ICO, IEO, or IDO? Finding the Right Crypto Fundraising Method
With the meteoric rise of blockchain startups, a major question looms.
How do these projects secure the funds they need to get off the ground?
Selecting the right fundraising strategy is a foundational decision that can make or break your launch.
In this article, we break down the three most common fundraising options:
- Initial Coin Offerings (ICOs)
- Initial Exchange Offerings (IEOs)
- Initial DEX Offerings (IDOs)
Explore the pros and cons of these offerings, specifically with regard to marketing and compliance in the industry.
Contents
Why Fundraising in Crypto Needs a Rethink
Fundraising in crypto isn’t as straightforward as it used to be. Today, startups face multiple hurdles:
- Trust – The crypto space is still haunted by past scams and failed projects.
- Compliance – Regulatory uncertainty remains a challenge, particularly in regions such as the UK.
- Visibility – Standing out in a saturated market requires more than just a whitepaper and a Telegram group.
Traditional venture capital often doesn’t fit crypto projects. This is due to high expectations for equity, control, and ROI metrics that don’t align with decentralised models.
As a result, many blockchain founders are turning to token-based funding, which empowers their communities while providing a runway for growth.
What is an ICO (Initial Coin Offering)?
The ICO was the trailblazer for crypto fundraising. Popularised in the mid-2010s, ICOs allow you to raise funds directly from the public by selling project-specific tokens.
Advantages:
- Direct Community Access – Build grassroots support from early backers.
- Full Control – No intermediaries, no gatekeepers.
Risks and Drawbacks:
- Regulatory Scrutiny – Many governments keep a close eye on ICOs due to their unregulated nature.
- Trust Deficit – Post-2017, the term “ICO” can raise eyebrows due to a history of rug pulls and vaporware.
Relevance
Despite its reputation, ICOs can still be viable for well-prepared teams with transparent plans and airtight compliance strategies.
What is an IEO (Initial Exchange Offering)?
An IEO takes place on a centralised exchange. They act as a middleman between your project and your investors. The exchange also vets your project, handles KYC/AML compliance, and facilitates the token sale.
Benefits:
- An exchange’s backing provides you with legitimacy and increases trust in your crypto project.
- You have a built-in user base by tapping into an existing, active investor community.
Considerations:
- Exchange Fees – Listings and partnerships often come with significant costs.
- Loss of Control – Projects must meet the exchange’s criteria and timelines.
Challenges
For Crypto projects, partnering with exchanges can be complicated by local advertising bans and compliance restrictions. The vetting process can also be opaque and competitive.
What is an IDO (Initial DEX Offering)?
You launched your IDO via a decentralised exchange (DEX), allowing your project to launch tokens permissionlessly. The process is faster and doesn’t rely on central authorities.
Key Strengths:
- Faster, Permissionless Launch – Deploy and distribute tokens almost instantly.
- Global Accessibility – No geographic restrictions, appealing to borderless communities.
Risks:
- Investor Risk – Lack of due diligence and KYC can lead to scams.
- Technical Barriers – Requires significant technical know-how and community engagement.
Trends
IDOs are becoming the go-to for DeFi-native projects that prioritise decentralisation and speed. Nevertheless, marketing and regulatory issues still present a challenge.
Side-by-Side Comparison
Criteria |
ICO |
IEO |
IDO |
| Control | Full | Shared | Shared |
| Regulatory Risk | High | Moderate | Varies |
| Trust Factor | Low (DIY) | Higher (Exchange) | Community-driven |
| Audience Access | Requires marketing | Built-in audience | Depends on DEX |
| Speed to Market | Fast | Moderate | Fast |
How to Choose the Right Method for Your Crypto Project
There’s no one-size-fits-all. Start by asking:
- What’s your priority? Speed to market, audience scale, or credibility?
- Who are your investors? Retail traders, DeFi purists, or institutions?
- Do you have community support or technical capabilities?
- What does your marketing strategy look like? Especially in places where crypto ads are still banned on platforms like Google.
Matching your method to your team’s strengths and your market conditions is essential.
The Marketing Must-Haves for Any Fundraising Method
Whichever path you choose, marketing will make or break your raise. To stand out, you need:
- SEO and Web3 Content Strategy – Rank for key terms early and build search trust.
- Influencer Campaigns and Social Hype – Spark organic excitement and community engagement.
- Compliance-Led Creative – Especially in the UK, marketing needs to walk a fine line.
This is where working with a Web3-focused agency like Blokpoint makes all the difference. We understand crypto-native channels and UK-specific restrictions, helping you get seen without getting banned.
Conclusion
There is no “best” fundraising method. You only need the one that best aligns with your project’s goals, resources, and audience. Whether it’s an ICO, IEO, or IDO, your decision will shape how the market perceives you.
If you’re launching a crypto project and want to make sure you’re seen, trusted, and compliant, Blokpoint is here to help.
Let us create your go-to-market strategy, from visibility to community. We’ve got you covered. Contact us today.
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