Crypto glossary
IDO (initial DEX offering)
An IDO (initial DEX offering) is a token sale held on or through a decentralized exchange, where the token can start trading right after the sale ends.
In an IDO, a project sells part of its token supply to the public through a decentralized platform rather than through a centralized exchange or its own website. Buyers usually commit stablecoins or a network's native coin in a smart contract, receive the new tokens, and the project uses part of the proceeds to seed a liquidity pool so trading can begin immediately.
IDOs became popular around 2020 and 2021 as a cheaper, permissionless alternative to IEOs. Many are run through launchpads that select projects, cap individual allocations and require participants to hold or stake the launchpad's own token to qualify, sometimes with KYC.
Because almost anyone can launch one, quality varies widely. Common problems include bots buying most of the supply, sharp price drops as early buyers sell, poorly audited contracts and outright rug pulls, so vesting terms and team transparency deserve close attention.
Example
A project sells 5% of its supply in an IDO at $0.10 per token, raising $500,000, and adds part of it with new tokens to a DEX pool that opens for trading minutes later.
