Initial DEX Offering (IDO)
A token launch held on a decentralized exchange, where buyers trade against a liquidity pool instead of a central seller.
An IDO launches a token straight onto a decentralized exchange. The project seeds a liquidity pool, and anyone can buy from the moment it goes live—no exchange approval, no gatekeeper. Trading is permissionless from block one.
Speed and openness are the draw. A project can launch in hours rather than negotiating a listing.
That openness invites abuse. With no vetting, IDOs are a favorite vehicle for rug pulls: a team seeds a pool, lets buyers in, then yanks the liquidity and disappears. Check whether liquidity is locked before buying.
Related terms
A crowdfunding method where a project sells a new token to the public to raise capital.
Initial Exchange Offering (IEO)A token sale run through a centralized exchange, which vets the project and sells tokens directly to its users.
Decentralized Exchange (DEX)An on-chain venue where smart contracts let users swap tokens directly from their wallets, with no custodian.
Liquidity PoolA pot of tokens locked in a smart contract that traders swap against, with prices set by a formula.