Crypto Academy

What Is IDO? – Initial Decentralized Offering Explained

Using a cutting-edge method of financing known as an Initial Decentralized Offering (IDO), cryptocurrency companies can introduce their native coin on unreliable exchanges (DEXs). IDO, a replacement for the notorious ICO, offers projects a risk-free means of funding their initial operations or future expansion. 

This article will explain what IDO is and what its benefits are. 

What Is IDO?

The Raven Protocol, the first-ever IDO, took place back in June 2019. The protocol’s developers decided to use the Binance DEX. Until the hard cap is met, trailers may purchase the token there at a set price. On most systems, this is how the initial IDOs happened.

Theoretically, this specific method of fundraising has several significant advantages, such as

Investors, though, weren’t happy. This was due to the fact that these token sales would practically sell out in a matter of seconds, giving the typical investor little chance to acquire a stake and participate. The idea that insiders and bots were snatching them up was created, and the market had to change to meet the rising demand.

IDO launchpad platforms were created as a result, and they were one of the most popular subjects in late 2020 and early 2021.  

How Does IDO Work?

After understanding what an IDO is, we will explain how one works. 

A decentralized exchange (DEX) is used by an IDO to hasten the token sale procedure. Owners of cryptocurrencies can submit their projects to the exchange, and the platform will complete token distribution and transfer. Digital contracts allow for the automation of these procedures, which take place on the decentralized ledger. When launching an ICO or crypto exchange, each DEX has its own rules.

However, there are established procedures, such as

Difference Between ICO, IEO, and IDO

Initial Decentralized Offering Benefits


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