[Correction] How Institutional Dominance Challenges IDOs’ Retail-First Promise

- Retail investors face new barriers as IDOs become institution-dominated. - Innovative launchpads aim to restore accessibility and trust. Initial DEX Offerings (IDOs), once celebrated as a path to financial freedom for retail investors, are now at a crossroads. On August 6, 2025, Cointelegraph reported that Hatu Sheikh, founder of Coin Terminal, argued that IDOs have strayed from their democratizing roots, explaining that institutional players now increasingly control the space and create high barriers to entry. According to Sheikh, the original vision for IDOs was to provide retail investors with equitable opportunities in token launches. However, institutional dominance has shifted the landscape, as institutions now introduce restrictive practices like costly minimum investment thresholds and opaque processes that alienate smaller investors. In response, new launchpads are emerging to address these issues and revive the inclusive spirit of IDOs. These platforms work to lower entry barriers, increase transparency, and introduce protective measures like refund mechanisms to safeguard participants. Sheikh emphasized that these reforms are critical to fostering sustainable growth in the IDO ecosystem, believing they will also build long-term trust and engagement within the crypto community.