ICO vs IEO vs IDO: How to buy new crypto before listing?

January 28, 2025 23 min
Daniel Bennett Twitter
Daniel Bennett
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ICO vs IEO vs IDO: How to buy new crypto before listing?
Table of contents
  • IDO vs ICO vs IEO
  • What Is an ICO in Crypto?
    • How Do ICOs Work?
    • The ICO Boom and Its Challenges
    • ✅ Pros of ICO Fundraising
  • What Is an IDO in Crypto?
    • How Does an IDO Work?
    • ✅ Pros of IDO Fundraising
    • 📛 Cons of IDOs
  • What Is an IEO in Crypto?
    • How Does an IDO Work?
    • How to Choose the Right Fundraising Method?
    • Comparison of IDOs with Other Fundraising Methods:
    • IDO vs ICO
    • Why do IDOs Stand Out as the Best Fundraising Method in Crypto?
    • Where to buy new crypto before listing
    • The lock-up period in token sales
Table of contents
  • IDO vs ICO vs IEO
  • What Is an ICO in Crypto?
    • How Do ICOs Work?
    • The ICO Boom and Its Challenges
    • ✅ Pros of ICO Fundraising
  • What Is an IDO in Crypto?
    • How Does an IDO Work?
    • ✅ Pros of IDO Fundraising
    • 📛 Cons of IDOs
  • What Is an IEO in Crypto?
    • How Does an IDO Work?
    • How to Choose the Right Fundraising Method?
    • Comparison of IDOs with Other Fundraising Methods:
    • IDO vs ICO
    • Why do IDOs Stand Out as the Best Fundraising Method in Crypto?
    • Where to buy new crypto before listing
    • The lock-up period in token sales
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Securing funding is a critical milestone for any emerging crypto venture, laying the foundation for transforming innovative blockchain concepts into full-fledged projects. Crypto projects aim to raise capital by issuing digital tokens or cryptocurrencies. In the rapidly evolving world of Web 3.0, Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs), and Initial DEX Offerings (IDOs) have emerged as the most popular fundraising methods. For investors, a crypto presale is an initial phase where tokens may be offered at a lower price, before the listing on exchanges, sometimes with a bonus to early participants or strategic partners.

ICOs, IEOs, and IDOs have become efficient alternatives to traditional private funding rounds, which involve venture capitals, specialized funds, and angel investors investing significant amounts at lower valuations than public investors. In contrast, public rounds enable broader participation, allowing investors to acquire tokens before they are listed on exchanges.

If you’re wondering how to buy new crypto before listing, refer to this article to understand how these fundraising methods work and find a way to detect new coins at the token sale stage. This guide breaks down the key differences, pros, and cons of these approaches, helping you choose the most suitable approach for participating in the crypto presale. Discover how ICOs, IEOs, and IDOs work, and what sets them apart from other fundraising mechanisms. 

IDO vs ICO vs IEO

Here's a comparative table that highlights the main differences between IDO, ICO, and IEO:

Aspect

IDO (Initial DEX Offering)

ICO (Initial Coin Offering)

IEO (Initial Exchange Offering)

Platform

Decentralized Exchanges (DEXs) like Uniswap or Launchpads like Fjord Foundry

Project's own website or ICO launchpads

Centralized Exchanges (CEXs) like Binance or KuCoin

Control

Project maintains some degree of control over the process

Project has full control over the process

Exchange dictates terms and handles the process

Audience Reach

Limited to DEX users; highly accessible globally

Project's marketing determines the reach

The large user base of the hosting exchange

Security

Decentralized setup with fewer intermediaries but higher risk of scams

Low level of any security measures 

Exchange ensures security with numerous project audits

Compliance

Compliance varies by jurisdiction; less regulatory oversight

Minimal regulatory oversight; high risk of scams

Exchange enforces KYC/AML compliance and ensures legality

Ease for Investors

Requires technical knowledge of DEXs and Smart Contracts

Easy to access but prone to scams

User-friendly; integrates with exchange wallets

Liquidity

Immediate trading post-launch on DEX

Liquidity depends on project securing exchange listings

Almost immediate liquidity as tokens are listed on the same exchange

Marketing Support

Entirely the project’s responsibility

Entirely the project’s responsibility

Exchange promotes the project, leveraging its reputation

Regulatory Risk

Moderate; decentralized nature provides some shield

High risk due to lack of oversight

Relatively low; exchanges function to meet regulatory standards

Fraud Risk

Medium 

High

Low, as exchanges audit projects before listing

What Is an ICO in Crypto?

