In the modern world of cryptocurrencies and NFT tokens, where there is a significant growth of interest, a key question arises for both crypto startup developers and their potential investors - it is the search and placement of promising projects on the internet.
Whether the project is a game, a cryptocurrency, or part of a metaverse, they all need a specialized platform. On such a platform, one can not only promote the product but also provide extensive information about it, as well as offer opportunities for buying, selling, or exchanging tokens. Launchpads serve this role, which are quite important for startups and investors.
- What is a Launchpad?
- What are the types of crypto launchpads?
- Participation in a Launchpad and popular platforms
What is a Launchpad?
Launchpad is a crowdfunding platform focused on raising funds for blockchain projects. They act as intermediaries between startups and investors. Investors put their money into the development of a new product or service at an early stage, in exchange receiving tokens. These tokens are digital assets that give the investor the status of a participant of the project. Later, the tokens can be exchanged for real goods or services, such as access to recordings of a famous artist, or used to purchase features in games or access to exclusive locations.
As the project grows and attracts new investors after launching in the market, the profits of the participants who invested at the launchpad stage also increase.
The main function of a Launchpad is to ensure safety for its users. They carefully check both startups and investors, including through the KYC ("know your customer") procedure, thus building trust between participants and minimizing the risk of fraud.
What are the types of crypto launchpads?
There are various types of crypto launchpads, differing in the ways of raising funds and launching projects:
- Platforms for ICO (Initial Coin Offering)
This type of platform is used to sell project tokens in exchange for cryptocurrency or stablecoins. ICOs started appearing in 2016, most of them based on the Ethereum blockchain. Projects launched through ICOs resemble IPOs, but with the difference that cryptocurrency investors do not receive a share in the blockchain startup, dividends, or other rights. Currently, ICO platforms are losing popularity and trust due to numerous cases of fraud.
- Platforms for IEO (Initial Exchange Offering)
The mechanisms offer the initial sale of cryptocurrencies or tokens on centralized exchange platforms. Exchanges act as intermediaries between developers and investors, ensuring the fulfillment of obligations and protection against fraud and speculation. For providing these services, exchanges charge a fee from the launchpad users.
- Platforms for IDO (Initial DEX Offering)
These are launchpads that conduct initial offerings of cryptocurrencies or tokens on decentralized exchanges. Most IDO launchpads issue their own tokens, and users must own a certain amount of these tokens to participate in crowdfunding.
- Platforms for INO (Initial NFT Offering)
Platforms designed for the first public offering of NFTs. INO launchpads are mainly focused on musicians, artists, designers, and other creators of unique content, as well as their investors.
- Platforms for IGO (Initial Game Offering)
IGO platforms are intended for the initial offering and crowdfunding of games, gaming NFTs, gaming metaverses, play-to-earn (P2E) projects, and in-game utilities.
Participation in a Launchpad and popular platforms
Participants in launchpads can be both investors with Web3 wallets and cryptocurrency, and developers of cryptocurrencies, NFTs, and other blockchain projects. Investors for participation in such offerings as IDO must pass selection into white lists and undergo KYC verification to exclude unacceptable participations. After verification, they can invest in new tokens.
Project creators must submit detailed business plans and receive exchange approval to gain support and access to a global network of investors. The final stage includes launching the cryptocurrency or token and their pre-sale before appearing on the exchange.
It is worth noting that a number of crypto launchpads stand out for their popularity and unique features:
| Launchpad | Features | Token | Additional Information |
|---|---|---|---|
| BSC PAD | The first fully decentralized IDO platform for Binance Smart Chain. | BSCPAD | A unique two-round system for asset distribution. 69 projects launched, $16 million raised. |
| Polkastarter | A launchpad platform on the Polkadot blockchain, using cross-chain bridges. | POLS | A fully decentralized and open platform. 109 IDO projects launched, $49 million raised. |
| Red Kite | A launchpad based on the PolkaFoundry ecosystem with a thorough approach to project verification. | PKF | Collaboration with Blockpass for KYC. A reputation system for participants. |
| DAO Maker | A crypto incubator using multiple technologies for the benefit of investors and startups. | DAO | One of the most popular IDO platforms with high average ROI. Over 110 projects launched. |
Launchpads play a key role in integrating blockchain technology into everyday life, facilitating the development and support of numerous cryptocurrency projects. They simplify the process of creating, finding, and funding new initiatives in the world of cryptocurrencies.
