In the realm of digital currencies, getting in on projects early can be highly advantageous. Take, for instance, those who invested in Bitcoin (BTC) back in 2011. They are now reaping the rewards of their foresight and commitment to the cryptocurrency. This is a prime example of discovering something new, recognizing its potential, and sticking with it.
As the global adoption of cryptocurrencies continues to expand, a new fundraising platform has emerged: the crypto launchpad. These launchpads enable cryptocurrency investors to discover and invest in early-stage crypto projects before they are publicly listed. Consequently, they have the opportunity to purchase tokens at a low cost and profit significantly when their value increases.
Despite the market volatility witnessed in recent years, with Bitcoin plummeting from $60,000 to around $35,000, Ether (ETH) crashing by 40%, and Dogecoin (DOGE) falling by 45%, the popularity of cryptocurrencies has continued to soar. Moreover, there has been an increased push for regulation, with the Biden administration taking steps to regulate the cryptocurrency industry.
Nevertheless, the interest in cryptocurrencies remains at an all-time high. Investors and the general public are constantly on the lookout for the next big thing, and crypto launchpads may provide the perfect platform for such discoveries.
Crypto launchpads serve as decentralized exchange (DEX)-based platforms where crypto projects are introduced and can secure funding. They offer early-stage crypto token sales to the project’s investors before being publicly listed. Investors see this as a golden opportunity to profit from future price increases by purchasing tokens at low prices and selling them later at a profit. Additionally, the minimal cost of launching attracts more crypto projects seeking funding.
The platform also benefits new founders by providing 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, many of these turned out to be scams, resulting in significant losses for investors who lacked the necessary skills or time to screen the projects thoroughly.
In contrast, reputable crypto launchpads conduct due diligence on behalf of users and investors, which is a key factor contributing to their growing popularity. These launchpads subject new projects to a rigorous screening process and enlist third-party services to conduct Know Your Customer (KYC) verification for new users. This helps protect both founders and investors.
So how exactly do crypto launchpads work? These platforms serve as the bridge connecting cryptocurrency projects and interested communities. They enable founders to raise funds from potential users and investors, while also providing investors with the opportunity to maximize their return on investment.
Transparency and security are crucial features that attract investors to crypto launchpads. Users are typically required to undergo a KYC process to verify their identity when creating a new account. This process also makes it more challenging for individuals to manipulate the system by making transactions using multiple aliases.
Each crypto launchpad has its own curated selection of cryptocurrency projects, along with their current status. Interested investors should have access to essential information about these projects, such as their price and start date. When the token sale commences, investors can purchase specific tokens.
Token sales on crypto launchpads are similar to blockchains in terms of transparency, as they allow for easy tracking of the distribution method for each token. This enables retail investors to invest in early-stage tokens and discourages “pump-and-dump” tactics, while promoting an equitable distribution of tokens among investors.
The benefits of crypto launchpads extend beyond bringing cryptocurrency projects and investors together. Some of these advantages include:
1. Low fees: Some launchpads charge minimal fees, while others don’t charge anything for listings. This lowers the barriers to entry and makes it quick and easy to start a project.
2. Security: Launchpads thoroughly vet both users and projects, ensuring the safety of all parties involved. Additionally, the ownership of assets remains with investors, and launchpads do not store user funds, minimizing the risk of breaches.
3. No waiting period: Tokens are available immediately after purchase, eliminating the need for a processing period.
To use a crypto launchpad, users typically follow a set of general steps, although these may vary slightly depending on the specific launchpad they are using.
There are various types of crypto launchpads available, each catering to different crowdfunding needs. Some of the most notable types include:
1. Initial DEX offering (IDO) launchpads: These decentralized platforms specialize in crowdfunding. They facilitate the trading of tokens representing assets hosted on a DEX. Well-known IDO launchpads include FireStarter, BSCPad, GameFi, Seedify, and TrustPad.
2. Initial NFT offering (INO) launchpads: These launchpads allow investors to fund projects that offer collections of nonfungible tokens (NFTs) for sale. Only1, BSCStation, and Seedify are a few examples of INO launchpads.
3. Initial coin offering (ICO) launchpads: ICO launchpads enable founders to raise funds for the development of their blockchain projects by offering tokens to investors. Investors put money into promising projects, hoping for significant returns. Notable ICO launchpads include CardStarter, Binance Launchpad, and Polkastarter.
4. 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.
Before investing in or launching a cryptocurrency project, it is crucial to research and choose the right launchpad. For investors, it is vital to ensure that the launchpad prioritizes security, follows strict protocols, and conducts KYC checks to protect personal information. It is also important to analyze the minimum staking amount and associated perks offered by each launchpad.
For founders, assessing how well a launchpad promotes related projects and gauging the supportiveness of the community are essential factors to consider. Additionally, founders should examine the project vetting process, the criteria used, and the fairness and realism of the launchpad’s terms.
A supportive community can greatly benefit founders as other members can assist in marketing projects to users and potential backers.
The future of crypto launchpads looks promising. These platforms aim to facilitate the funding of crypto projects, thereby combating the growing distrust surrounding cryptocurrencies and boosting investor confidence. By rejecting scammers and promoting legitimate projects, launchpads contribute to improving the market and providing a sense of security to investors and founders alike. For investors, this helps mitigate risks, while founders gain additional opportunities to market their projects.
Moreover, regular investors now have access to investments that were traditionally reserved for institutional investors and venture capitalists. The development of crypto launchpads should make cryptocurrency investments easier and safer. With more investors joining the market, the cryptocurrency industry is expected to continue expanding.