In the realm of digital currency, getting involved in projects early on can prove to be advantageous. For instance, individuals who purchased Bitcoin (BTC) in 2011 are now reaping the rewards of their investment. They recognized something novel, saw its potential, and remained committed to it.
With the increasing global acceptance of cryptocurrency comes a new fundraising platform: the crypto launchpad. These launchpads enable crypto investors to discover and invest in early-stage crypto projects before they are publicly listed. Consequently, they can purchase tokens at a low cost and earn greater profits when their value rises.
Despite market volatility, which led to Bitcoin dropping from $60,000 to around $35,000, Ether (ETH) crashing 40%, and Dogecoin (DOGE) falling 45%, cryptocurrency has experienced a significant surge in popularity in recent years. Additionally, there has been a heightened push for regulation, with the Biden administration taking steps to regulate cryptocurrency.
Nevertheless, interest in cryptocurrency remains at an all-time high. Investors and the general public are on the lookout for the next big opportunity, and crypto launchpads may provide the ideal platform.
Crypto launchpads allow founders of crypto projects to raise awareness and generate capital for their companies at a minimal cost. Moreover, launchpads offer investors and founders a secure platform to connect and discover one another.
What exactly is a crypto launchpad?
A crypto launchpad, sometimes referred to as a crypto incubator, is a platform based on decentralized exchanges (DEX) where crypto projects are introduced and can secure funding. Early-stage crypto token sales are made available to the project’s crypto investors before they are listed publicly.
Investors view this as a great opportunity to profit from future price increases by purchasing tokens at low prices and later selling them for a profit. Because the cost of launching is minimal, the platform can attract more crypto projects seeking funding.
New founders also stand to benefit from the platform, as they have easier access to a pool of cryptocurrency investors and enthusiasts eagerly awaiting the next exciting venture.
During the peak of the bull market in 2021, numerous new coins and projects were launched, with investors pouring money into them. However, some of these projects turned out to be scams, resulting in financial losses for many investors who lacked the necessary skills or time to vet the projects.
In contrast, trusted crypto launchpads perform thorough due diligence on behalf of users and investors, which is another reason for their increasing popularity. New projects undergo a rigorous screening process, with a third party conducting Know Your Customer (KYC) verification on new users, thus protecting both founders and investors.
How does a crypto launchpad operate?
Crypto launchpad platforms serve as a bridge between cryptocurrency projects and interested communities. Launchpads help founders raise funds from potential users and investors, while investors have the opportunity to maximize their return on investment.
Transparency and security are two crucial features that attract investors. Users who create new accounts typically undergo a KYC process to verify their identity. This process also makes it more difficult for individuals to manipulate the system by conducting transactions using multiple aliases.
Each crypto launchpad has its own curated selection of cryptocurrency projects and their current status. Interested investors should be able to access essential information about these projects, such as price and start date. Investors can also purchase specific tokens once their sale begins.
Token sales on crypto launchpads function similarly to blockchains, providing transparency and enabling easy tracking of the distribution method for each token. This allows retail investors to invest in early-stage tokens and promotes a fair distribution of tokens among investors while discouraging “pump-and-dump” tactics.
What are the advantages of crypto launchpads?
Launchpads offer several benefits by bringing cryptocurrency projects and investors together. Some of these advantages include:
Low fees: Some launchpads charge minimal fees or no fees at all for listings. Additionally, some launchpads simplify and expedite the project initiation process by lowering entry barriers.
Security: Launchpads thoroughly vet both users and projects, ensuring the safety of all parties involved. Since investors have full ownership of their assets and launchpads do not store user funds, the likelihood of a breach occurring is minimal.
No waiting period: Tokens are available immediately after purchase, eliminating the need for a processing period.
How to utilize crypto launchpads
While the specific steps may vary depending on the crypto launchpad being used, the following are general guidelines:
Types of crypto launchpads
Initial DEX offering (IDO) launchpads
IDO launchpads are decentralized platforms for crowdfunding where tokens representing assets hosted on a DEX are traded. Some well-known IDO launchpads include FireStarter, BSCPad, GameFi, Seedify, and TrustPad.
Initial NFT offering (INO) launchpads
INO launchpads allow investors to fund projects in which collections of nonfungible tokens (NFTs) are offered for sale on the platform. Some notable INO launchpads include Only1, BSCStation, and Seedify.
Initial coin offering (ICO) launchpads
ICO launchpads enable founders to raise funds for the completion of their blockchain projects by offering tokens to investors. Investors contribute funds to promising projects in the hopes of significant returns. Prominent ICO launchpads include CardStarter, Binance Launchpad, and Polkastarter.
Initial game offering (IGO) launchpads
IGO launchpads serve as platforms where game and metaverse developers can secure funding for their projects. These launchpads host IGOs, play-to-earn projects, gaming utilities, and related NFTs. Examples of IGO launchpads include Gamestarter, Enjinstarter, and PlayPad.
Characteristics of a reputable crypto launchpad
Before investing in or launching a cryptocurrency project, conducting research on the appropriate launchpad is crucial.
For investors
Investors seeking assurance that projects are safe, profitable, and will yield a good return on investment should prioritize launchpads committed to security. The platform should adhere to strict security protocols, employ KYC checks, and take measures to safeguard personal information.
The minimum staking amount and associated perks will vary, necessitating careful analysis before making a decision.
For founders
Founders interested in launching their projects through a crypto launchpad should evaluate how well the platform promotes related projects and whether the community is supportive. Additionally, assessing the project vetting process, criteria, and the fairness and feasibility of the launchpad’s terms is essential.
A supportive community can be highly beneficial, as other members can assist in marketing projects to users and potential backers.
The future of crypto launchpads
Crypto launchpads are novel platforms designed to facilitate the funding of crypto projects. They aim to address the growing distrust surrounding cryptocurrencies and enhance investor confidence.
By rejecting scammers and endorsing legitimate crypto projects, launchpads contribute to market improvement and provide investors with a sense of security. This is advantageous for both investors and founders, as it reduces risks for investors and offers founders additional opportunities to promote their projects.
Furthermore, regular investors now have access to investments that were previously reserved for institutional investors and venture capitalists. The development of crypto launchpads should make cryptocurrency investments more accessible and secure. With increased investor participation, the cryptocurrency industry is expected to continue growing.