IDO is a new model for initial token offerings on decentralized exchanges (DEX), which allows participants to receive tokens immediately after listing on the exchange.

IDO solves problems that many projects faced when conducting ICOs. One of the main problems was that projects had to raise a large amount of funds to pay for listings on exchanges. This led to projects having to sell a large number of tokens before starting work.

In addition, many ICOs turned out to be fraudulent, which damaged trust in the blockchain industry.

Unlike ICOs, IDO allows tokens to be listed on platforms such as Uniswap, DexCoyote, 1inch, etc. without the need to raise large funds for listing. In addition, IDOs are conducted through smart contracts, making the process of token offerings safer for investors.

Within IDOs, investors can buy project tokens in exchange for other cryptocurrencies such as Ethereum or USDT. In addition, projects can set limits on the number of tokens investors can purchase.

Airdrops can be used as a way to attract new users and increase token liquidity, which can be an important factor for a project conducting an IDO.

An airdrop is a way to distribute cryptocurrency to wallets for free. It is usually used to attract attention to a new project, increase token holders, or increase its popularity.

How does an airdrop work?To receive tokens within an airdrop, certain conditions must be met, which may vary depending on the project. After the conditions are met, tokens are sent to the specified wallet address.Some scammers use airdrops for fraudulent purposes, such as collecting personal data or sending malicious software to user devices. Therefore, it is necessary to carefully study the project and its team before participating in an airdrop.

Advantages and disadvantages of airdrops:

  • Attracting new users.

  • Increasing token liquidity.

  • This is an easy way to get tokens without the need to buy them on an exchange.

  • Low-quality traffic.

  • Risk of fraud.

  • Airdrops can also be conducted on specialized platforms.

However, like any investment model, IDOs also have their risks, as do airdrops. Overall, both methods have their advantages and disadvantages, and the choice of a specific method depends on the goals of the project and its team.