~Decryptox
ICOs let startups raise funds by selling their own tokens directly to investors, offering flexibility and potential high returns, but also carry significant risks due to lack of regulation, potential scams, and liquidity issues.
Pros: control, low cost, high potential returns. Cons: unregulated, high risk, liquidity issues.
Think of IEOs as buying new digital tokens through a trusted online store. The store vets the token, making it safer and reaching more buyers than buying directly from the creators.
IDOs: Token launches on "community markets" (DEXs). Quick trading, cheap, decentralized, but risky price swings and less protection.