{"id":266921,"date":"2021-06-04T20:44:00","date_gmt":"2021-06-04T17:44:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/to-ico-or-to-ido-that-is-the-question\/"},"modified":"2021-06-04T20:44:00","modified_gmt":"2021-06-04T17:44:00","slug":"to-ico-or-to-ido-that-is-the-question","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/to-ico-or-to-ido-that-is-the-question\/","title":{"rendered":"# To ICO or to IDO? That is the question"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a29255c30ea3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a29255c30ea3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/to-ico-or-to-ido-that-is-the-question\/#IDO_versus_ICO\" >IDO versus ICO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/to-ico-or-to-ido-that-is-the-question\/#The_benefits_of_DeFi-ance\" >The benefits of DeFi-ance<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># To ICO or to IDO? That is the question <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>\n<p dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinspaid.com\/\"><img loading=\"lazy\" decoding=\"async\" width=\"1480\" height=\"200\" alt=\"\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/c83bd057e0c2a0a95765aacd423fe1f7.jpg\"><\/a><\/p>\n<p dir=\"ltr\">Initial DEX offerings are the new initial coin offerings. So, what\u2019s the difference between an IDO and an ICO, other than that one letter?\u00a0<\/p>\n<p dir=\"ltr\">A lot actually.\u00a0<\/p>\n<p dir=\"ltr\">In some ways, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/alexandria\/article\/what-is-an-ico\">ICOs<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/alexandria\/article\/what-is-an-initial-dex-offering-ido-and-why-do-we-need-them#toc-what-are-some-successful-projects-launched-from-idos-\">IDOs<\/a> 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.<\/p>\n<p dir=\"ltr\">While IDOs and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/alexandria\/article\/what-is-an-ieo\">IEOs<\/a> are both listed directly on exchanges \u2014 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/alexandria\/glossary\/decentralized-exchange-dex\">decentralized exchanges<\/a>, or DEXs, in the case of the former and centralized exchanges for the latter \u2014 IDOs are very much a do-it-yourself process like ICOs.\u00a0<\/p>\n<p dir=\"ltr\">One <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/alexandria\/article\/how-to-participate-in-an-ido\">big difference<\/a> between IDOs and ICOs is the amount of money raised. No one sees a 10-figure IDO matching Block.one\u2019s $4 billion ICO or Telegram\u2019s $1.7 billion raise anytime soon.\u00a0<\/p>\n<p dir=\"ltr\">Those ICOs also showed the power of the SEC, which <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly went easy on companies willing to pay fines and issue mea culpas. Block.one\u201a which raised $4 billion, paid a comparatively paltry $24 million fine. Telegram, which fought the SEC, ended up returning $1.2 billion of the $1.7 billion raised and shutting down its TON blockchain.<\/p>\n<p dir=\"ltr\">IEOs, on the other hand, are controlled by exchanges, which act in many ways like the underwriters \u2014 middlemen \u2014 which lead companies going public on the NYSE or Nasdaq through the process. In IEOs, centralized exchanges like Binance Launchpad and Huobi Prime vet the issuers, provide regulatory and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/alexandria\/glossary\/kyc\">know-your-customer<\/a> (KYC) and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/alexandria\/glossary\/kyc\">anti-money-laundering<\/a> (AML) services, and market the sales \u2014 for which they charge an arm and a leg. Unlike underwriters, crypto exchanges do not buy out and resell the tokens \u2014 in fact, more than a few IEO sales fail, despite the cost.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"IDO_versus_ICO\"><\/span>IDO versus ICO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">In both the IDO and the ICO, the token-issuer pays no direct fees to middlemen, which is much more in line with the peer-to-peer ethos of Bitcoin and its successors. That said, IDO launchpads like Polkastarter and Binance Launchpad are changing that as they become more common, but don\u2019t have nearly the cost and control of centralized IEOs<\/p>\n<p dir=\"ltr\">However, every IDO and ICO issuer is responsible for its own marketing, and each must create the smart contract used to sell tokens \u2014 including arranging any audits \u2014 and carry out its own legal vetting. This likely includes outsourcing AML and KYC compliance, as well as general securities offering registration requirements.\u00a0<\/p>\n<p dir=\"ltr\">Then there\u2019s the matter of the tokens. ICO tokens are often minted after the sale, which takes place on the company\u2019s website. That comes with a big cost, as the issuer needs an exchange listing, preferably a top centralized exchange. That can reportedly cost anywhere from $100,000 to several million dollars \u2014 which removes a significant downside to IEOs, in which the listing cost is built into the fees.<\/p>\n<p dir=\"ltr\">A benefit of IDOs is that, by their nature, the token is im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely listed on the decentralized exchange on which the offering occurred. That said, despite the decentralized finance (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/alexandria\/article\/what-is-decentralized-finance\">DeFi<\/a>) boom, even top DEXs like Uniswap or PancakeSwap have far less liquidity than the top centralized exchanges, and tend to be more difficult to use, which can keep some potential buyers away.<\/p>\n<p dir=\"ltr\">One thing that IDOs and ICOs do share is that they rely on knowledgeable community activists to vet the offerings, which either builds community and provides true decentralization, or is a serious Achilles\u2019 heel that leaves prospective buyers short on information, depending on your perspective.