{"id":8268,"date":"2025-11-03T13:43:32","date_gmt":"2025-11-03T13:43:32","guid":{"rendered":"https:\/\/paybis.com\/blog\/?post_type=glossary&p=8268"},"modified":"2025-11-03T13:43:33","modified_gmt":"2025-11-03T13:43:33","slug":"initial-dex-offering-ido","status":"publish","type":"glossary","link":"https:\/\/paybis.com\/blog\/glossary\/initial-dex-offering-ido\/","title":{"rendered":"Initial DEX Offering (IDO)"},"content":{"rendered":"\n

<\/a>What is Initial DEX Offering (IDO)?<\/h2>\n\n\n\n

Back in 2017, Initial Coin Offerings (ICOs) were the most common way for crypto projects<\/a> to raise money. However, ICOs often lacked transparency and left investors exposed to scams. IDOs emerged as a more decentralized, accessible, and transparent alternative.<\/p>\n\n\n\n

Unlike ICOs, where tokens were sold privately or through centralized<\/a> platforms, IDOs use automated smart contracts on decentralized exchanges. This means token sales happen publicly, with instant liquidity and minimal barriers to entry.<\/p>\n\n\n\n

<\/a>How an IDO Works<\/h2>\n\n\n\n

Here\u2019s a simplified breakdown:<\/p>\n\n\n\n

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  1. Project preparation<\/strong>: A new crypto project creates a token and partners with a decentralized exchange that supports token launches.<\/li>\n\n\n\n
  2. Liquidity pool setup<\/strong>: The project and the exchange set up a liquidity pool<\/a>, usually pairing the new token with a popular cryptocurrency like ETH or USDT.<\/li>\n\n\n\n
  3. Public sale<\/strong>: Investors can buy the token directly through the DEX as soon as the IDO goes live.<\/li>\n\n\n\n
  4. Immediate trading<\/strong>: Once purchased, tokens can be traded instantly on the open market, unlike ICOs where investors often had to wait. <\/li>\n<\/ol>\n\n\n\n

    This system ensures that token buyers not only get access during the sale but also benefit from immediate liquidity.<\/p>\n\n\n\n

    <\/a>Why IDOs Are Popular<\/h2>\n\n\n\n

    IDOs bring several advantages compared to older fundraising models:<\/p>\n\n\n\n