If you’ve been following the crypto market for a while, you’ve probably heard the term IDO quite often—whether in news about fundraising for new projects or in discussions about investment opportunities. Today, I’d like to share a fairly deep understanding of IDO, which I believe will be useful for everyone.

To start with, IDO, or Initial DEX Offering, is a relatively new fundraising model in the crypto industry that emerged around 2020, when the DeFi market was booming. What makes IDO crypto different from older models is that it uses a DEX, or Decentralized Exchange, for transactions. It doesn’t rely on centralized platforms that may have trust issues.

Why did IDO come about? Because older models like ICO had a lot of problems—scams, project failures, and investors suffering losses. Then came IEO, which tried to improve security, but it still involved intermediaries. That’s where IDO stepped in, solving these problems through decentralization and making everything transparent via blockchain and smart contracts.

One interesting thing about IDO is that it can be verified openly. All transactions are recorded on the blockchain, so anyone can track where the money goes and where the tokens go—there’s nothing hidden. The system also uses Proof-of-Stake, which helps prevent rapid token selling, so prices don’t skyrocket in the early stage like they might in a more exuberant initial phase.

For an example of a successful project from crypto IDO, there’s SushiSwap, which raised more than 1.14 billion USD—proving that this type of fundraising platform really works.

Compared with ICO and IEO, IDO has clear advantages. ICO was the first version that sold tokens directly to investors, but it offered no real control. IEO used safer platforms, but it still had intermediaries. IDO, on the other hand, strikes a balance between security and decentralization—there are no intermediaries, liquidity happens immediately, and everyone has equal opportunities.

If you want to participate in an IDO, you need to prepare carefully. First, you must have a digital wallet (Wallet) and tokens to lock in. Second, read the details of each IDO clearly, because there are scammers who create fake websites. Third, choose a truly trustworthy Launchpad platform—if you choose incorrectly, you may end up running into a Rug Pull. Trustworthy DEXs such as Uniswap or PancakeSwap are good options. Fourth, read the token lock-up conditions in detail, because sometimes tokens may be locked for a long period even after the IDO ends.

In summary, crypto IDO has become a standard fundraising model in the industry due to its convenience, transparency, and better security. It’s an innovation that helps new projects raise money more easily and gives investors equal opportunities. However, don’t forget that you still need to study thoroughly before deciding to invest—because even though IDO is safer, risks always remain.