An ICO (Initial Coin Offering) is a fundraising method primarily used by blockchain companies to raise capital for developing a product or building a company. Unlike traditional funding approaches, ICOs typically bypass private rounds, allowing the public to contribute to the project directly. The raised funds are mainly allocated to product development and operational expenses. However, in some cases, a portion of money may be reinvested in marketing efforts to attract additional funding during subsequent rounds. This approach provides a decentralized and accessible way for individuals to support and invest in innovative blockchain initiatives.

An ICO resembles an Initial Public Offering (IPO) in traditional finance, as investors receive tokens representing a project share or providing some utility within the project's ecosystem. 

Investors participate in the ICO by investing in tokens during early public rounds, with the expectation of value growth once the tokens are listed on exchanges. This expectation stems from the fact that such sales are often highly exclusive, with limited access, or are invisible to the main crowd before they are officially listed, making them a rare opportunity for early adopters. Early ICOs forced investors to transfer funds to smart contract addresses manually, but later developments introduced user-friendly platforms to streamline the process. For all participants, the meaning of an ICO in crypto is straightforward: it’s a unique opportunity to obtain the project’s tokens, often at a discounted rate, before an exchange listing.

ICOs emerged in 2013 with the Mastercoin project, which raised over 4,700 Bitcoins to develop a new protocol on top of Bitcoin. A significant milestone followed in 2014 with Ethereum’s ICO, which raised approximately 31,529 BTC over 42 days, worth about $18 million at the time. ICOs continued to grow in popularity, reaching a peak in 2017 when they raised billions of dollars for hundreds of blockchain initiatives, culminating in the record-breaking EOS ICO, which raised $4 billion by June 1, 2018.

How Do ICOs Work?

The ICO process typically involves these steps:

  1. Developing the Concept, Tokenomics, and MVP
    The first step in an ICO is crafting a compelling project concept, constructing meticulous tokenomics, and, in many cases, building a Minimum Viable Product. This approach sets the foundation for further development, by clearly outlining the problem that the project aims to solve and its proposed solution. An MVP demonstrates the project's functionality, while tokenomics outlines the economic model of a project's native token. It includes total supply, allocation, utility, and mechanisms designed to create demand and sustain value. By presenting an MVP and detailed Tokenomics, the team establishes trust and credibility, demonstrating their commitment to developing a full-scale product.
  2. Publishing a Whitepaper
    Once the concept and tokenomics are finalized, the next step is publishing a whitepaper. This document serves as a comprehensive guide to the project, detailing its vision, goals, technical architecture, and the problems it addresses. It also outlines how investors' funds will be used, the token utility, and the benefits for participants. A transparent and well-crafted whitepaper is essential for establishing trust with potential investors.
  3. Deploying a Token Smart Contract:
    The crypto startup develops a smart contract, usually on secured blockchains like Ethereum or Solana, which are known for their high throughput secure transactions. This smart contract defines the rules for token creation, distribution, and other functionalities such as transfers and approvals.
  4. Announcing Pre-Sale and Public Crowdsale Details:
    The project announces the timeline and specifics of the ICO, including details about the crypto presale. During this stage, the team defines the number of tokens available, establishes a clear pricing structure, and outlines any contribution caps. This phase is essential for generating excitement and securing commitment from potential backers. Marketing campaigns play a crucial role in this stage, by utilizing social media, influencer partnerships, community engagement, and a paid advertising team behind the project maximizes visibility and attracts a broader audience to the presale. 
  5. Handling an ICO event:
    Investors can contribute through ICO launchpads or the project's official website when an ICO launches. ICO Launchpads serve as centralized platforms for promoting token sales and enhancing its credibility and security. In contrast, project websites enable independent token sales, providing more control, but less security.
  6. Distributing Tokens to Backers Post-ICO:
    After the ICO is concluded, the project distributes the newly minted tokens to those who contributed during the event. This distribution should happen according to the terms outlined by the team. Backers receive tokens in their cryptocurrency wallets, making them stakeholders in the project. After the TGE the tokens become tradable on supported exchanges.
  7. Listing Event on Exchanges:
    After the distribution process is finished the final key step is listing a token on exchanges. Exchange listings enable public trading, offering broader access to the token. Listings on major CEXs like Binance or DEXs like Uniswap increase visibility, liquidity, and trading volume.
    The timing and strategy of the listing are critical, as a well-executed launch can boost demand and drive market value. Projects often collaborate with exchanges to promote the event, leveraging marketing campaigns to generate interest. For early investors, the listing is a significant milestone, marking the first chance to trade tokens in the open market and secure profits.

