What is Launchpad? What Does It Do?
The cryptocurrency world is developing rapidly and new projects continue to be included in this world every day. “What is Launchpad?” is a term that refers to the launch of new crypto projects and the sale of the project’s own cryptocurrency. At its most basic, the so-called Launchpad allows crypto investors to discover and invest in early-stage crypto projects before they are publicly listed.
A launchpad can usually take place through a cryptocurrency exchange, the project’s own dedicated launch platform, or a platform built just for launchpads.
When cryptocurrency projects come to life, they tend to issue tokens or coins by performing a launchpad. These sales are usually known as Initial Coin Offerings (ICOs), but launchpads are also divided into different types. The project’s cryptocurrency is sold to investors or participants at a set price. This price is likely to be lower than the listing price of the cryptocurrency project.
The main purpose of these sales is to finance the project. Of course, this initiative could also contribute to the early growth and expansion of the project. From the perspective of people who buy cryptocurrencies on Launchpad, Launchpad can be considered as an opportunity to get first access to cryptocurrencies. Of course, this means early access to the project, but also access at an affordable price. These acquisitions can even lead to very large profits, depending on how the project goes.
Launchpad can be briefly described in this way, but it is not limited to this. In the following part of our article, you can read different topics about Launchpad and get more detailed information about the subject.
How Launchpad Works
Thanks to Launchpads, the cryptocurrency project to be launched raises a certain amount of funds. Those who invest in this project get the chance to maximize their return on investment as they carry out this transaction at an early stage.
During the investment in projects on Launchpad, it is a very sensitive issue for investors that the whole process proceeds transparently and safely. This also applies to the Launchpad platform and the related project.
Users who create accounts on the Launchpad platform usually go through a KYC process to verify their identity. This prevents malicious actors from using pseudonyms and manipulating the system.
Launchpad platforms share important information with investors, such as prices and start dates for the projects they host. Launchpad platforms also promote an equal distribution of cryptocurrencies among investors. This initiative is important in preventing tactics based on “pump-and-dump”.
Launchpad connects cryptocurrency projects with the community interested in them. The functioning of this connection takes place within certain frameworks. These frameworks can be analyzed under several headings.
- Selection and Evaluation: The Launchpad platform investigates which crypto projects are worth highlighting. Preference is given to projects that are judged to be reliable and have a high chance of success.
- Hosting a Token Sale: Once a project is selected, the Launchpad team helps the cryptocurrency project host an event where they can sell tokens.
- Fund Raising: The Launchpad platform provides projects with a space to realize the sale of their cryptocurrencies. Of course, this also allows investors to buy these cryptocurrencies.
- Security and Transparency: Security is extremely important for the Launchpad panel. They want to make sure that the investor’s money and information is safe. The Launchpad platform focuses on process management that is both secure and transparent.
- Token Distribution: After the token sale is over, the Launchpad platform helps distribute the sold tokens to all investors.
- Post-Launch Support: Some launchpad platforms may continue to support the project even after the token sale is completed. In this context, they can help promote the project and get it listed on various cryptocurrency exchanges.
This is how Launchpad works in outline. This framework describes how the Launcpad system works, although different processes can be seen on different platforms.
What Types of Launchpad Platforms Are There?
Launchpad platforms can be both centralized and decentralized. In addition, different Launchpad types can be examined below under different headings.
Initial DEX Offering (IDO) Launchpad
IDO launchpad are decentralized platforms for crowdfunding. Cryptocurrencies representing assets hosted on a DEX are traded there. Some known IDO launchpad platforms are FireStarter, BSCPad, GameFi, Seedify and TrustPad.
Initial NFT Offering (INO) Launchpad
The INO launchpad allows investors to fund projects where a collection or collections of non-fungible tokens (NFTs) are available for sale on the platform. Examples of INO launchpad platforms are Only1, BSCstation and Seedify.
Initial Coin Offering (ICO) Launchpad
ICO launchpad allows project owners to raise funds for their blockchain projects by offering cryptocurrency to investors. Some ICO launchpad platforms include BSCPad, DAO Maker and Polkastarter.
Initial Game Offering (IGO) Launchpad
IGO launchpad is a platform for game and metadatabase developers to get funding for their projects. This Launchpad type hosts win-win projects, game utilities and related NFTs. Some examples of IGO launchpad platforms are Gamestarter, Enjinstarter and PlayPad.
What are the Advantages of Launchpad?
Launcpad provides different advantages. These advantages can be analyzed under two headings: for cryptocurrency projects and for investors.
What are the Advantages of Launchpad for Cryptocurrency Projects?
