Recently, I’ve been researching various methods of crypto financing and found that there are quite a few concepts in this field. Let’s start with the most basic one: what is IDO? Actually, IDO stands for Initial DEX Offering, which is a token issuance model conducted on decentralized exchanges, without relying on centralized exchanges.

Besides IDO, there are several other common financing methods worth understanding. ICO is the Initial Coin Offering, similar to angel investing in the blockchain space, where project teams raise funds by issuing digital tokens. IEO, or Initial Exchange Offering, is conducted through exchanges, which handle the review and sale process, making the project more credible and the risk relatively lower.

There are also some newer concepts, such as IFO, which involves forked tokens based on mainstream tokens. Retail investors can use mainstream tokens for pre-mining to obtain derivative tokens at almost zero cost. ILO requires locking digital assets for a period, similar to fixed-term financial products. IGO emerged after the 2021 GameFi boom and is mainly used for game token issuance, allowing players to get whitelist spots and airdrops before the game launches.

Each financing method has its own characteristics and risks. Investors should thoroughly understand the project background and market environment before participating, and avoid blindly following the trend.