The cryptocurrency world is becoming a competitive one, and joining one project early is a little beneficial for the users. For instance, the people who invested in Bitcoin back in 2011 are now enjoying the benefits of the investment they made. They found something new, thought about the potential it could have, and stuck with it.
Recently, the world of cryptocurrency has seen a significant rise in popularity inspite of the volatile market that saw the downfall of Bitcoin from 60,000 dollars to somewhere around 35,000 dollars. Dogecoin crashed 45%, and ether also fell 40%.
Even after these events, there is a rise in interest in cryptocurrency among the people. Moreover, people are looking for something big, and crypto launchpads are the perfect platform for that. These launchpads allow crypto founders to generate capital and build awareness from their enterprises at a low cost. It also offers founders and investors a secure platform for connecting and discovering one another.
What Are Crypto Launchpads?
A crypto launchpad, also known as the crypto incubator, is a DEX or decentralized exchange platform that introduces crypto projects and helps in obtaining funds. Before listing tokens publicly, access to the early-stage token sales is given to the crypto investors.
Investors find this as an amazing chance to make profits when the price increases in the future as they buy the tokens at a low cost and sell them at a high price. Due to the minimal launching cost, the platform also draws funding for more crypto projects.
Characteristics Of A Crypto Launchpad
Before launching or investing in any crypto project, it is best to have sound knowledge about the correct launchpad.
For investors who are looking for projects that are safe and assured as well as profitable and would earn them a good return, it is important for them to keep an eye on the commitment towards the security the launchpad is offering. In addition to everything, the platform has to follow some tough security protocols, use KYC, and take some other measures to keep personal information safe.
Founders who are interested in launching their own projects through crypto launchpads have to check if the platform is going to perform well, if it promotes the projects related to it, and if the community is supportive or not. Along with it, you also have to check the vetting process of the project, the criteria, and how realistic and fair the terms of the launchpad are.
Types Of Crypto Launchpads
There are a few different types of launchpads. Let’s check what those are:
IDO Launchpads (Initial DEX Offering)
This is a decentralized platform for crowdfunding. Tokens that represent the hosted assets on DEX are traded here. Some of the popularly known launchpads are BSCPad, Seedify, FireStarter, TrustPad, and GameFi.
INO Launchpads (Initial NFT Offering)
This launchpad allows its investors to fund projects that offer some nonfungible tokens or NFTs on the platform for sale. Some of the known INO launchpads are Speedify, BSCStation, and Only1.
ICO Launchpads (Initial Coin Offering)
These launchpads allow the founders to raise funds for finishing the development of their blockchain projects as they offer tokens to investors. Investors put a suitable amount into the projects they find promising and hope to get a significant return. Some popular ICO launchpads are polkastarter, Binance Launchpad, and CardStarter.
IGO Launchpads (Initial game offering)
This is the platform for metaverse developers and game developers to get funding for projects. Moreover, these platforms are the ones that host IGOs, gaming utilities, play-to-earn projects, and related NFTs. Some of the known IGO launchpads are Playpad, Gamestarter, and Enjinstarter.
How Does It Work?
The crypto launchpad platforms are created for connecting interested communities with other cryptocurrency projects. Further, these help the founders raise money from potential investors and users and allow inverters a fair chance to maximize their investment returns.
Security and transparency are the two main features that draw investors. To create a new account, the users have to go through a KYC process for their identity verification. Moreover, this process makes it difficult for anyone who wants to manipulate the system with the help of different aliases.
Every crypto launchpad has its own handpicked crypto projects and their own status. Investors who are interested are able to access all the important information regarding these projects, like their start date and price. Investors can purchase the tokens when the sale begins.
The sales of tokens on crypto launchpads are a lot like blockchains as they provide transparency, and it is also easy to track the token distribution method. Moreover, this is what makes it possible for the retailers to invest in the early-stage tokens. It ensures that the tokens are evenly distributed between the investors and discourages any pump-and-dump tactics.
Crypto Launchpads Benefits
Launchpads are beneficial as they bring investors and crypto projects together. There are some other benefits as well. Let’s have a look at those.
- Low fees: Most of the launchpads charge a minimal fee, whereas some don’t even charge anything for these listings. Some have lowered the barriers to making an entry, thus making it easy and quick to start a project.
- Security: Launchpads have a way of safeguarding everyone who is involved in the process, the project itself, and the users. Along with that, there is very little possibility of a breach as investors have total ownership of the assets, and these launchpads never store their user’s funds.
- No waiting period: The tokens are immediately available after making a purchase, and there is no time period for processing.
These newly designed platforms of crypto launchpads are created to help facilitate crypto project funds. In addition to that, their main aim is to alleviate the distrust that has been growing around cryptocurrencies and increase the confidence of investors.
Launchpads help improve the market, provide investors with security, and reject scammers. This is an advantage for the founders and investors. It also lowers the risk for investors as it gives founders more opportunities for making the projects.
Regular investors are allowed access to investments that were formally reserved for venture capitalists and institutional investors. The crypto launchpad development should make investing in cryptocurrency a lot safer and easier.