How does an IDO work?

An IDO is a platform for crowdfunding for any new project launched on a decentralized exchange platform using coins or tokens . Due to the project’s blockchain-based approach, people from various backgrounds can contribute.

IDO, or Initial DEX Offering, is a crypto coin (or token) offering that happens on a decentralized exchange (DEX). Unlike an ICO, however, where tokens are sold before an exchange listing, in an IDO, tokens are immediately listed on the DEX through which they’re launched .

How does an IDO work? An IDO uses a decentralized exchange (DEX) to facilitate the token sale . A crypto project provides their tokens to the DEX, users commit their funds through the platform, and the DEX completes the final distribution and transfer.

An IDO launchpad is a decentralized platform that hosts and lists down the potential projects for IDO . Investors can invest in these budding projects by buying the IDO tokens of these projects. They are mostly dependent on the liquidity pool. The liquidity pool decides the liquidity of the IDO tokens.