## IDO: How decentralized platforms changed capital raising

Crypto projects have long grown tired of traditional fundraising methods. Replacing them is the initial decentralized offering (IDO) — a revolutionary mechanism that allows token creators to interact directly with investors through blockchain without intermediaries.

The basis of IDO lies in a simple idea: the token issuer deploys a liquidity pool on the decentralized exchange (DEX), where the new asset is traded against an established token such as ETH or BNB. The result is instant liquidity, fair market pricing, and transparency of all operations through smart contracts.

### Why IDO Wins Over ICO

The main difference between IDO and traditional Initial Coin Offerings (ICO) lies in decentralization. ICO requires coordination from a central operator, while IDO is a fully automated process. Investors participate directly through cryptocurrency wallets, trading begins instantly, and pricing is determined by the market rather than the platform administration.

### Where is this happening

The IDO ecosystem is quite diverse. The most popular platforms — UniSwap, PancakeSwap, and SushiSwap — provide the infrastructure for launching new tokens. Each of them offers its own niche and audience, but the principle works the same everywhere.

### Participation Mechanics

If you want to participate in the IDO, simply connect your wallet to the DEX and exchange your tokens for the new asset. No registrations, checks, or delays — pure automation through blockchain. This makes participation accessible to everyone.

### But there are pitfalls

Not everything shines in this world. Not every IDO project turns out to be viable. Some tokens lose value shortly after launch, while others never gain traction in the market. There are also outright fraudulent schemes that disappear along with the invested funds. Before investing money, carefully analyze the project, study its white paper, team, and technical foundations. IDO is an opportunity, but not a guarantee of profit.