The evolution of token fundraising models in the blockchain space has been as dynamic as the technology itself. Over the past decade, new mechanisms for capital formation have continually emerged—each reflecting the interplay of innovation, investor appetite, and regulatory adaptation. This report aims to map out the key trends in Web3 asset launches by examining major fundraising formats such as ICOs, IEOs, STOs, and IDOs. Drawing on recent data and examples, we provide a comparative lens into their growth, challenges, and outlook for 2025 and beyond. Whether you’re an investor, builder, or observer, this overview will equip you with insights into the mechanisms driving the next wave of decentralized innovation.
This report was prepared by Jsquare, a research and technology-driven investment firm dedicated to accelerating blockchain adoption.
ICOs: The First Wave
ICOs were the first significant token fundraising mechanism. A major success story was Ethereum, which raised around $18M in 2014 at $0.35/ETH. By 2018, ICOs peaked with over $6B raised. However, lack of investor protection and a high scam rate contributed to their downfall.
ICO Statistics Summary Table
IEOs: Exchange-Mediated Fundraising
IEOs introduced regulated, exchange-mediated token launches. Platforms like Binance Launchpad provided screening, compliance, and liquidity. They offered better survival and scam rates than ICOs, but required KYC and imposed high fees.
IEO Statistics Summary Table (as of March 18, 2025)
STOs: Regulated Tokenized Assets
STOs enable compliant tokenization of real-world assets like equity or debt. Despite their complexity and cost, they offer the highest project survival rates and lowest scam rates.
STO Statistics Summary Table (as of March 18, 2025)
IDOs: Decentralized Fundraising
IDOs represent decentralized, permissionless fundraising. While lower cost and open-access, they experience higher volatility and fraud rates.
IDO Statistics Summary Table (as of March 18, 2025)
Platforms Facilitating IDOs
Two notable platforms in the IDO space are:
Hyperliquid: Uses Dutch auctions and deploys native HIP-1 tokens.
Pump.fun: A Solana-based meme coin launcher emphasizing ease of use.
Hyperliquid and Pump.fun Statistics Summary Table (as of March 18, 2025)
Comparative Analysis: IEOs vs IDOs
What Comes Next?
Fundraising models influence capital access and project outcomes. The recent rise of permissionless platforms suggests a future where hybrid models—merging on-chain innovation with off-chain compliance—will flourish. In 2025, IDOs are likely to dominate grassroots innovation, while IEOs remain the go-to for institutional teams. Greater stablecoin integration and evolving regulations (e.g., Trump’s Reserve, MiCA) will also shape the path forward.