An initial DEX offering or IDO is a decentralized crowdfunding platform offering an opportunity for crypto projects to raise funds from all kinds of investors. The permissionless platform is one of the hottest fundraising mechanisms for blockchain and crypto projects.
The launch of an IDO involves a project launching its native token via a decentralized exchange (DEX). The project then raises funds based on how users buy or invest in these tokens, helping it raise capital for its development.
Unlike ICOs, IDOs offer higher levels of reliability and trust as DEXs perform due diligence to vet the projects launching such IDOs on their platforms. Since their reputation is also on the line, these DEXs serve as launchpads by investigating and confirming whether a project and its team are trustworthy and worth investing in.
In addition, IDOs offer higher liquidity and faster access to funds for crypto projects while democratizing access to wealth-generation opportunities for even small retail investors. The Raven Protocol was one of the first and most successful projects to adopt the IDO model for fundraising.