ICO vs IDO: Cryptocurrency’s Fundraising Evolution

by CryptoCubes 26 апреля 2023
The topic of cryptocurrency attracts the attention of a huge number of people. Many see it as a quick way…

ICO stands for Initial Coin Offering. It is a way to raise funds for a cryptocurrency project by selling tokens in exchange for other cryptocurrencies or fiat money. IDO stands for Initial Deposit Offering, which is similar to an ICO but offers participants the option of depositing their funds into a bank account instead of buying tokens directly from the company issuing them (in this case, our IDO).

How do ICOs and IDOs Work?

An Initial Coin Offering (ICO) is a fundraising method that trades future crypto coins for cryptocurrencies of the immediate, liquid value. ICOs are often used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies such as Bitcoin.

An initial coin offering (ICO) is a means of crowdfunding centered around cryptocurrency, which can be a source of capital for startup companies. In an ICO, some quantity of newly issued tokens or coins is sold to investors in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum. Tokens sold as part of an ICO may have rights attached to them; these rights might include voting rights within the company using them or being able to use those tokens on their platform once it launches.

The Pros and Cons of ICOs and IDOs


  • ICOs are a great way to raise money for a project. They don’t require you to give up equity or control over your company, which can be attractive for many entrepreneurs.
  • ICOs allow you to reach a global audience with just one campaign and get feedback from thousands of people who may have never heard about your product before.


  • The lack of regulation means that investors might not be protected when they invest in an ICO or IDO. There have been cases where scammers have taken advantage of this situation by offering fake coins or tokens on the market and stealing money from unsuspecting buyers who buy these “coins”.
  • Examples of Successful ICOs and IDOs
  • ICO: Initial Coin Offering
  • IDO: Initial Fundraising through Cryptocurrency

As you can see, there are a lot of similarities between ICOs and IDOs. However, both have unique features that set them apart from one another. Let’s take a look at some examples of successful cryptocurrencies that have been launched via these two methods:

Regulations for ICOs and IDOs

What is ICO?

ICO stands for “Initial Coin Offering.” It’s a way to raise funds for a cryptocurrency project by selling tokens or coins. The process of an ICO is similar to that of crowdfunding and IPOs (Initial Public Offerings). The main difference is that instead of shares, you get digital tokens or coins in return for your investment.

The first ever ICO was held by Mastercoin in 2013 where they raised $500K worth of Bitcoins (BTC) in exchange for their Mastercoins (MSC). Since then many other cryptocurrencies have followed suit including Ethereum which raised over $18 million during its ICO campaign back in 2014!

In conclusion 

ICO and IDO are two fundraising methods used in the cryptocurrency industry. ICO, or Initial Coin Offering, is a way for new cryptocurrency projects to raise funds by selling tokens or coins to investors. IDO, or Initial Decentralized Offering, is a similar approach that involves Ethereum-based token sales where investors receive ownership rights over specific amounts of newly created crypto assets. Both methods have their advantages and disadvantages, and it’s important to weigh them carefully before deciding which one to use for fundraising. As with any investment opportunity, it’s important to do thorough research and exercise caution before investing in ICOs or IDOs.

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