The ICO Boom and Its Challenges

The 2017-2018 period marked an ICO frenzy, with more than 800 projects raising over $10 billion. While many investors saw significant returns, this era also led to the launch of numerous crypto scam projects, resulting in substantial losses for unsuspecting participants. The rise in fraudulent activities prompted regulatory scrutiny, resulting in advertising bans from platforms like Google and stricter regulations.

Since then, the ICO landscape has evolved significantly:

  • Increased Regulation: Many countries have implemented stricter regulations, including classifying some tokens as securities.
  • Shift Towards Compliance: Projects now prioritize regulatory compliance, often conducting KYC and AML procedures to verify participants.
  • Alternative Fundraising Models: Many projects have turned to IDOs and IEOs for safer fundraising due to regulatory pressures.
  • ICO Advertising Challenges: The ban on ICO ads on major platforms has prompted projects to explore alternative ways of promoting token sales.
  • Focus on Utility: Investors have become more conservative and seek projects with solid utility and robust business models rather than speculative promises.

✅ Pros of ICO Fundraising

  • Open Access: There are no barriers to participation, although KYC requirements may apply in some cases.
  • Cost-Effective: Avoids intermediaries, reducing fundraising expenses (ex: IEO fees).
  • Scalability: Potential to raise substantial capital without fixed caps.

📛 Cons of ICO Fundraising

  • High Risk of Scams: Fraudulent projects frequently raise funds through ICO as they are unable to handle an ICO on verified launchpads.
  • Regulatory Uncertainty: Legal frameworks for ICOs are still evolving.
  • High entry threshold: Participating in IDOs often requires a substantial amount of funding.

Despite these challenges, the ICO crypto model remains a cornerstone of fundraising for many crypto projects. But how does it compare to newer methods like IEOs and IDOs? Let’s explore the next-generation fundraising models.

What Is an IDO in Crypto?

Unlike ICOs which are hosted on centralized platforms, Initial DEX Offering is a fundraising method that enables crypto projects to launch their tokens directly on decentralized exchanges or fundraising platforms. IDO has gained traction as an innovative fundraising mechanism, providing projects with an alternative to traditional centralized methods to raise capital. IDOs streamline the fundraising process by leveraging the safe, permissionless, and transparent infrastructure of DEXs. 

IDO merges the accessibility of ICO while aligning with the core principles of DeFi. This fundraising option offers a simple and efficient method of raising funds, reducing the need for intermediaries. The meaning of IDO in crypto lies in its ability to offer a safer and more inclusive way for investors to participate in token sales.

Since the inception of the IDO model in 2018, approximately 2,365 IDOs have been conducted, collectively raising over $1.6 billion. These substantial figures highlight the IDO's significant impact on cryptocurrency fundraising and its critical role in fostering the development of emerging blockchain projects.

How Does an IDO Work?

