Behind the scenes of IDO crypto lotteries: how to increase your chances
AUGUST 04, 2022 | USE CASES
IDO offerings have taken the crypto world by storm since 2020, making it easier for smaller projects with big potential to start trading without jumping through the hoops of centralized exchanges. Generally speaking, they’re great news for smaller investors – but there is an inherent difficulty in both participating and winning an IDO crypto lottery. So how do they actually work, and what strategies can you use to get ahead of the pack?
What is an IDO crypto lottery?
First, let’s have a quick recap of what we mean by an IDO lottery here.
IDO stands for an Initial Decentralized Exchange Offering. In the past few years, crypto projects have launched tokens through centralized exchanges through an Initial Exchange Offering (IEO), or through raising funds on the project’s own platform in an Initial Coin Offering (ICO).
IDOs break through some of the limitations of the above by using a decentralized exchange (DEX) to allow peer-to-peer trading with the need for facilitation of a middle man. This doesn’t just mean lower costs; it also means that trading can essentially begin immediately, as the first purchase token becomes instantly available on the DEX. This is also good news for investors, as it means there’s a possibility of instant liquidity.
Now for the lottery part. One of the features of an IDO is limited participation and this is often determined through kind of blockchain lottery. Essentially, you need to get yourself whitelisted – approved – and enter a bid to buy the initial tokens, often at a private sale price.
The decision of that bid is decided like a lotto, hence the term crypto lottery. Sometimes there may be a tier system, where a particular stake allows you to enter a first round of a crypto lottery and a lower stake means entry into a second round with remaining tokens.
As it is part of a decentralized offering, it is of course a blockchain lottery, where blockchain provides decentralized governance instead of a centralized oversight.
What are the chance of a lottery crypto win?
As IDOs – and crypto itself – continue to attract even greater attention, it’s inevitable that it will become tougher to win your bid at a crypto lottery.
There are two barriers to surmount:
Whitelisting: you usually need to be able to pass KYC checks to be admitted into the pool in the first place.
Getting selected: there is an inevitable dependence on chance here to help you win!
However, don’t feel that it has to be left truly to chance: there’s a strategy the smartest crypto investors use to make money from IDOs, and that is quite simply to use distinct, native multiple accounts.
How do multiple accounts improve IDO lottery chances?
Registering under multiple accounts simply helps to reduce the element of helpless chance in a blockchain lottery. The more accounts you have, the greater the chances of many of them passing whitelisting checks. The more whitelisted accounts you have, the greater the probability that at least one of the ones selected in a crypto lottery will be yours.
Keep in mind that these accounts must be able to pass KYC checks, so your accounts must be legitimate with true details. Many investors pool forces with friends, families and other connections to pull together a significant number of accounts and increase the probability of a win.
Is there a risk of multiple accounts for blockchain lotteries being linked?
In a word, yes. There are ever-more sophisticated ways to verify investors’ identities, and IDOs specifically promote one of their advantages as being protected against ‘whales’ – entities already holding huge amounts of crypto – and this can unfortunately impact multi-account investors as collateral.
This is why you need to ensure that your accounts are fully separated when entering an IDO cryptocurrency lottery. The most secure way to do so is with a business stealth browser like Multilogin. By logging into our app, you can create multiple virtual browser profiles, each of which appears as a unique device to third parties. Your browser fingerprint – the sum of information websites use to build up a trackable identity for you – is completely customizable.
This means that if you’re working with real accounts based in different locations, for example, you can create virtual browser profiles that appear exactly as the real location of each of these lottery crypto accounts. For example, perhaps one is in the United States, and another is in Poland: set the appropriate proxy geolocation, language and so on.
By taking a security-first approach, you can rest assured that your business is built on a secure foundation, and you can concentrate your efforts on the most important matters: increasing your chances at IDO crypto lotteries.