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Crypto launchpad sounds like an element that relates to rockets and outer space. But, this term refers to a different aspect of the crypto world.
In our previous post, we discussed initial game offerings (IGO) and briefly mentioned the IGO launchpad.
In this blog post we will give you a deeper understanding of crypto launchpads and the role they play in cryptocurrency.
Crypto Launchpad Definition
Crypto launchpads also go by the name of crypto incubators. They are platforms where blockchain-based projects can put up capital for their crypto project and at the same time, grant early-access to token sales for their initial crypto investors.
Decentralized exchanges (DEX) usually host the crypto launchpads. The launchpad raises funds by allowing potential crypto investors to buy project tokens at a cheaper price before the project launches its public release.
We have heard of success stories from Bitcoin investors who invested during the early phases and they reaped huge benefits from it. This principle guides the operation of crypto launchpads. Crypto enthusiasts who invest early have a better chance of getting bigger gains than those who invested at a later time.
The costs of producing a launchpad is relatively affordable. But, it provides a secure framework along with a comprehensive KYC Know-Your-Customer process. Implementing strict security is crucial to protect the developers and interested clients from hackers and scammers.
Different Kinds of Crypto Launchpad
Initial Dex Offering (IDO) Launchpads
The initial DEX offering launchpad is still new in the crypto industry. The fundraising done through an IDO involves swapping tokens that represent different assets found in the decentralized exchange (DEX).
Using an IDO to launch a new crypto project equips companies with a venue to connect with their community. Besides enhancing engagement with the users, IDO helps crypto start-ups improve their services or products by making sound financial decisions on how to manage their project.
For the most part, developers who belong to the higher levels of an IDO platform create their native tokens and this becomes a requirement for users who want to participate in their business.
Initial Coin Offering (ICO) Launchpads
This is the more common method of raising capital for a certain cryptocurrency. Developers who still need to fully complete their blockchain-based product or service usually resort to using ICOs to attract crypto investors. Fiat currencies, Bitcoin or Ethereum are acceptable forms of payment for an ICO.
Potential investors usually engage with an initial coin offering program because they feel hopeful that this new venture will take off in the future and give them a substantial return on investment (ROI).
Initial Game Offering Launchpad
Considered rare, an initial game offering launchpad can host a plethora of different game-related services such as gaming metaverses, P2E projects, in-game utilities, and marketplaces for trading gaming/metaverse NFTs.
However, allocations for an IGO launchpad follow specific tiers. If you stake a huge number of tokens for a long time, your tier increases along with your priority status and guaranteed allocation.
Initial NFT Offering Launchpad
Lastly, we have the initial NFT offering launchpad. It offers a special and limited set of NFTS for sale. INOs benefit artists and those who work in the creative industry.
Advantages of Crypto Launchpad
Great businesses often come from what seems to be a simple idea. When you publicize your idea in the right market and to the right clients, it will grow exponentially.
This is also the case for crypto projects. They need to expand and upscale. Both of these require an adequate amount of money. Crypto launchpads help these blockchain projects achieve their highest potential.
Investment at an Early Stage
Low price investments at an early stage often give the highest returns possible. When a crypto coin or token is publicly launched, its price skyrockets. Therefore, this is a huge benefit to crypto investors.
Early investors get to purchase the coins or tokens at a lower price and can maximize their profits.
Token Appreciation and Project Security
Crypto projects always come with security risks. In fact, it is reported that over $1.6 billion was stolen from Defi platform users this 2022. This figure trumps the total from 2020 and 2021.
This kind of risk makes investors hesitant to put their money into cryptocurrency. However, with launchpads, the projects are legit, and participants do not need to worry about getting scammed.
Also, if the project succeeds and it becomes a widely-used digital asset, the price will surely appreciate over time. What started as a simple idea becomes a worthy investment.
Bringing the Community together
The launchpad has different types and this helps open cryptocurrency to people with varying interests. Diversity helps strengthen the crypto community by allowing them to interact with each other via games, token swapping, or even in simple discussions.
The platforms where crypto investors meet can act as a forum where they can share insights, exchange advice and even promote the crypto projects that they are rooting for.
Top Crypto Launchpads List
There are five popular crypto launch pads: BSCPad, TrustSwap, BullPerks, DuckStarter, and WeStarter.
First is BSCPad, which stands for Binance Smart Chain Pad. it functions on a wholly decentralized system. It helps crypto projects with token distribution, crowdfunding, and liquidity. Its native token is $BSCPad.
Next, also a decentralized launchpad, Bull Starter is popular for being multi-chain and community-dedicated. The official token of Bull Starter is $BLP.
Third, TrustSwap is a Binance Smart Chain-based launchpad. It is also multi-chain. Furthermore, its token, $SWAP accommodates a variety of transactions like smart swap, smart lock and staking.
Fourth, DuckStarter is part of the DuckDAO and promotes blockchain-based projects to their big community. Their native token is $DUCK that is supported by Bitcoin and Ethereum.
Lastly, Westarter is a fairly new launchpad. HECO Network launched WeStarter in the first quarter of 2021. It provides support to the initial project exchanges that are BSC and Ethereum based.
To date, Westarter already launched 16 crypto projects that total to $1 billion Initial Wallet Offering (IWO).
To sum up, crypto launchpads act as digital bridges between crypto investors and the creative developers. Start-ups need to catch the attention of crypto enthusiasts, and considering that they are new to the crypto space, they need to build credibility before people put their money into the project.
Crypto launchpads solve this problem by providing a token launch platform where developers can showcase their finest work and help them convince users that they are worthy of investments.