Types of token sales are explained: IDO, ICO, IFO
By Artem Khomenko 2841 28 Oct 2022
The token sales boom has triggered different types of token pre-sales, each with its own specifics and features.
We have structured the explanations for each type of token sale so that information can be useful in case of your future participation in such kind of events:
IDO (Initial DEX Offering) is launched from a decentralized exchange (DEX). Usually, in this format, as soon as the token is listed, it can immediately be traded in an available liquidity pool. We also published an article about the best IDO platforms, where TOP 5 launchpads are presented in terms of profitability. The full list of platforms can be found on Cryptorank.io.
IEO (Initial Exchange Offering) is a token sale model that is held on a centralized crypto exchange. Usually, traders get the opportunity to participate in the sale for holding or staking the native token of the exchange, as well as in a regular lottery. The most popular platforms for IEO at the moment are Huobi, FTX, GATE, KuCoin and others. Statistics of projects that have entered the market are also available on Cryptorank.
ICO (Initial Coin Offering) is a type of initial token sale performed by a specialized accelerator. Such a token sale is an early stage of investment, and the listing of a coin often has to wait from three months to several years. The largest ICO launchpads are Coinlist, Republic, and Tokensoft. We have also prepared a material about Coinlist, which shows the profitability of participation in sales and the prospect of future events.
INO (Initial NFT Offering) is a sale by an NFT project at the lowest price. Sometimes INO even takes place as part of the initial NFT mint, where users create an asset on their own by paying a commission and a declared cost. These events take place on launchpads, which often list tokens of NFT-related startups. Crypto exchanges often collaborate with authors and artists and that’s why they launch many INOs on their own marketplaces.
IGO (Initial Game Offering) is the initial sale of a native token of a game. There is no particular difference from IDO, ICO or IEO, and is often launched as part of these events.
IFO (Initial Farm Offering) is a type of token sale on a decentralized exchange where users get the opportunity to participate if they farm tokens of the DEX platform. Traders provide liquidity in a particular pool, for which they are rewarded with tokens of a future project. Pancake Swap is the most popular DEX for IFO procedure. The token sale is only available to those who stake or farm CAKE tokens on the platform.
SHO (Strong Holder Offering) is a token sale, when funds are raised from users who hold a particular cryptocurrency. The largest SHOs are run by the Dao Maker accelerator. The platform users can buy tokens of any project depending on the amount of DAO coins in their wallets.
LBP (Liquidity Bootstrapping Pool) is a pre-sale that takes place in the auction format. The price of a coin decreases if there is no demand and rises if there are too many people who want to buy. The most popular LBP platforms are Balancer, Copper Launch.
With each passing year, the types of token sales are becoming more diverse, so study them in order not to miss details that directly affect future profits.