Decentralized Fundraising

Decentralized fundraising is a new financing method allowing project creators to raise funds in a decentralized manner. In the same way that start-ups receive capital before launching, projects using the decentralized fundraising process can receive funds both from institutional and individual investors. Unlike an initial public offering (IPO), investors never own any equity in the project. A major difference compared to classic fundraising is much lighter legal requirements, which makes the whole process easier. By participating in decentralized fundraising, investors receive tokens proportionally to their investment. These tokens play a key role in the new applications and protocols built.

Initial DEX offerings

An initial DEX offering (IDO) is a fundraising process whose purpose is to finance DeFi projects using decentralized exchanges as an alternative to centralized exchanges that involve heavy and permissioned fundraising processes. IDOs offer new projects the opportunity to create and list their token to finance their future business.

To perform an IDO, projects create a public coin on a DEX and receive funds from various investors. IDOs are the decentralized versions of initial exchange offerings (IEOs) where crypto projects launch their token and raise funds via a centralized exchange.