IDO – Initial DEX Offering
An IDO (Initial DEX Offering) is a newer fundraising method where a project launches its token directly on a Decentralized Exchange (DEX) such as Uniswap, PancakeSwap, or Raydium.
This is like a crypto launch event on a decentralized marketplace, where tokens become immediately tradable.
How it works:
1. Partnership with a DEX Launchpad – The project applies to list on a launchpad platform connected to a DEX.
2. Token Sale on the DEX – Investors can buy the token directly from a liquidity pool using cryptocurrencies like ETH, BNB, or USDC.
3. Instant Trading – As soon as the sale starts, buyers can trade their tokens on the DEX without waiting for a centralized exchange listing.
Pros:
Faster access to trading compared to ICOs.
Decentralized process with no central authority holding the funds.
Usually involves liquidity pools, which make it easier to buy and sell tokens after launch.
Cons & Risks:
Still risky—prices can be extremely volatile right after launch.
Smart contract bugs or poorly planned liquidity can lead to losses.
Some IDOs can be manipulated by bots, making it hard for regular investors to get in at a fair price.