IDO (Initial Dex Offering) is a new crowdfunding model in the crypto market that became quite popular in early 2021 amid growing interest in DeFi. In 2018, 80% of all token sales in the ICO market were scams, according to a study by Satis Group LLC. IDO replaces ICO – Initial Exchange Offering (IEO) – with IDO, by a decentralized exchange like Binance DEX and Uniswap. DeFi Pulse service: at its peak on May 12, 2021, this figure reached $89 billion, now it is $67 billion.

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Golubev_Od_UA

Crynet.io (project manager), vtorov.tech (expert), ICO/STO/IEO, venture & marketing projects

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IDO (Initial Dex Offering) is a new crowdfunding model in the crypto market that became quite popular in early 2021 amid growing interest in DeFi. Therefore, it’s time to tell how this works, how it differs from both ICO and IEO. It is also worth pointing out the pros and cons of IDO, as well as evaluating the possibilities of the new crowdsale method.

Prehistory

The first ICO (Initial Coin Offering) was held by the Mastercoin protocol in 2013. In 2017-2018, the popularity of ICOs was high – in 2017, projects raised $5.6 billion, and in the first quarter of 2018 – $3.3 billion.

Under the ICO model, anyone could start selling their tokens to everyone. At the same time, the token issuer does not need to disclose his identification data, nor present the MVP, nor confirm qualifications, nor in any other way prove that issuer is a reliable developer or his project is a profitable investment. It was enough…

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