ICOs and IDOs MCQs September 29, 2025 by u930973931_answers 50 Score: 0 Attempted: 0/50 Subscribe 1. : What does ICO stand for in cryptocurrency? (A) Initial Coin Offering (B) International Crypto Organization (C) Initial Chain Operation (D) Internet Currency Option 2. : What does IDO stand for in crypto fundraising? (A) International Digital Offering (B) Initial Decentralized Offering (C) Internal Data Operation (D) Initial Development Option 3. : Which of the following is a major risk in ICOs? (A) Regulatory uncertainty (B) Strong partnerships (C) Transparent whitepaper (D) Audited contracts 4. : IDOs are usually launched on: (A) Centralized exchanges (B) Decentralized exchanges (C) Mining pools (D) Hardware wallets 5. : A whitepaper in ICOs typically provides: (A) Roadmap, technology, and tokenomics (B) Only price predictions (C) Only trading signals (D) Exchange listing date 6. : Which of the following was one of the most successful ICOs in history? (A) Ethereum (B) Litecoin (C) Ripple (D) Bitcoin Cash 7. : The biggest challenge for investors in ICOs is: (A) High transparency (B) Price stability (C) Scams and fraud projects (D) Liquidity pools 8. : Which fundraising model allows immediate liquidity for tokens? (A) ICO (B) IPO (C) IDO (D) STO 9. : Token distribution fairness is important in ICOs/IDOs because: (A) It avoids whale dominance (B) It reduces volatility permanently (C) It guarantees profits (D) It fixes regulations 10. : Which regulatory body has cracked down on ICOs in the USA? (A) SEC (B) WHO (C) IMF (D) WTO 11. : What is a common advantage of IDOs over ICOs? (A) Instant token listing and liquidity (B) Complete government backing (C) Guaranteed profits (D) No need for a whitepaper 12. : Which platform is widely used for launching IDOs? (A) Uniswap (B) Binance Smart Chain Launchpads (C) Ethereum ICO website (D) Mining pools 13. : KYC (Know Your Customer) in ICOs is used for: (A) Regulatory compliance and investor verification (B) Increasing token price (C) Pump-and-dump strategies (D) Token burning 14. : Which of these is a red flag in ICO investments? (A) Anonymous team with no track record (B) Audited smart contracts (C) Transparent roadmap (D) Strong partnerships 15. : Which token sale method often provides early access at a discount? (A) Private sale (B) IDO (C) STO (D) Secondary market 16. : An ICO is most similar to which traditional fundraising method? (A) IPO (B) Loan agreement (C) Real estate auction (D) Venture debt 17. : Which blockchain is most famous for hosting ICOs? (A) Bitcoin (B) Ethereum (C) Litecoin (D) Dogecoin 18. : In IDOs, fundraising happens through: (A) Smart contracts on DEX platforms (B) Banks and brokers (C) Central authorities (D) Government bonds 19. : Which type of fundraising ensures compliance with securities laws? (A) ICO (B) IDO (C) STO (D) NFT drop 20. : A lock-up period in ICOs/IDOs is meant to: (A) Prevent early dumping by investors (B) Guarantee daily profits (C) Increase inflation (D) End trading forever 21. : What does โsoft capโ mean in ICOs? (A) Minimum funding goal for the project (B) Maximum supply of tokens (C) Token burning limit (D) Investor KYC limit 22. : What does โhard capโ represent in ICOs? (A) Maximum amount a project aims to raise (B) Minimum circulation supply (C) Minimum trading liquidity (D) Daily price ceiling 23. : Which factor makes IDOs more transparent than ICOs? (A) Decentralized and automated fundraising process (B) Reliance on centralized brokers (C) Lack of blockchain technology (D) Guaranteed government approval 24. : Which of these is a benefit of participating in ICOs early? (A) Lower token price (B) Guaranteed exit strategy (C) Zero risk investment (D) Higher transaction fees 25. : ICO scams are commonly referred to as: (A) Rug pulls (B) Pump-and-dumps (C) Ponzi schemes (D) All of these 26. : In ICOs, tokenomics helps investors understand: (A) Supply, demand, and utility of tokens (B) The