Launching a project through an IDO involves a few key steps:

  1. Developing the Concept, Tokenomics, and MVP
    The first step involves defining the project's purpose, designing its tokenomics, and creating a Minimum Viable Product. This concept highlights the problem and solution, while tokenomics outlines the token's supply, allocation, and utility. An MVP demonstrates the project’s feasibility, building trust with potential investors.
  2. Issuing a Whitepaper:
    Similar to an ICO, the project team issues a whitepaper with information about the project’s objectives, technical framework, and how it plans to use the raised funds. The document explains the utility of the token and how investors might benefit.
  3. Selecting a Decentralized Exchange (DEX):
    The crypto startup selects a suitable decentralized exchange or launchpad platform to host its IDO. This involves choosing from well-established options like Uniswap, PancakeSwap, or other platforms known for supporting IDOs. 
  4. Setting up a Token Smart Contract:
    The project developers create a smart contract on a blockchain to define the Token's Rules, Total Supply, and Initial Distribution. The smart contract must comply with decentralized exchange regulations, which may include multiple audits. 
  5. Announcing the IDO Details:
    The crypto startup or platform that handles the event releases information about the IDO, including the date, token price, total supply, and vesting schedules. This announcement often includes promotional activities to generate interest and community engagement.
  6. Creating a Liquidity Pool:
    The process of launching an IDO can vary depending on the approach used:
    1. Fair Launch Model:
      In the case of Fair Launch, the token price is determined by market demand through a liquidity pool on DEX. To create LP, the project team pairs the new token with a base currency like ETH or BNB. Community members trade directly via the established pool, allowing the market to determine the token's value. This method gained traction after the pump.fun pioneered this fair launch model, which emphasizes decentralization and transparency.
    2. Launchpad Model:
      Launchpads like ChainGPTSeedify, and Fjord operate differently. Investors purchase tokens at a pre-set price through classic direct pools, whitelists, first-come-first-serve (FCFS), or Dutch Auctions (ex. Fjord). These methods are applied to determine the list of IDO participants because usually, the presale hard cap is strictly limited. These sales use smart contracts to ensure fairness and security. Listing and trading, however, occur later on a separate venue, such as a DEX or CEX, making liquidity pool setup unnecessary during the token sale stage.
      Both models have unique benefits, with the Fair Launch fostering community-driven pricing and the Launchpad Model providing a more structured approach for early investors.
  7. Launching the IDO:
    On the scheduled date, the IDO goes live, and investors can purchase tokens directly through the DEX using their self-custodial crypto wallets. Transactions are immediate, removing intermediaries and enabling a seamless token distribution process.
  8. Token Launch:
    After the IDO and TGE events, the tokens become tradable on the DEX. Early participants are often encouraged to provide liquidity to earn fees and support the project's ecosystem with their tokens in the pool.

✅ Pros of IDO Fundraising

Initial DEX Offerings (IDOs) have quickly established themselves as the go-to fundraising method in the cryptocurrency landscape, due to a range of compelling advantages:

  • Explosive Growth in Popularity: IDOs began to gain significant traction in 2019, driven by the decentralized nature of this fundraising method and the minimal to zero fees associated with launching a token on a DEX.
  • Decentralized and Highly Accessible: IDOs revolutionize the fundraising space by democratizing access and removing numerous barriers associated with centralized token sales platforms. This inclusive approach allows anyone with a compatible digital wallet to participate, significantly expanding the number of potential investors.
  • Almost Immediate Liquidity: One of the appealing features of IDOs is the immediate liquidity they provide. As soon as the IDO concludes, tokens can be traded on the DEX after TGE.

The IDO model aims to leverage the benefits of decentralized finance, providing quick access to the market without excessive regulatory and financial barriers usually associated with centralized exchanges in the traditional ICO process. 

📛 Cons of IDOs

While IDOs have transformed crypto fundraising, they aren’t without risks:

  • Volatility: Token prices can fluctuate rapidly due to immediate liquidity.
  • Scam Risks: Gaps in auditing may still allow fraudulent projects to slip through.
  • User Complexity: Navigating decentralized platforms can be challenging for non-technical users.

