IDO (Initial Dex Offering) is a method of fundraising that pools funds from retail investors. Blockchain startups often use this as a means of securing financing.
The rise in IDO’s popularity is closely tied to the development of the decentralized finance (DeFi) market. Essentially, it involves the initial token offering on a decentralized service or the debut of a startup on a platform.
In essence, IDO functions as crowdfunding, collecting funds from investors to invest in a launching project. These projects are commonly referred to as launches, and the platforms facilitating IDOs are known as launchpads.
Launchpad is an online platform enabling investors to acquire cryptocurrency from new projects before they become publicly available. These platforms assist startups in conducting crowdsales, allowing investors to purchase tokens at a minimal price.
Allocation, in the context of IDO, represents the share or quantity of tokens an investor receives in exchange for their investment in the project. This amount is part of the total token supply designated for distribution among investors as part of the offering