In recent years, the popularity of using cryptocurrency launchpads to efficiently and rapidly fundraise for blockchain-based projects has grown. These platforms offer early-stage token sales to a select group of investors at discounted prices before releasing a project to the public market. Both projects and investors benefit from numerous advantages Crypto launchpad provides beyond the availability of early-stage deals. The launchpad team can specifically assist projects in navigating the murky waters of cryptocurrency marketing and fundraising. However, the launchpad’s due diligence and vetting process benefit investors by reducing the likelihood of losing money on scams or poorly conceived ventures.
What Is A Crypto Launchpad?
A crypto launchpad, a crypto incubator, presents and funds new cryptocurrency projects on top of a decentralized exchange (DEX). Crypto investors can purchase tokens in an initial token sale to get in on the ground floor of a project before it goes public.
Many people consider this a fantastic opportunity to capitalize on a future price increase by purchasing tokens at a discount and then selling them for a higher price. The platform’s low barrier to entry attracts more crypto projects seeking funding.
The platform also facilitates the introduction of new startups to the cryptocurrency community at large, benefiting them.
In 2021, when the bull market peaked, many new coins and projects received an influx of funding. However, some scams were involved, causing many people to lose money due to their lack of knowledge or time to vet the projects properly.
In contrast, users and investors benefit from reputable cryptocurrency incubators researching on their behalf. A rigorous screening process safeguards founders and investors, which includes a third party conducting Know Your Customer (KYC) verification on new users.
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How Does a Crypto Launchpad Work?
Crypto launchpads exist to bring together cryptocurrency projects with eager audiences. Launchpads enable early adopters and investors to raise capital and offer the latter a chance to earn a high rate of return.
Potential investors find safety and openness to be the most appealing qualities. When a user signs up for a new service, the service provider usually requires them to undergo a Know Your Customer (KYC) procedure. Additionally, an attacker finds it more difficult to manipulate the system by conducting transactions under various aliases.
Each crypto launchpad will have unique selected cryptocurrency projects and their current status. Potential backers should easily access the cost and timeline for these endeavours. Investors can purchase specified tokens once the sale begins.
Blockchains provide transparency and make it simple to track the distribution method for each token, similar to how token sales on crypto launchpads do. Casual investors can now put money into tokens in their infancy. It also discourages investors from using “pump-and-dump” strategies and promotes a more even distribution of tokens.
Types of Crypto Launchpads
Initial DEX Offering (IDO) Launchpads
Initial DEX offering (IDO) launchpads makes crowdfunding on the blockchain possible. Traders trade tokens representing assets listed on a decentralized exchange here. FireStarter, BSCPad, GameFi, Seedify, and TrustPad are launchpads for IDOs.
Initial NFT Offering (INO) Launchpads
Investors can fund a project by selling a group of NFTs using an INO launchpad. INO incubators like Only1, BSCStation, and Seedify exist.
Initial Coin Offering (ICO) Launchpads
Startups use ICO launching pads to sell tokens to investors, which helps them fund the final stages of development for their blockchain projects. Investors are attracted to potentially lucrative projects hoping to recoup their investment and more. A few popular ICO marketplaces are CardStarter, Binance Launchpad, and Polkastarter.
Initial Game Offering (IGO) Launchpads
Video game and metaverse creators gather support and funding for their games and worlds at the IGO launchpads. These platforms offer IGOs, play-to-earn projects, gaming utilities, and related NFTs for you to find. A few examples of IGO platforms are Gamestarter, Enjinstarter, and PlayPad.
How to Use a Crypto Launchpad?
Use this detailed guide to learn how to use a cryptocurrency launchpad.
Research Launchpads: Start learning about the various crypto launchpads available and compare their features and services. Among those with a history of successful token launches, you should find a launchpad that fits your requirements.
Submit your Project: After deciding on a springboard, you should send your proposal for evaluation. The launchpad crew will evaluate your proposal to determine if it meets their standards.
Token Creation: The launchpad team will assist you in developing your native token once they greenlight your project. As part of this process, they will determine tokenomics, including supply, distribution, and other parameters.
Token Sale: Once you have developed your token, the launchpad team will assist you in launching your token sale. They may use a fixed price or an auction system to establish the token’s value. Investors can purchase your tokens with cryptocurrency.
Post-Sale Stage: The launchpad team will help you list your token on cryptocurrency exchanges after the token sale, ensuring that investors can easily access it. They will also help spread the word about your token and foster an engaged user base.