<\/p>\n<p dir=\"ltr\">The ICO\/IDO debate also has a fairness issue. IDOs shares are immediately tradable \u2014 there\u2019s actually no way to impose the lock-up periods frequently used by ICOs. ICOs often offer insiders and early investors favorable terms that aren\u2019t available to regular buyers. That\u2019s not doable in the confines of a smart contract controlled IDO.\u00a0<\/p>\n<p dir=\"ltr\">Which isn\u2019t to say IDOs haven\u2019t had their glitches \u2014 DeFi lending platform bZx\u2019s mid-2020 Uniswap IDO was dominated by bots that beat every other would-be buyer and jacked prices up before dumping. The DeFi launchpads handle that by limiting buyers to a pre-<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roved whitelist with a strict per-buyer maximum. But to get whitelisted, buyers must own and hold the launchpad\u2019s native token.\u00a0<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"The_benefits_of_DeFi-ance\"><\/span>The benefits of DeFi-ance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">That doesn\u2019t change the reality that hot IDOs tend to sell out in seconds. In April, OccamRazer, an IDO launchpad for the decentralized Cardano protocol showed off its chops by holding a hugely successful IDO of its own, selling 200,000 OCC tokens in just 20 seconds. Like many popular IDOs, it was massively oversubscribed, leaving the vast majority of the 150,000 would-be buyers out of luck.\u00a0<\/p>\n<p dir=\"ltr\">While IDOs are largely being used by DeFi projects, nothing is stopping centralized crypto companies from taking advantage of their advantages in cost and time \u2014 the process is a lot less intensive, making IDOs perfect for small companies.<\/p>\n<p dir=\"ltr\">One non-DeFi company that\u2019s going the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinspaid.com\/ido\/\">IDO<\/a> route is Estonia-based <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinspaid.com\/\">CoinsPaid<\/a>, a business-to-business crypto payments solutions company that offers a number of products. Most notable is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinspaid.com\/processing\/\">Cryptoprocessing by CoinsPaid<\/a>, a white label-ready cryptocurrency payments gateway that accepts more than 30 coins and 20 fiat currencies, promising the best exchange rates. Its ecosystem also includes an institution-focused exchange and OTC desk, cryptoprocessing, and B-to-B and B-to-C hot wallets audited by Kaspersky Lab and 10Guards, and a cryptocurrency explorer.\u00a0<\/p>\n<p dir=\"ltr\">Saying that security is a key in all of its offerings, Kaspersky-certified CoinsPaid noted that its business quintupled in 2020, giving it a 5% share of all global on-chain Bitcoin transactions.\u00a0<\/p>\n<p>A top global cryptoprocessing company, CoinsPaid was crowned\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/AIBCsummit\/status\/1397462562900516864?s=20\">Payment Provider of the Year<\/a> at the AIBC Dubai show last month. Having secured its position in the payments niche, the fintech is in the process of expanding its services to include decentralized finance (DeFi).\u00a0<\/p>\n<p dir=\"ltr\">Launched on June 1, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinspaid.com\/ido\/\">CoinsPaid\u2019s IDO<\/a> launched CPD, a DeFi cryptocurrency that will serve as a utility token, offering 20% discounts to B-to-B and B-to-C customers who pay in CPD. B-to-B customers get an additional 5%-20% discount when staking CPD, while B-to-C customers get 5%-30%. There is also a 10% B-to-B customer promotion. Using CPD tokens in payment gets a 50% discount on all transactions, and unspecified discounts on all future products.\u00a0<\/p>\n<p dir=\"ltr\">On the actual DeFi side of things, CoinsPaid offers a 20% staking APY, a 10%-50% CPD bonus on yield when investing through the CoinsPaid dashboard, and a monthly token burn. The company is selling 16 million of its 800 million CPD. Token swaps are available for ether (ETH), tron (TRX), Binance smart chain tokens (BSC), solana (SOL), and polkadot (DOT).\u00a0<\/p>\n<p dir=\"ltr\">Offering coming later this year include a CPD loyalty system and a media site in Q3, with a DeFi dashboard scheduled for Q1 2022.<\/p>\n<div style=\"background-color: #f0f0f0; padding: 8px 21px; font-weight: bold; color:#253137;\">Learn more about <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinspaid.com\/\" style=\"color: #253137\">CoinsPaid<\/a><\/div>\n<div id=\"post-content\">\n<p><span style=\"font-size: 12px; color: rgb(169, 169, 169);\"><span style=\"font-weight: 600\">Disclaimer.<\/span> Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. <\/span><\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/to-ico-or-to-ido-that-is-the-question\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# To ICO or to IDO? That is the question &#8221; Initial DEX offerings are the new initial coin offerings. So, what\u2019s the difference between an IDO and an ICO, other than that one letter?\u00a0 A lot actually.\u00a0 In some ways, ICOs and IDOs have more in common with each other than they do with&#8230;<\/p>\n","protected":false},"author":1,"featured_media":266922,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy8xOTQxNTJhMjBhNjE0MjU5ZjA3ZmQ5YWQ5NDdlODA0NC5qcGc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75036,94976,117],"class_list":["post-266921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-ico","tag-ido","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/266921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=266921"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/266921\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/266922"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=266921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=266921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=266921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}