Despite these challenges, crypto IDOs remain a revolution in the fundraising space, offering investors and projects a decentralized, efficient, and inclusive mechanism. Unlike traditional fundraising methods, IDOs operate without centralized intermediaries. Users can acquire the project’s governance or utility tokens through automated market maker (AMM) protocols, which ensure dynamic price adjustments and seamless trading. This process has made IDOs a go-to choice for upcoming crypto projects and investors seeking early access to innovative projects. You can explore the comprehensive list of the best crypto IDOs on CoinLaunch.

IDOs have solidified their position in the crypto fundraising arena, recognized for decentralized infrastructure, cost-effectiveness, and broad investor reach. As fundraising methods continue to evolve, IDOs are set to remain a dominant method for blockchain projects in need of capital.  However, investors should still approach IDOs with caution, conducting thorough research to avoid potential risks.

What Is an IEO in Crypto?

An IEO (Initial Exchange Offering) stands as another solid alternative to the ICO fundraising mechanism. IEOs are conducted through centralized exchanges, on behalf of crypto companies that are raising funds through token sales. These offerings signify a strategic partnership between cryptocurrency projects and exchanges, with the latter expertly facilitating token sales on behalf of the project teams. 

In contrast to an ICO, where the project team independently handles the fundraising process, an IEO leverages the credibility, user base, and infrastructure of a well-established exchange’s fundraising platform, such as Binance Launchpad. This setup allows users to purchase tokens seamlessly from their exchange wallet. In an IEO, tokens are efficiently distributed to investors via a reputable centralized cryptocurrency exchange like Bybit, Binance, or Coinbase. It’s important to note that investors must be registered members of the listing exchange to participate in an IEO.

The rise of IEO in crypto

Initial Exchange Offerings (IEOs) gained prominence in 2019 as a structured and secure alternative to the unregulated ICO landscape. The rise of IEOs was largely driven by the fallout from the ICO boom, which had led to numerous scams and regulatory crackdowns. Countries like China and South Korea were among the first to ban ICOs in 2017, with Vietnam, India, and Bolivia following suit in subsequent years to protect investors.

In response, exchanges like Binance introduced the IEO model, offering a more reliable fundraising process. Binance Launchpad led the way by hosting high-profile IEOs, such as BitTorrent, ensuring projects underwent rigorous vetting before allowing investor participation. This approach marked a significant evolution in crypto fundraising, combining trust, security, and the global reach of established exchanges.

How Does an IDO Work?

To conduct an Initial Exchange Offering (IEO), a crypto startup follows a series of structured steps, similar to an ICO, but with some differences due to the involvement of a cryptocurrency exchange. Here is a detailed breakdown of the steps involved in conducting an IEO:

  1. Project Preparation:
    Similar to ICOs, a project kicks off with a well-crafted whitepaper. Prior to approval, a centralized exchange rigorously evaluates the whitepaper along with various other criteria to ensure the blockchain project meets the necessary standards for the token sale. The team behind the project must also prepare a website, build a strong and active community, and test their product before launching it.
  2. Applying for a token sale:
    Next, the crypto startup should partner with a cryptocurrency exchange that offers IEO services. Exchanges like Binance, KuCoin, and others have dedicated platforms for hosting IEOs. The crypto startup contacts a desirable centralized exchange to apply to a token sale. Choosing a reputable exchange is crucial as it can affect the future of the project
  3. Compliance and Due Diligence:
    Developers typically undergo KYC and provide a whitepaper to confirm their intentions and commitments. Crypto exchanges conduct due diligence before hosting an IEO, performing checks to verify the team’s claims. This vetting process assesses the project's legitimacy, smart contract, team credibility, and compliance with legal requirements to ensure the safety of investors.
  4. Creating a Token Smart Contract:
    The project team develops a smart contract on a blockchain that defines the token's rules, total supply, and initial distribution. The smart contract must meet the technical and security requirements set by the partnering exchange and often undergo thorough audits to ensure compliance and reliability.
  5. IEO Announcement and Marketing:
    The partnering exchange announces an IEO event, providing key details about the token sale, including dates, pricing, and any bonuses or incentives. Unlike ICOs, projects conducting IEOs benefit from the exchange’s extensive user base and promotional efforts, which significantly boost visibility and credibility. The exchange’s marketing campaigns can attract a larger pool of investors, increasing the potential for a successful fundraising round.
  6. Conducting the IEO:
    During the IEO timeline, investors can purchase tokens directly through the exchange. This process is streamlined as the exchange handles the token sale and distribution, reducing the burden on the project team.
  7. Post-IEO Token Distribution:
    Once the IEO concludes, the exchange facilitates the distribution of tokens to participants. After receiving their allocation, investors can trade the tokens on the same exchange once a trading pair for the token is added.

