With the increasing number of emerging DApps projects, token distribution is not uncommon. IDOs are models used by decentralized projects to share their newly minted tokens. Users can access the tokens in exchange for funds. On the other hand, funds from users are locked in the pool for the moment the token distribution lasts before they are handed over to the project. While this sharing model is quite popular, many believe it will evolve to integrate features like Initial farm offering and provide the Know Your Customer (KYC)  requirement. 
The DEX offering is a credible alternative to initial exchange offering (IEO) and Security Token Offering (STO) regarding security, accessibility, authenticity, and reliability. Token distribution is an opportunity for investors to contribute to a project by purchasing a token at its launch price. The DEX offering is well-coordinated and is not vulnerable to rug pull. 
<h2 class="p4">How does an IDO work?</h2>
DApps adopts the DEX offering to manage the processes of token distribution. DEX helps projects handle funds and investors and creates digital smart contracts. IDO is available on several blockchain networks, and it is easy to access. Many Decentralized exchanges integrate the IDO model to enhance the token sale processes. Projects can only have access to the locked after the distribution is completed. Then the DEX will transfer the token through smart contracts on the blockchain. 
However, here are common ways IDO works;
<ul class="ul1">
<li class="li2">After a verification process, a project is accepted to run an IDO on DEXs. They provide a fixed amount of tokens for a specific price, and users exchange their funds for these tokens. The tokens will be distributed to investors during a token generation event later. </li>
<li class="li2">There is usually an investor allowlist. To join the list, you may be required to execute marketing chores or provide your wallet address. </li>
<li class="li2">A portion of the funds raised will be used to open a liquidity pool using the project’s token. The remaining money is distributed to the team. After the TGE, investors can trade the token. The offered liquidity is usually locked for a set length of time.</li>
<li class="li2">During the Token generation event, tokens are transferred to the user, and the locked funds in the liquidity pool will be open for trading while the funds will be returned to the project. </li>
</ul>
<h2 class="p4">The Potential of Initial Decentralized Offering (IDO)</h2>
Token offerings have evolved to be more secure and fair for investors because of IDO. There are other types of token offering, but IDO have unique potentials that distinguish it from others;
<ul class="ul1">
<li class="li2">Investors don’t have to trade directly with a project. A reliable IDO platform with a record of successful sales will handle all required in the offering. </li>
<li class="li2">IDO helps prevent slippage and volatility by using funds locked in the liquidity pools to create liquidity after the sale. </li>
<li class="li2">Users are not required to create an account, and their personal information must be kept private.</li>
<li class="li2">It can be easily accessed by any user regardless of their experience. </li>
<li class="li2">It is easier for small projects to launch their token on DEX than a major centralized exchange. IDOs are cheap and safer for small projects. </li>
<li class="li2">An investor is not permitted to buy a large number of tokens. IDO ensures that through the anti-whale measures.</li>
</ul>
<h2 class="p1">What Are the Drawbacks of IDO?</h2>
IDO is safe and doesn’t require complex processes. The Initial DEX offering does have some limitations. This model is decentralized, compared to other models used by centralized exchanges. Some of the drawbacks of IDO are;
<ul class="ul1">
<li class="li2">Lack of Know Your Customer (KYC):</li>
</ul>
Due to the lack of KYC, offering much anonymity to users can be risky. There is no AML or KYC. When necessary checks are conducted, investors and projects are safeguarded. KYC aid in preventing money laundering and the circumvention of economic sanctions. Certain countries, for example, may not be able to legally participate in an IDO if the token is considered a security. 
<ul class="ul1">
<li class="li2">Project Due Diligence Is Lacking:</li>
</ul>
An untrustworthy project can distribute its token far more quickly through an IDO than through an IEO with an extensive, regulated exchange.
<h2 class="p4">How to Get Started With IDO?</h2>
<ul class="ul1">
<li class="li2">Ensure you use the valid link to subscribe to an IDO. IDOs are safe, but you need to avoid losing your funds.</li>
</ul>
<ul class="ul1">
<li class="li2">Choose a reliable DEX launchpad:</li>
</ul>
There are several reliable DEX launchpads that you can participate in an IDO. Choosing a reliable DEX increases your chances of getting your tokens in post-sale. 
<ul class="ul1">
<li class="li2">Know the project you are investing in:</li>
</ul>
Explore different projects before you invest. Your ability to ask questions will save you from any possible fallout. Research if the project is from a new or an experienced team. The problem is not the IDO but the DEX running it, so be careful when picking a Decentralized Exchange (DEX) platform. 
<ul class="ul1">
<li class="li2">Read the IDO terms and conditions:</li>
</ul>
IDOs are not without risks, but getting more information about the project and their token will help minimize risk. There can be a delay, and tokens can be locked longer than usual. You must get enough information. Read the terms and conditions and only accept them if you agree. 
<ul class="ul1">
<li class="li2">Be Rational</li>
</ul>
Invest the amount you can afford to lose. Tokens are rewarding, but they can be volatile. Don’t invest more than you should. Sales are risky, and DEX is not infallible as you can be a victim to rug pull. 
<h2 class="p4">Conclusion</h2>
IDOs are safe models for distributing tokens for projects. IDOs have become a standard fundraising mechanism for many new crypto initiatives due to their combination of ease-of-use, affordability, and accessibility. You’ll need a crypto wallet that can connect to DApps, such as MetaMask or Binance Chain Wallet, to enter an IDO. You’ll also need some cryptocurrency to purchase the tokens and cover transaction costs. If you’re participating in an IFO, the specific crypto you’ll need will depend on the sale, and it may even be LP tokens. You’ll need to log in to the IDO DApp after you’ve created your wallet.

With the increasing number of emerging DApps projects, token distribution is not uncommon. IDOs are models used by decentralized projects to share their newly minted tokens. Users 

What is IDO?