The rise of cryptocurrency has paved the way for the creation of fundraising models. These fundraising models are used as a way to attract investors and raise funds for the business platforms. There are many fundraising models that were created in the past, such as initial coin offering, security token offering, initial exchange offering, initial farming offering, initial DEX offering, etc. Among these models, the IDO token fundraising model is the most preferred one by business platforms in the crypto space.
Initial DeX offering or IDO token launches cryptocurrencies or tokens into a decentralized liquidity pool where the investor can trade or swap effectively and also the investors who receive these rewards via decentralized liquidity pools do not own equity in the business platform. Thus, it makes it an effective fundraising model to adopt and raise funds for businesses. This fundraising model is very suitable for businesses that are growing on a small scale and startups. This fundraising model is also very effective in attracting investors, thus, making it an ideal choice for startups.