Overview
An IDO is a decentralized alternative to an ICO. Instead of the project team managing the sale, the tokens are launched directly on a DEX (like Uniswap or PancakeSwap) or a dedicated 'launchpad' platform.
Benefits
- Immediate Liquidity: Tokens can be traded immediately after the sale.
- Lower Costs: Projects don't have to pay high listing fees to centralized exchanges.
- Fairness: Often uses mechanisms to prevent 'whales' from buying up the entire supply.
Risks
Because they are permissionless, IDOs can be used for 'rug pulls' if the project is not properly vetted.