weather forecast (C) Daily RSI indicators (D) Central bank rates 27. : Which network is famous for launchpads supporting IDOs? (A) Solana (B) Ethereum (C) Binance Smart Chain (D) All of these 28. : Which of these is NOT a typical step in ICO participation? (A) Registering for whitelist (B) Sending crypto to the projectโs address (C) Completing KYC (D) Mining Bitcoin directly 29. : What is a common benefit for projects launching an IDO? (A) Immediate trading and liquidity for their token (B) No development required (C) Free government grants (D) Unlimited token printing 30. : Which of these risks applies to both ICOs and IDOs? (A) Market volatility and scams (B) Guaranteed stable profits (C) No regulatory issues (D) Inflation-proof investments 31. : A successful ICO/IDO usually requires: (A) Strong marketing, clear vision, and solid team (B) Anonymous founders and hype only (C) Zero communication with investors (D) No use case for tokens 32. : What is the main difference between ICO and IDO? (A) ICO uses centralized fundraising, IDO uses decentralized exchanges (B) ICO happens on DEX, IDO happens on CEX (C) ICO is government-controlled, IDO is not (D) ICO issues NFTs, IDO issues coins 33. : Which crypto boom year made ICOs extremely popular? (A) 2009 (B) 2013 (C) 2017 (D) 2021 34. : Which of these best describes a rug pull in IDOs? (A) Developers drain liquidity after fundraising (B) Token burning event (C) Airdrop reward (D) Whitepaper publishing 35. : Why do some investors prefer IDOs over ICOs? (A) Lower entry barriers and instant liquidity (B) Government guarantees (C) No risk of fraud (D) Automatic profits 36. : Which crypto concept was criticized heavily due to ICO scams? (A) Decentralization (B) Token sales (C) Proof of Work (D) Blockchain immutability 37. : The main role of a launchpad in IDOs is to: (A) Connect projects with investors (B) Print fiat money (C) Replace mining (D) Control global inflation 38. : An ICO/IDO whitelist is: (A) A list of approved early investors (B) A blacklist of scams (C) A central government record (D) A tax exemption certificate 39. : Which of these is a common way to protect investors in IDOs? (A) Smart contract audits (B) Fake whitepapers (C) Anonymous teams (D) No liquidity pools 40. : STO stands for: (A) Security Token Offering (B) Smart Token Operation (C) Standard Trading Option (D) Special Token Offering 41. : Which is the most liquid type of fundraising? (A) ICO (B) IDO (C) STO (D) IEO 42. : IEO stands for: (A) Initial Exchange Offering (B) Internal Equity Offering (C) Internet Earning Option (D) Initial Energy Output 43. : One reason ICOs faced bans in countries like China was: (A) High risk of fraud and scams (B) Strong regulatory compliance (C) Investor safety (D) Low participation 44. : Which advantage do ICOs have over traditional IPOs? (A) Faster fundraising and global participation (B) Guaranteed profits (C) No risk involved (D) Legal protections 45. : In ICO/IDO, vesting schedules help to: (A) Prevent large token dumps by insiders (B) Inflate prices quickly (C) Eliminate adoption (D) Guarantee scams 46. : Airdrops in ICOs/IDOs are used to: (A) Distribute free tokens for promotion (B) Prevent trading (C) Increase inflation (D) Stop liquidity 47. : What role does liquidity pool play in IDOs? (A) Provides instant trading ability for tokens (B) Stores fiat money (C) Prints stablecoins (D) Reduces demand 48. : Which of these best describes โtoken utilityโ? (A) Real use cases of the token in its ecosystem (B) Daily price volatility (C) Government approval (D) Exchange listing price 49. : Why are audits important for ICOs and IDOs? (A) They ensure code security and reduce scam risk (B) They guarantee high profits (C) They predict token prices (D) They remove regulations 50. : The primary purpose of ICOs and IDOs is to: (A) Raise funds for crypto projects (B) Replace fiat currency (C) Control inflation (D) Regulate governments