The price of a single token is obtained by dividing the total amount invested by the total amount of tokens, and then the number of tokens obtained is determined according to the amount invested by individuals. Under this mechanism, it seems that everyone is happy, and everyone has tokens to get, but it ends in a loss.

Because in ID0 In the process, with the continuous expansion of the total funds, according to the price of ID0 at that time, FDV is already about 1.5 times that of the most successful stable MKR (DAI), which is seriously overestimated. And different from other new methods, the purchase intentions of all participants in the infinite pool will be realized, so unless there is a project party doing MM (market value management), the situation that no one takes over the order can only let the currency price fall, and the final result will not be the same. It was so popular that it was cut in half immediately after the market opened.

One sentence comment: In a world where everyone is injured, only institutions and project parties enjoy the joy of others carrying the sedan chair.

3、LBP

Masterwork:GuildFi

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Rule: The project party sets the starting price, and the specified time increases or decreases the price according to whether someone buys it, and there is no limit to the number of participants. LBP auctions are designed to circumvent traditional ID0 With the characteristics of big players taking all and a small number of participants, it is possible for all participants to buy the initial token, but it is full of loopholes.

·Maximum profit for the initial release:According to the rules, the price of the first block is the initial price designed by the project party, which is the benefit The biggest thing is that scientists will increase the price significantly by increasing the gas fee and all other methods, directly buying the personal hard cap, and taking advantage of the trend to increase the price.

·Extremely easy to trade: Follow-up people can only wait for time to pass in the process of participation in an attempt to lower the chip price, but in fact the project Fang only needs a small buy order to keep the price in the range he wants.

·Price anchoring (lifting the sedan chair): At the same time, the mechanism of LBP conceals the value anchoring done by the project party in order to increase the valuation evil deeds. For example, the initial price of GF's LBP is 1U, and the FDV at this price has surpassed the absolute number one YGG in the guild field. The valuation of guilds relies heavily on the total value of the Vault. In contrast, GF has no assets in the vault at this time, and the price at the time of LBP is already at a serious premium.

Mutual cutting of leeks: At the same time, LBP allows retail investors to compete with each other during the auction process, rather than in the secondary market and the project side In the game, in the process of LBP participation, with the change of participation quota and amount, the mentality of the participants will also be constrained by the numbers, and they want to get the lowest price, but they are afraid of being preempted by their predecessors. In fact, it has been clearly arranged by the project party. As soon as the price is lower than expected, a small purchase order will immediately increase the price, which is easy and enjoyable. In the end, the price of chips obtained by retail investors has been calculated by the project party.

In the end, when I got into the office, GF broke badly and cut it in half.

Summary in one sentence: everyone except the project party and VC are injured world. Your game is only for the project party and VC to carry the sedan chair, and the participation price has long been included in the profit by VC.

4. Dutch shoot

Masterwork: ABC series ;

Rules: Set the starting price, reduce the price according to time, and the total amount is limited

This kind of auction is neutral compared to the previous designs A few, but the problem that needs attention is that in the Dutch auction process, the game you need comes from two points

Current price: Generally speaking, the project party will set the price very high, and can only wait for the pool to drop passively. However, during the waiting process, it is necessary to pay attention to whether other players rush away. Empty

·Gas game: When the price enters the ideal range, it usually enters the reasonable price area of other players. It has completely evolved into a Gas war, and some players even spent more Gas than the cost of the previous price range in order to grab the current price

The final result is likely to pay more than expected

Summary in one sentence: retail game, V god profit

5. False white list ID0

Representative work: ELVANTIS

Rule:Whitelist can enter ID0 , the number of released Tokens is small, and there is no guarantee that everyone can grab Tokens.

This kind of situation usually happens in the popular game Token quota snap-up of the game. After having the whitelist, it is only the permission to enter, and the project party does not guarantee the quota .

Therefore, some players spent a lot of effort and even money to get into the whitelist and enter ID0. In the blink of an eye, the ID0 pool was quickly snatched up by scientists. Not enough to cover your cost and time.

Summary in one sentence: Scientist YYDS

6. Private placement quota

Representative works:POT, BZZ, CHIA

Rules: The family has the final say.

You should have encountered many projects that have private equity releases early on, and some retail investors can also participate, but this kind of quota that does not have strong contracts usually has huge risk.

·False Quota: This kind can be seen a lot every year.

Card Quota: Generally, private placement quotas are released from institutions to the retail market, but can institutions release them in time after obtaining the quota? It is unknown for retail investors, and there is even a bad case of an organization smashing all the injured Tokens first, and then handing them over to retail investors at a low price. This kind of behavior is not limited to institutions, and many project parties will also adopt the same means.

Long release period: Combining with the previous article, the private placement quota usually has a very long release cycle, more than one year, and it has not been obtained in the initial offering In the case of sufficient profits to cover the principal, encountering 914 and other market fundamentals plummeting or entering a bear market may even lead to making ends meet.

Anti-pit guide

See the rules: all ID0 Projects will have clear rules to see if there are pitfalls.

Calculation of valuation: Similar to projects like GuildFi, no matter how good the fundamentals are, you need to refer to the market value of other similar projects , if the valuation reaches more than 50% of similar projects at the initial stage, then you need to consider whether to continue to participate at this time. After all, the follow-up profit margin is less than 2 times, and you may be buried if you don’t pay attention.

Calculation cost: Refer to the above one to calculate the cost and profit margin of your own participation, and fix the price ID0 Generally, the calculation is based on 5 times the set price. With reference to the current practice of 20% release, the return of capital can be guaranteed in the first round, but if the profit is less than 5 times, it is recommended not to participate.