Differences Between ICO and IDO Launchpads

Crypto projects have been fundraising for years now. Startups have been looking into Web3 to get funds, and this has been an ongoing movement that made an impact on everyday news back in 2017. Unfortunately, it was for the wrong reasons. The space was flagged and full of scams and fraud. This moment became known as the ICO boom of 2017.

Today, the space has evolved and has learned from its past mistakes. One way we see that is through IDOs, or Initial Decentralized Offerings. It is a way for project founders to raise funds from the crypto space, but instead of doing it directly, they go through a platform that is managed by a launchpad.

In this article, we are going to go through what ICOs were, how they have evolved into IDOs, and how this new model sets a better standard when it comes to safety for investors.

What Is an ICO Launchpad?

Let’s start by defining what an ICO actually is.

ICO stands for Initial Coin Offering. It was one of the first ways crypto startups used to raise funds. In an ICO, the project team does everything on its own. They build the website, decide the tokenomics, mint the token, manage the marketing, and try to grow a community around the project.

The idea is simple. You buy tokens directly from their website, and those tokens are supposed to get listed on an exchange after the TGE, the Token Generation Event. But during the ICO boom of 2017, many project founders never minted the tokens or never got them listed. People basically got robbed.

That’s why the ICO space got a bad reputation. It was full of promises but also full of scams. There was no smart contract protection, no platform to review the projects, and no system to hold anyone accountable.

A launchpad, on the other hand, is a platform built to launch projects. It provides the infrastructure, the contracts, and the process. You can’t really call something an ICO launchpad, because ICOs were projects doing it all by themselves. Launchpads came after, as a way to bring structure and safety into the space.

What Is an IDO Launchpad?

An IDO, or Initial Decentralized Offering, is when a startup raises funds through a decentralized exchange. The process runs on smart contracts, which means that everything is automated. After the Token Generation Event (TGE), the tokens are minted and distributed automatically. This removes the risk of manual errors or fraud and makes the process more secure for everyone involved.

An IDO Launchpad is a platform built specifically to launch Web3 projects using this decentralized model. These platforms don’t just handle the token sale; they also add security mechanisms, improve the user experience, and give investors better tools to discover and support projects they care about.

For example, CoinTerminal is an IDO Launchpad that removes common barriers for retail investors. There’s no KYC to get started, no staking requirements, no token gating, and all sales are refundable. You can participate in any live IDO just by connecting your Web3 wallet and using stablecoins, and you even get a chance to win our permanent $5,000 lottery, even if you later request a refund.

Check our active IDO sales here

Differences Between ICO and IDO Launchpads

Both ICOs and IDOs are fundraising mechanisms for crypto projects.

But the way they operate, and what they offer to investors, is different.

In an ICO, the project team does everything by themselves.

They are in charge of building a community, having the infrastructure to mint the tokens, and distributing them to investors. They do their own marketing. Everything.

There’s no third party involved, and this also means there are no audits.

So investors have a high chance of being scammed or robbed.

IDOs represent an evolution of that, since they’re done through decentralized exchanges using smart contracts.

While startups still need to design their tokenomics and build a community, the technical, legal, and infrastructure aspects of the fundraising process are handled by the IDO launchpad.

In other words:

• ICOs = full control for founders, no safeguards for users.

• IDOs = smart contract automation + investor protection + platform-level support.

Which Is More Secure: ICO or IDO Launchpads?

IDO launchpads are more secure than ICOs, and this is by design.

First of all, an IDO launchpad is a third party. Its reputation is built around safety.

They incorporate investor protection mechanisms, conduct due diligence, and set up rules that all projects must follow.

And most importantly, they work using smart contracts.

So the process doesn’t depend on a person or a team pressing buttons or sending tokens manually. Everything runs automatically, and it’s all verifiable on-chain.

That level of transparency and automation simply didn’t exist with ICOs.

Is Transparency Better with IDOs?

Yes. Transparency is one of the core strengths of IDOs.

Everything is handled through smart contracts and is verifiable on-chain. From how much each wallet contributed to how tokens are distributed, every detail is public. You don’t have to rely on blind trust. You can check the blockchain yourself.

Plus, many launchpads include third-party audits for the project’s smart contracts. These audits are conducted by external security firms to identify bugs or vulnerabilities before launch. It’s not just about making promises; transparency here means code, verification, and public data.

Do IDOs Offer Faster Access to Exchanges?

Yes, they do.

Because everything is automated through smart contracts, tokens are minted right after the Token Generation Event (TGE) and listed on a public exchange immediately.

There’s no delay, no need for someone to manually push the launch. The process is built to be safe and automated.

What’s Better for New Investors: ICO or IDO Launchpads?

Definitely IDO launchpads.

They are safer, and they offer a curated list of projects for you to choose from.

If you’re just starting, just pick a launchpad that matches your interests. For example, if you like gaming, choose one that supports GameFi. If you’re into DeFi, look for that. We have a blog that helps you choose the right launchpad based on your goals.

Final Thoughts

ICOs and IDOs are both fundraising models for Web3 startups. But IDO launchpads have come a long way since the scams and frauds of 2017.

The space learned from its mistakes. That’s why we have platforms built specifically to help projects launch in a safer, more structured way today.

At CoinTerminal, we are a crypto launchpad. That means we’re also a Web3 incubator, a funding platform, and an accelerator.

We help projects not only launch, but grow; and we’ve supported many in getting listed on centralized exchanges, which is a huge milestone for any startup.

That means we’re not just offering a fundraising tool; we're providing a comprehensive solution. We’re giving founders real support, real visibility, and a community that believes in what they’re building. And we’re offering investors access to the best IDOs with real potential for long-term growth.

You can check our active sales here.