How Do IDO Launchpads Work?

Written by
Catherine Andrea Gerdez
Published on

August 21, 2025

Updated on

August 21, 2025

If you’re entering the DeFi space in crypto, there might be many projects popping up every single day, and you’re probably wondering which ones to choose and how to choose them effectively. While crypto users are always encouraged to do their own research, there is an easier way to select projects: choosing from a list of already vetted projects.

This is exactly what an IDO launchpad offers. In today’s article, we’re going to learn more about what that is, how it compares to other forms of project launching in the crypto space, what makes a good one, what you need to participate in one, and why you should.

What Is an IDO Launchpad?

An IDO launchpad is a platform designed especially for startups to get funded in Web3. Investors can buy tokens to support a project of their choice, and at the same time, project founders can get funding from people interested in their projects worldwide.

Is an IDO Launchpad a Type of Crypto Launchpad?

Yes, a crypto launchpad is a platform designed to support early-stage crypto projects. A launchpad is basically the Web3 equivalent of a startup incubator or business incubator.

An IDO stands for Initial Decentralized Offering. This is when a project offers its tokens,  which are virtual assets representing the project broken into millions of pieces, through a decentralized exchange in order to get funding.

How Do IDO Launchpads Work?

The way IDO launchpads work is by selecting projects that have long-term potential and offering them to curious and savvy crypto investors.

An IDO launchpad coordinates the actions of both project founders and crypto investors. On one hand, they need to design a platform that is easy to use, safe, and filled with a list of projects that offer great potential to investors. On the other hand, they need to provide funding and support for founders, who must meet specific criteria in order to be accepted.

How Is an IDO Different from an ICO or IEO?

Understanding IDOs

An IDO is an Initial Decentralized Offering. This is the process where a crypto project mints tokens representing the value of their project and offers them to crypto investors in order to get funding. This happens through a decentralized exchange.

A decentralized exchange operates using smart contracts, which are executed automatically with no middlemen. This also means that the cost of launching is cheaper, the potential returns for crypto investors are higher, and the safety level is much better.

What also happens with IDOs is that they’re usually the first way a project gets funding. This is because they don’t have private rounds with big investors; it’s open to the public first and then listed on an exchange after the TGE (Token Generation Event).

What is an ICO?

An ICO means Initial Coin Offering. This was the trend during the 2017 bull market, where founders would just build a website and offer tokens by themselves. While this sounded exciting and easy, it led to many rug pulls (founders running away with the money) and scams. After this period, the crypto space understood the need for safety mechanisms so investors could trust project founders again.

What is an IEO?

An IEO is an Initial Exchange Offering. This is when a project offers tokens on a centralized exchange, like Binance or OKX. This is a big milestone for a crypto project;  it brings more exposure and more funding, usually from venture capital. However, this is usually a later step because getting listed on an IEO is expensive, the criteria are stricter, and the MVP needs to be more developed.

There are also private rounds before an IEO, which means that the tokens tend to have a lower ROI compared to those launched through an IDO. Nevertheless, going from an IDO to an IEO is not incompatible; in fact, it’s part of the journey for many crypto projects.

What Makes a Good IDO Launchpad Platform?

An effective IDO Launchpad platform will consider the needs of both users and project founders. To the users, accessibility, security, and potential returns on investment are the most important aspects. However, exposure, stability, and growth are the focal points for project founders. The most effective launchpads cater to all of these elements and mechanisms that support both sides of the ecosystem.

What Do Investors Need to Join an IDO Launchpad?

It varies depending on the launchpad. Some require registration through Know Your Customer (KYC) procedures. Others require staking, which means locking up tokens. Some projects require you to purchase the launchpad’s own token, known as token gating, or complete specific actions to be added to the whitelist and participate in the IDO.

Participating in CoinTerminal

In our case at CoinTerminal, we don’t ask you to do any of that. You can participate directly by simply connecting your wallet. No staking, no token gating. We have a refundable sales model, and you can also participate in our monthly crypto lottery by joining one of our refundable IDOs, even if you request a refund. Check our active sales.

What Are the Benefits of Using an IDO Launchpad?

For project founders, the main benefit is the exposure of their project to an audience with strong purchase intent. Through the purchase of their token, this audience will not only support the project's successful launch but also help sustain it in the long term.

For investors, the benefit is the opportunity to have access to a curated selection of projects with high ROI potential.

Final Thoughts

Startups entering the Web3 space see the high potential of getting funding with more freedom, more stability, and higher returns than in the traditional finance space.

Investors, crypto-native or not, are starting to see the potential in investing in early-stage crypto projects, as these projects are going to shape the future of blockchain and technology in general.

IDO launchpads offer a safe space to exchange ideas, funding, and growth.

At CoinTerminal, we support the best early-stage crypto projects. Check out our selection of projects here.

Disclaimer

This article is for educational purposes only. It is a general guide for founders and users navigating the Web3 space. It does not constitute financial advice. Always do your own research before making any investment decisions.If you want to learn more about raising funds or which IDOs to look into, our team is here to help. Feel free to reach out to us on Telegram at any time.

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