IEOs offer several advantages, such as increased trust due to the exchange's involvement, immediate trading capabilities, and often simpler processes for both the project and investors compared to an ICO. However, the success of an IEO still depends on the project's fundamentals and market conditions.

✅ Pros of IEO Fundraising
Initial Exchange Offerings have quickly become a preferred method for fundraising in the cryptocurrency space, offering several compelling advantages:

  • Increased Trust and Credibility: IEOs gain from the established trust and reputation of the exchanges that host them. These platforms thoroughly review crypto projects before presenting them to their users, which enhances investors' confidence in the legitimacy of the projects.
  • Simplified Process: CEXs simplify the token sale process by handling all the essential procedures such as user registration, KYC, AML compliance, and token distribution. Additionally, exchanges handle the security aspects of the IEO, safeguarding funds and ensuring the integrity of transactions. 
  • Immediate Liquidity: Tokens sold during an IEO are often listed on the exchange almost immediately after the sale, providing investors with liquidity and trading opportunities. 
  • Access to a Larger Audience: Projects gain access to the exchange's large, established user base, which helps them quickly reach a wide pool of potential investors. This increased exposure can accelerate fundraising efforts and ensure sufficient capital is raised.

📛 Cons of IEO Fundraising
While IEOs offer a more structured and reliable alternative to ICOs, they also come with some drawbacks:

  • Centralization: Despite their advantages, IEOs reintroduce a degree of centralization since exchanges act as intermediaries. This centralization can conflict with the decentralized ethos of IDOs.
  • Higher Costs: Exchanges charge fees for hosting IEOs, including a percentage of the funds raised and additional costs for listing tokens. These fees can significantly reduce the net capital available to the project, making IEOs more expensive than other fundraising options.
  • Limited Control: Projects may have to relinquish some degree of control to the exchange, as the platform dictates key aspects of the IEO, such as pricing, timing, and other terms. This could limit the project's flexibility in executing the token sale.

IEOs provide a more secure and organized framework for fundraising compared to ICOs, with added trust, liquidity, and access to larger audiences. However, they also bring challenges such as centralization, higher costs, and limited control, which projects must carefully evaluate against the potential benefits.

 

FAQ SECTION 

How to Choose the Right Fundraising Method?

  1. For Decentralization Enthusiasts:
    IDOs offer the most decentralized option, removing intermediaries and aligning with the ethos of blockchain. Projects with a strong DeFi focus might prefer this model. For investors, purchase automatization and multi-accounting are possible, but the cost of transactions may be high.
  2. For Maximum Security:
    IEOs are ideal for projects that value security and legitimacy, as exchanges act as gatekeepers and provide credibility to the token sale. Though, token allocations for investors are usually very low in the case of IEO. 
  3. For Full Control:
    ICOs grant the project team full autonomy over the fundraising process but come with significant risks for investors due to minimal vetting. However, the token allocations for investors are higher. 

Market Trends:

  • The ICO era has largely waned due to regulatory crackdowns, numerous scam cases, and investor skepticism. However, there are some signs of its renaissance today. 
  • IEOs remain popular for their structured and secure approach but come with higher costs and are less accessible to investors.
  • IDOs are gaining momentum as DeFi expands, appealing to projects with smaller budgets seeking quick liquidity. Nevertheless, they may be less accessible and user-friendly for individual investors.