Using launchpads for cryptocurrency projects offers a number of advantages. Here are some of these advantages:
- Access and Equal Opportunity: Launchpads offer investors the opportunity to invest in early-stage crypto projects. This allows a wider range of investors to benefit from the projects.
- Transparency and Reliability: Well-designed launchpads offer a transparent structure to enable the project team and investors to transact in a trusted environment. Using smart contracts and blockchain technologies, token sales and distributions can be carried out reliably.
- Marketing and Promotion Opportunities: Launchpads can be effective in promoting projects and reaching their target audiences. Platforms can help projects get noticed by organizing marketing activities that support projects and provide investors with information about projects.
- Streamlining the Investment Process: Launchpads can streamline the process of investing in crypto projects. Users usually register through the platform, can invest with a specific cryptocurrency and receive the project’s cryptocurrency.
- Token Distribution and Locking: By locking the project’s cryptocurrency for a set period of time, Launchpads can help the project team focus on long-term success. This can contribute to the project achieving sustainable growth.
- Community Engagement: Launchpads allow projects to participate more actively and effectively in their communities. Investors can contribute to the development and management of the project and work with the community for the success of the project.
- Increased Liquidity: Once a project’s cryptocurrency is listed on a launchpad, it usually has the chance to be traded on more exchanges. This increases liquidity and allows investors to trade more easily.
These advantages can help cryptocurrency projects improve their funding and growth using launchpads.
What are the Advantages of Launchpad for Investors?
Launchpads provide investors with the opportunity to invest in crypto projects at an early stage by offering various advantages. Here are some of the advantages offered to investors:
- Early Investment Opportunities: Launchpads offer investors the opportunity to invest early, usually at the stage when projects are launching cryptocurrency sales. This can increase the potential for the investor to realize greater returns as the value of the project increases.
- Project Diversification: Launchpads allow investors to invest in projects operating in different sectors and use cases. This is important for investors looking to diversify their portfolio.
- Community Engagement and Communication: Launchpads can increase interaction between investors and projects. Investors can contribute to the development of projects, participate in community events and communicate directly with the project team.
- Special Offers and Bonuses: Some launchpads may offer special deals, discounts or bonuses to traders using their platform. This can provide additional benefits to investors, making them more attractive to invest.
How to Join Launchpad?
Joining Launchpads requires a process that usually involves a series of steps. However, each launchpad platform may be different, so the onboarding processes may vary from platform to platform. Here are the steps that follow a general launchpad onboarding process:
- Platform Selection: The first step is to decide which launchpad platform to join. This is a selection of platforms where projects are listed and cryptocurrency sales are realized.
- Registration An account will need to be created on the selected launchpad platform. This usually involves creating an account with your email address. Some platforms may also require additional verification steps.
- Authentication (Optional): Some platforms may require users to verify their identity. This can be done to improve the security of the platform and ensure compatibility.
- KYC (Know Your Customer) Process: The KYC process is a process that verifies users’ credentials. This step usually involves providing identity documents and other information. KYC can help a launchpad meet compliance standards.
- Wallet Linking: Launchpad platforms may request the connection of a wallet where traders can store their cryptocurrencies for trading. This can usually be an ERC-20 compliant wallet based on Ethereum.
- Fund Deposit: To participate in Launchpad you will need to deposit the requested amount into your account. Usually this can be Ethereum (ETH).
- Joining Projects: In order to participate in the projects listed on the Launchpad platform, it will be necessary to examine the conditions set by the project and the details of cryptocurrency sales. To participate in the project’s cryptocurrency sale, you may need to deposit a certain amount of cryptocurrency.
- Token Purchase: The project team will distribute cryptocurrencies to investors within a certain period of time after the completion of the cryptocurrency sale. These cryptocurrencies can be bought on the launchpad platform and transferred to the wallet.
The onboarding process may vary from platform to platform, so it is important to follow the steps set by the chosen launchpad itself. Before joining any launchpad, it is recommended to carefully review the platform’s terms of use and security measures.
What are Launchpad Coins?
Launchpads often host the sale of tokens or coins from a number of different crypto projects and can therefore support many different crypto assets. However, each launchpad platform makes its own selection of projects and these may change over time. Therefore, it is important to check the official website or announcements of the respective platform to find out which cryptocurrency is listed on which launchpad.
The top 10 launchpad projects with high market capitalization are as follows:
- DAO Maker (DAO)
- Seedify.fund (SFUND)
- Raydium (RAY)
- GameFi.org (GAFI)
- Bounce (AUCTION)
- Tenset (10SET)
- Polkastarter (POLS)
- PAID Network (PAID)
- Avalaunch (XAVA),
- UFO Gaming (UFO)
It’s important to note that these are just a few examples and that new launchpad platforms and projects are constantly emerging as the cryptocurrency world changes rapidly.