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Benefits of Using a Crypto Launchpad
Cryptocurrency launchpads facilitate the process of securing financing. They connect a wide range of potential financiers to you, which speeds up the process of funding and launching a project.
Launchpads with expertise in Token Sales can assist new projects in achieving a successful token sale. This can help ensure that the token sale follows all applicable rules and attracts investors.
While launching is crucial, a project’s long-term viability relies on its ability to foster a community. Launchpads can provide invaluable resources when promoting and growing a crypto project’s community.
The launchpad screens projects and investors before accepting them. Investors must go through KYC procedures, while projects must submit proposals and obtain approval. The projects and the money backing them are ensured to be not fraudulent.
Are Crypto Launchpads A Good Investment?
Investors who participate in a cryptocurrency project’s early token sale gain access to the project’s initial token offering at the lowest possible price. Crypto launchpad, a great investment tool, generates additional profits for its users as soon as the value of their projects increases after going public.
Top 5 Crypto Launchpad Platforms
These top crypto launchpads are at the forefront of the field in fostering the development of novel blockchain-based projects. Let’s quickly review each option’s functionality and advantages.
BSCPad is the first launchpad of the BSC Network. The fully decentralized protocol of the platform facilitates fundraising, distributes tokens, and provides higher liquidity for blockchain-based projects.
BSCPad stands out among launchpads due to its groundbreaking “two-round allocation model.” Early investors in this model have access to tier allocation guarantees. On the other hand, BSCPad users will receive any unsold items from the round according to an FCFS (first come, first served) model.
$BSCPad is the native token of the platform. Staking more tokens will place the user in a better Tier, and they will receive more tokens.
BullPerks has gained a reputation for being an open and community-focused decentralized VC and multi-chain crypto launchpad.
The founders of BullPerks actively participate in the business world as entrepreneurs and public figures. The developers and marketers of the platform have worked on and grown a wide range of successful tech and cryptocurrency ventures throughout their careers.
BullPerks commits to meeting the needs of its user base by serving as a reliable platform from which users can launch successful ventures and offer lucrative investment options. BullStarter makes the fully decentralized nature available to all investors by implementing a straightforward 6-Tier allocation system.
The BLP token, which is the official token of this platform, is based on the BSC Network. Users can lock, stake, or farm the token to increase their Tier, and these activities also yield rewards.
TrustSwap utilizes the BSC Network as its foundation, serving as a decentralized launchpad and protocol. $SWAP, the native token of the platform, allows users to access cutting-edge multi-chain swaps and offers additional options for addressing the problems associated with dividing up payments and subscriptions.
$SWAP can encase any token in an ERC20 token and its use in Smart Swaps, Staking, and Smart Locks.
TrustSwap, a Canadian startup, launched in the middle of 2020 to popularize smart contracts and facilitate “customizable transactions” across the decentralized finance (DeFi) and cryptocurrency industries.
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4) DuckStarter by DuckDAO
DuckSTARTER launches blockchain-based projects in front of a wide audience as a decentralized crypto launchpad.
The DuckDAO foundational platform is DuckSTARTER, which utilizes the same $DUCK token. Both Ethereum and BSC Networks back the platform’s native token, which is essential to its functionality.
DuckSTARTER will provide marketing and expert guidance to approved teams on the platform to help them grow naturally and sustainably.
At the outset, WeStarter uses the HECO Network to perform a cross-chain token swap. The platform allows the trading of initial projects based on BSC, Ethereum, and HECO, and they plan to support Polka, Avalanche, and other public blockchains in the future. The first quarter of 2021 saw the platform go live.
WeStarter supports multiple blockchains to meet its investors’ demands and the IWO (Initial Wallet Offering) needs for most blockchain assets. The platform has launched 16 projects, with a total IWO volume of over $1 billion.
The Future Of Crypto Launchpads
Emerging platforms called “crypto launchpads” are aiding in funding cryptocurrency-related projects. They aim to increase investor confidence and decrease the widespread skepticism of cryptocurrencies.
Launchpads benefit investors and entrepreneurs by weeding out scammers while highlighting legitimate crypto projects, strengthening the market and giving investors peace of mind. Investors are lessening the risks while giving startups more ways to get their names out there.
Additionally, individual investors can now access investments previously only available to institutional and venture capitalists. Crypto launchpads have the potential to make buying and selling cryptocurrencies less risky and more convenient. Investors hope that increased investment will continue to expand the cryptocurrency market.