Initial Dex Offering VS Initial Coin Offering – all you need to know

Initial Dex Offering VS Initial Coin Offering – all you need to know


Have you ever thought about what is the main difference between Initial Dex Offerings and Initial Coin Offerings? Why is everybody in the blockchain technology world so obsessed with them and eager to learn all the essentials?

Before we explain the main differences, we’d like to define what is precisely IDO in the first place. Supposing that many of you are probably aware of it by now, IDO is short for the Initial Dex Offering, which refers to a type of crowdfunding in which an issuer is responsible for issuing IDO coins with the help of a decentralized liquidity platform.

On the other hand, the Initial Coin Offering is a specific type of funding using cryptocurrencies. Most commonly, when we are speaking of ICOs, we are thinking of any particular form of crowdfunding where a private ICO doesn’t seek public investment is also possible.

Now let’s see what essentials any crypto enthusiast should know regarding IDOs and ICOs, shall we?

IDO Vs. ICO – a brief explanation

To understand IDO Vs ICO better, after you’ve got all their fundamentals, it’s essential to know that IDO represents several vital benefits over ICOs beyond the decentralization ethos. Initial Dex Offerings provide frictionless liquidity, immediate and fast trading, and significantly lower listing costs that aren’t restricting users.

It’s not hard to spot that Initial Dex Offerings tend to be more open, transparent, and a great way to launch any cryptocurrency project than the pre-mined ICO models of the previous times. Founders have been rewarded with sufficient community distributors by these Initial Coin Offering models.

Opposite to ICOs, IDOs are known for their shallow market cap, following the public listing. The reason for that is the vesting period for private investors and the limited amount of money that has been raised from the IDOs, where every participant has taken a small allocation.  

What do Initial Dex Offerings and Initial Coin Offerings have in common?

To get a clear picture of IDOs and ICOs, It’s interesting to note what they have in common. Believe it or not, the main thing they both have is the reliability of the activists to vet the offerings.

That might either provide true decentralization with building a community, or it will be a weak point that will leave prospective buyers lacking information.

Main advantages of Initial Dex Offerings and Initial Coin Offerings

Another exciting piece of information to keep in mind is certain advantages of IDOs and ICOs. Here are the top three benefits you should remember:

  • They are highly stable because investors don’t receive all tokens immediately. It decreases the sell-off size.
  • A great majority of marketing efforts are shared by a project or a specific platform instead of being created from the project itself.
  • Token listing on the DEX is taking place right after the sale.

The Bottom Line

In conclusion, it’s good to know that Initial Dex Offerings are considered a more open, transparent, and fantastic way to launch a new crypto project than the pre-mined Initial Coin models from the past. These Initial Coin models have rewarded founders over sufficient community distribution.