🤔Understanding Token Sales
Last updated
Last updated
Initial DEX Offerings (IDOs)
Early Access Token Sales (EATS).
Adaptation to Market: EATS allows token sales to proceed even when market conditions cause IDOs and exchange listings to be postponed.
Better Entry Pricing: EATS tokens are generally offered at a lower price than what is expected during the IDO.
Timing Difference: Unlike IDOs, EATS does not guarantee immediate Token Generation Events (TGEs). Instead, the tokens are listed at a later stage, allowing projects to refine their strategies and adapt to market conditions.
OTC Marketplace: One of the key features of EATS is the ability to trade allocations in the OTC marketplace before the official TGE. This marketplace provides investors with liquidity and flexibility, enabling them to buy, sell, or trade their allocations based on their investment strategy or market conditions.
Potential Future IDOs: Some projects may still conduct an IDO closer to their TGE and listing date.
The key difference between IDOs and EATS lies in timing and pricing. IDOs offer immediate token listings on exchanges after the sale, allowing participants to trade right away. In contrast, EATS provides tokens at a lower price before the official IDO, with the Token Generation Event (TGE) and listing scheduled for a later date, giving projects more flexibility. Additionally, EATS allows early trading opportunities through the OTC marketplace before the official TGE.
Magic Launchpad token sales feature 2 rounds: FCFS (First-Come, First-Served) and Pro-Rata (Fair Share):
In the FCFS round, token sales operate on a first-come, first-served basis, meaning the earlier the participation, the better the chances of securing an allocation. This round includes various pools with specific access conditions. These pools may have conditions like SQRp Points or whitelisting based on the specific project and sale. They are designed with flexibility, allowing each sale to be crafted according to the project's needs.
In the Pro-Rata round, token allocations are determined based on each participant's deposit relative to the total amount deposited in the pool. The larger the deposit, the larger the share of tokens. After the pool closes, any unallocated funds are refunded if the full deposit could not be used for token allocation. Pro-Rata round ensure a fair distribution by calculating allocations proportionally, making it a balanced and equitable round for all participants.
Open to All: Allocation is based on the size of the deposit relative to the total deposits made by all users in the pool — the larger the deposit, the larger the allocation. Deposits can be made up to $25,000 USDT.
Whitelisted Pools (Customized for Specific Users): These pools are reserved for specific users and may have conditions such as SQRp Points or whitelisting, depending on the project and sale. The structure is flexible and tailored to meet the needs of each project, allowing the pool to be customized according to the project’s requirements.
