Initial DEX offerings are the new initial coin offerings. So, what’s the difference between an IDO and an ICO, other than that one letter?
A lot actually.
In some ways, ICOs and IDOs have more in common with each other than they do with initial exchange offerings, which have more than a few features of the traditional initial public offering of stock markets.
While IDOs and IEOs are both listed directly on exchanges — decentralized exchanges, or DEXs, in the case of the former and centralized exchanges for the latter — IDOs are very much a do-it-yourself process like ICOs.
One big difference between IDOs and ICOs is the amount of money raised. No one sees a 10-figure IDO matching Block.one’s $4 billion ICO or Telegram’s $1.7 billion raise anytime soon.
Those ICOs also showed the power of the SEC, which generally went easy on companies willing to pay fines and issue mea culpas. Block.one‚ which raised $4 billion, paid a comparatively paltry $24