$SOL $SOL

ICO (Initial Coin Offering)

Definition: A method for projects to raise funds by issuing their own cryptocurrency or tokens.

How it Works: Investors buy new tokens with cryptocurrencies like Ethereum or Bitcoin. The funds are used to develop the project.

Advantages: Fast fundraising, potential high returns for early investors.

Risks: Regulatory issues, potential scams, project failure.

IDO (Initial DEX Offering)

Definition: Token sales conducted on decentralized exchanges (DEX), such as Uniswap.

How it Works: Tokens are sold directly on a DEX via smart contracts. Investors use their wallets to buy tokens.

Advantages: Faster, more accessible sales, no need for a centralized intermediary, lower costs.

Risks: Price volatility, manipulation, project failure.

Examples on Solana

Mango Markets: Conducted an IDO for its decentralized trading platform.

Serum: A decentralized exchange on Solana that raised funds through ICO/IDO.

Investors should carefully research projects and consider the risks before participating in ICOs or IDOs.