IDO (Initial DEX Offering)
In short: An IDO (Initial DEX Offering) is a token sale held through a decentralized exchange, usually via a launchpad built around one.
An IDO (Initial DEX Offering) is a token sale held through a decentralized exchange, usually via a launchpad built around one. Buyers send funds to a smart contract instead of to the project team, and the contract distributes the new tokens when the sale ends.
Why it matters
An IDO lets a project raise money and start trading in one step, often by using part of the funds to seed a liquidity pool on the DEX. Anyone with a compatible wallet can usually join, although some launchpads add whitelists, allocation limits, or identity checks. The trade-off is weaker vetting than a traditional listing, so failed projects, sharp price swings after launch, and outright scams are real risks. Reading the contract, checking the team, and confirming whether liquidity is locked are basic steps before taking part.
Example
A new DeFi project announces an IDO on a DEX launchpad. During the sale window, participants connect their wallets and commit a stablecoin. When the window closes, the smart contract sends each participant their share of the new token. Part of the raised stablecoins is paired with tokens in a liquidity pool, so trading can begin as soon as the sale is over.