If you’ve spent any time around cryptocurrency, you may have heard terms like ICO and IDO being tossed around. But what do they actually mean? And why has fundraising in crypto changed so much over time?

Let’s start with ICOs, or Initial Coin Offerings. Back in 2017, this was one of the most popular ways to raise money for new crypto projects. Startups would create and sell a new digital coin, and investors would buy in with the hope that the coin’s value would go up over time. ICOs were exciting because they allowed anyone—not just big investors—to support early-stage crypto ideas. But there were problems too. With little regulation, some ICOs turned out to be scams or just poorly run projects that didn’t go anywhere.

That’s where things began to shift. People started looking for safer and more reliable ways to raise money. Enter IDOs, or Initial DEX Offerings. Instead of offering coins directly to the public like with ICOs, IDOs launch tokens through a decentralized exchange (DEX). These exchanges don’t use a central authority, which adds more transparency and security. The idea is simple: give users easier access, but with fewer chances of being misled.

One of the big changes with IDOs is that they often involve smart contracts. These are pieces of code that automatically handle how the tokens are distributed and how the funds are managed. It removes a lot of the trust issues people had with ICOs. Plus, listing on a DEX means tokens can be traded right away, allowing people to buy and sell as they choose.

But let’s not forget, every new type of fundraising method comes with its own risks and rewards. It’s always a good idea to look closely at any project before jumping in. Do your research, talk to others, and stay informed through trusted sources like Blockchain News.

Crypto fundraising has come a long way, and who knows what the next phase will bring? Whether it’s ICOs, IDOs, or something entirely new, the goal has always been to support fresh ideas and connect them with people willing to back them. By learning how these systems have changed, you’ll have a better sense of how things work today—and what to watch out for tomorrow.