IDO Vs. ICO: what is the difference?

DeTech.World
2 min readMay 19, 2022

--

Fist let’s discuss what even are IDO and ICO.

An IDO(Initial DEX Offering) is a crypto token offering run on a Decentralized Exchange (DEX). Liquidity pools (LP) play an essential role in IDO’s by creating liquidity post-sale. A typical IDO lets users lock funds in exchange for new tokens during the token generation event. Some of the raised funds are then added with the new token to an LP before being returned later to the project.

IDOs provide a cheap and simple way for projects to distribute their tokens. IDOs have been around for a while, but they are still evolving and providing new models

An initial coin offering (ICO) is the cryptocurrency industry’s equivalent to an initial public offering (IPO). A company seeking to raise money to create a new coin, app, or service can launch an ICO as a way to raise funds.

Interested investors can buy into an initial coin offering to receive a new cryptocurrency token issued by the company. This token may have some utility related to the product or service that the company is offering, or it may just represent a stake in the company or project.

Since we got this thing straight…let’s continue by checking out the differences IDO and ICO have.

Take a look at the differences down below:

IDO Vs. ICO

Stay tuned for further updates by following DeTech.World:

Website | LinkedIn | Twitter | Discord

--

--