In the world of cryptocurrency, joining an early project can be beneficial. For example, investors who bought Bitcoin (BTC) in 2011 are now reaping the benefits of their investment. They discover something new, see the potential and get stuck in.
With the worldwide adoption of cryptocurrency, there is a new fundraising platform: the crypto launchpad. Launchpads allow crypto investors to discover and invest in early-stage crypto projects before they are publicly listed. As a result, they can buy tokens cheaply and earn more profit when the price rises.
In recent years, crypto has gained significant popularity despite the market volatility that caused Bitcoin to drop from $60,000 to around $35,000, Ether (ETH) fell by 40%, and Dogecoin (DOGE) fell by 45%. The regulatory push has also been stepped up, with the Biden administration taking steps to regulate cryptocurrency.
Despite these events, interest in cryptocurrency remains at an all-time high. Investors and the general public are looking for the next big thing, and the crypto launchpad may offer the ideal platform.
Launchpads allow founders of crypto projects to build awareness and generate capital for their companies at a small price. In addition, launchpad offers investors and founders a safe platform to find and connect with each other.
What is a crypto launchpad?
A crypto launch, sometimes called a crypto incubator, is a decentralized exchange (DEX)-based platform where crypto projects are introduced and can get funding. Before the public listing, an early stage crypto token sale is available to the project’s crypto investors.
Investors see this as a great opportunity to profit from future price increases by buying tokens at low prices and selling them at a profit later. Since the launch fee is very low, the platform can also attract more crypto projects for funding.
New founders also benefit from the platform, as they will have easier access to a pool of investors and cryptocurrency enthusiasts waiting for their next exciting venture.
In 2021, at the peak of the bull market, many new coins and projects are launched, with investors pouring money. However, some are scams, and many lose money because they don’t have the right skills or time to present the project.
In contrast, trusted crypto launchpads do due diligence for users and investors, which is another reason for their growing popularity. New projects undergo a rigorous screening process, with third parties enlisted to perform Know Your Customer (KYC) verification on new users, helping to protect founders and investors.
How does crypto launchpad work?
The Crypto launchpad platform exists to connect cryptocurrency projects and interested communities. Launchpads help founders raise money from potential users and investors and give investors an opportunity to maximize their return on investment.
Transparency and security are the two main features that attract investors. Users who create new accounts will usually undergo a KYC process to verify their identity. This procedure also makes it difficult for people to cheat the system by making transactions using multiple aliases.
Each crypto launchpad will have its own handpicked cryptocurrency projects and their current status. Interested investors should be able to access important information about the project, such as price and start date. Investors will also be able to purchase certain tokens when the sale begins.
Token sales on crypto launchpads are similar to blockchain in that they provide transparency and ease of tracking the distribution method for each token. This makes it possible for retail investors to invest in early stage tokens. It further encourages an even distribution of tokens among investors and prevents “pump-and-dump” tactics.
What are the benefits of crypto launchpads?
Launchpads are beneficial for bringing together cryptocurrency projects and investors. Among other benefits are:
- Low fees: Some launchpads only charge a nominal fee, while others charge nothing for listing. Some launchpads make it quick and easy to start a project by lowering the barrier to entry.
- Security: Launchpads thoroughly vets users and projects, protecting everyone involved. It is unlikely that there will be a violation because investors have absolute ownership of the assets, and launchpad does not store user funds.
- No waiting time: Tokens are available immediately after purchase without requiring any processing time.
How to use crypto launchpads
Here are some general steps; However, it may vary depending on the crypto launchpad you are using:
Types of crypto launchpads
Initial DEX Offering (IDO) launchpads
IDO launchpads is a decentralized platform for crowdfunding. Tokens representing assets hosted on the DEX are traded here. Some of the known IDO launchpads are FireStarter, BSCPad, GameFi, Seedify and TrustPad.
Initial offering of NFT (INO) launchpads
INO Launchpads allow investors to fund projects where a collection, or collections, of nonfungible tokens (NFT) are offered for sale on the platform. Some of the INO launchpads are Only1, BSCStation and Seedify.
Initial coin offering (ICO) launchpads
ICO launchpads allow founders to raise funds to complete the development of blockchain projects by offering tokens to investors. Investors will put money into promising projects, hoping for significant returns. Well-known ICO launchpads include CardStarter, Binance Launchpad and Polkastarter.
Initial game offering (IGO) launchpads
IGO launchpads is a platform where game and metaverse developers can get funding for their projects. These launchpads host IGOs, play-to-ear projects, game utilities and related NFTs. Some examples of IGO launchpads are Gamestarter, Enjinstarter and PlayPad.
Characteristics of a good crypto launchpad
Before investing or launching a cryptocurrency project, it is important to do your research on the right launchpad.
For investors
For investors who want assurance that the project is safe, profitable and will return a good investment, it is important to check launchpad’s commitment to security. These platforms must follow strict security protocols, use KYC checks and take other measures to protect personal information.
The minimum staking amount and perks associated with each launchpad will vary, so careful analysis is required before deciding.
For the founder
Founders who are interested in launching their projects through a crypto launchpad should assess how the platform supports related projects and whether the community supports them or not. In addition, it is important to check the project vetting process, criteria, and how fair and realistic the terms of the launchpad are.
A supportive community can be of great benefit as other members can help market projects to potential users and supporters.
The future of crypto launchpads
Crypto launchpads is a new platform designed to facilitate the funding of crypto projects. The aim is to reduce mistrust around cryptocurrencies and increase investor confidence.
By rejecting scammers and promoting legitimate crypto projects, launchpads help improve the market and give investors a sense of security, which is beneficial for both investors and founders. For investors, it helps reduce risk while giving founders additional opportunities to market their projects.
As a bonus, regular investors can now access investments that were once reserved for institutional investors and venture capitalists. The development of crypto launchpads should make cryptocurrency investment easier and safer. And with more investors, it is expected that the cryptocurrency industry will continue to grow.