An Initial Liquidity Offering (ILO) is a fundraising method used by projects to launch their tokens. It involves providing liquidity for a new token on decentralized exchanges (DEXs) right from the start.In an ILO, a project sells its tokens directly to investors before it becomes available to the general market. This early sale helps create liquidity, making it easier for holders to buy and sell the tokens once they are officially listed. This is beneficial for both the project and investors, as it ensures that there are enough tokens available on the market.The proceeds from the ILO are often used to fund the project’s development, marketing, and other operational costs. Additionally, ILOs typically require participants to contribute cryptocurrencies, providing an immediate source of liquidity for the token.By offering a fair and transparent way to raise funds, ILOs are becoming an attractive option for new projects looking to build a solid foundation while providing early supporters a chance to acquire tokens at potentially lower prices.