Comparison of IDOs with Other Fundraising Methods:

  1. Decentralization vs. Centralization:
    Unlike IEOs, which rely on centralized exchanges, IDOs operate on decentralized exchanges (DEXs) or specialized sales platforms, giving projects and investors greater autonomy and reducing reliance on intermediaries.
  2. Lower Costs:
    ICOs often involve hefty marketing and token listing expenses, while IEOs include exchange fees. IDOs, with their DEX-based approach, eliminate many of these costs, making them more accessible to startups.
  3. Fair Access:
    IDOs utilize automated market maker (AMM) protocols to prevent price manipulation and ensure equitable token distribution, unlike ICOs, which often face issues of unfair token allocation.

IDO vs ICO

ICO (Initial Coin Offering):
ICOs can be conducted independently on a project’s own platform or through specialized launch platforms like CoinList or Legion. When hosted independently, the project team has full control over the token presale, managing everything from the sale process to token distribution. This autonomy allows for broader participation but also introduces risks such as smart contract vulnerabilities and potential unfair distribution. On third-party platforms, ICOs operate through a more user-friendly Web2 interface, offering added credibility and security measures. However, investors must still rely on the project's team to ensure a fair and secure token sale.

IDO (Initial DEX Offering):
IDOs typically take place on decentralized platforms, which aren’t always decentralized exchanges (DEXs). They can also be hosted on dedicated IDO launchpads like PolkastarterSeedify, or ChainGPT. These platforms use smart contracts to automate token sales and often allocate tokens based on users staking their native tokens. This model offers immediate liquidity and broad accessibility, allowing anyone with a compatible wallet to participate. While the decentralized structure reduces reliance on centralized authorities, it still requires strong smart contract security to protect against vulnerabilities.

Why do IDOs Stand Out as the Best Fundraising Method in Crypto?

IDOs have emerged as a leading fundraising method, offering projects a decentralized and transparent way to reach a global audience. Unlike ICOs, IDOs reduce risks like centralized control and manipulation, ensuring fairer token distribution and greater investor participation. As the crypto ecosystem evolves, IDOs continue to adapt, solidifying their position as a preferred choice for innovative projects.

Real-Life Success Stories in IDO Hosting: Jupiter and DAO Maker

Jupiter LFG Launchpad:
Despite hosting only 7 IDOs, Jupiter LFG has demonstrated exceptional success, raising a total of $221.40 million.

  • Sanctum: Raised $31.1 million, currently boasts a Market Cap of $84 million, and achieved an impressive all-time high (ATH) ROI of x4.15.
  • WEN: Raised $3.1 million, with a current Market Cap of $99 million and an astounding ATH ROI of x33.

DAO Maker Launchpad:
Known for hosting a broader range of projects, DAO Maker has facilitated 42 IDOs, collectively raising $32.39 million.

  • Lumia: Raised $3.75 million, now holds a Market Cap of $102 million, with a record-breaking ATH ROI of x292.5.
  • Alice: Raised just $100,000, yet reached a current Market Cap of $121 million and an incredible ATH ROI of x298.4.

These launchpads exemplify the power of the IDO model, showcasing its ability to generate significant returns and drive value for innovative crypto projects. Jupiter’s selective approach and DAO Maker’s diverse offerings highlight the versatility and effectiveness of IDO-focused platforms.

Where to buy new crypto before listing

There are several ways to discover and purchase new cryptocurrencies before they are listed on exchanges. Users can acquire new tokens before the official listing by participating in token presales (ICOs, IDOs, etc.) or initial exchange offerings (IEOs). Additionally, users can obtain new crypto tokens for free by taking part in crypto airdrops. As long as new tokens are often available on decentralized exchanges before they are listed on centralized exchanges, users can explore the most popular platforms for launching a new token - launchpads to find new crypto before listing.

The lock-up period in token sales

Following the presale, the token becomes available for public trading on the exchange. However, there can be cases where a lock-up period is applied. The lock-up periods can vary depending on the specific details set by the project or the platform handling the sale. Some projects implement lock-up or vesting schedules, meaning that part of the tokens can be subject to restricted access for a specified time after the launch. Such measures are often put in place to prevent selling pressure and ensure stability. Therefore, participants must review the presale terms and conditions carefully, as they may include delays in token availability.

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