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Initial DEX Offering (IDO) Meaning

A token launch conducted on a decentralized exchange (DEX). Unlike an ICO where the project handles the sale themselves, or an IEO which happens on a centralized exchange, an IDO happens through "liquidity pools" where tokens are sold directly to the community in a permissionless manner.

IDOs are popular because they offer "instant liquidity"-the token can be traded immediately after the sale ends. They also tend to be more accessible to smaller investors because there is often no "whitelist" or geographic restriction, though this depends on the specific "launchpad" platform being used.

The downside of an IDO is the risk of "bots" front-running the sale and the lack of a "vetting" process compared to a centralized exchange.

Investors must do their own deep research (DYOR) to ensure the project is legitimate, as the DEX itself does not take responsibility for the quality of the tokens being launched.

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