There are many rounds involved in ICO development services process, but the time it takes to provide funding for a project is relatively short compared to traditional modes of fund generation, which is viewed as its USP.

In the case of IDO, by their nature, the token is immediately listed on the decentralized exchange on which the offering occurred, making it the USP.
However, both ICO and IDO share a similarity of no middlemen involvement during the offering.

What is ICO?

An ICO is a fundraising technique used by entrepreneurs or companies wanting to generate funds for their projects. ICOs prove to be the easiest option one can opt for when a fund is required.

The unregulated nature of the ICO development services makes it appealing to venture investors and banks alike. In this case, project investors receive a percentage of the coin in exchange for legal tender or other cryptocurrencies.

What is IDO?

An IDO is a project that uses a decentralized liquidity exchange to launch a coin or token. In other words, when a project launches a token through a decentralized liquidity exchange, the exchange manages the fundraising event on behalf of the project's operatives; it will be termed as an IDO.

Difference between ICO & IDO

Although ICO development services & IDO look similar in functionality and services it provides, some key differences are given below. These differences act as the point of difference when one wants to distinguish between ICO & IDO.

The Exchange Fee and Approvals

When generating funds for a project through an ICO, the project must first pay exchange fees and wait for the exchange to approve the project before it is listed. In IDO, as it is a decentralized system, there is no need to pay an exchange fee or doesn’t need anyone's approval.

Waiting Period

ICOs involve an initial waiting period, but IDOs provide immediate access to liquidity and trading.

Vetting Project

ICO needs exchanges to approve a project; in IDO, vocal community members are the ones who vet projects and tokens.

Advantages of ICO

ICO development services are simple and have low fundraising benchmark standards attracting more funds quickly.

Entrepreneurs can attract investors across the globe through ICO development services.

Most of the ICO campaigns go for thirty days, and nearly all entrepreneurs get funding at this time.

Advantages of IDO

Projects using IDOs don't have to pay excessive fees and don't need authorization from anyone because it's a genuinely decentralized service.

Vocal community members vet projects and tokens in IDO, which allows for both small projects and extensive cooperation.

IDOs provide instant access to liquidity and trading.

IDOs assist users by providing secure wallet services.