How Does the “Whitelist” Process Function in Some IDOs?
The whitelist process is a pre-screening mechanism where potential IDO participants must complete certain tasks, such as KYC (Know Your Customer) or social media engagement, and register their wallet address. Only addresses on the approved list are allowed to participate in the token sale.
This is used to manage demand, ensure compliance with regulations, and prevent automated bot purchases.
Glossar
Whitelist Process
Procedure ⎊ The Whitelist Process is a formal, multi-step procedure by which individuals or entities secure eligibility to participate in a restricted event, such as a token pre-sale, Initial DEX Offering (IDO), or a private derivative offering.
Pre-Screening Mechanism
Procedure ⎊ A Pre-Screening Mechanism is a formalized, systematic procedure implemented by launchpads or exchanges to evaluate the suitability and quality of a digital asset project before it is granted access to a public token sale or derivative listing.
KYC
Verification ⎊ KYC within cryptocurrency, options trading, and financial derivatives represents a suite of due diligence procedures employed to ascertain the identity of participants and assess associated risks.
IDO
Formation ⎊ This mechanism represents the initial public offering of a new token, typically facilitated through a decentralized exchange platform rather than a traditional centralized entity.