What Is a Crypto Launchpad and How Does It Work?

EXBI
4 min readMay 21

--

The decentralized finance market is growing exponentially. Every year we see the emergence of many startups that attract our attention. To implement the most innovative ideas in Web3, special startup platforms “Launchpads” help to launch crypto startups with ease. In this article, we will look at the main benefits of using launchpads for crypto projects.

Crypto launchpads provide assistance to crypto projects in raising funds through offerings such as Initial Coin Offerings (IDOs) on their platform. To kickstart the process, project owners need to submit their projects for consideration to the launchpad.

Several important factors are taken into consideration in the project selection process: roadmap, white paper — technical document, which describes the idea and how the project works. In addition, the potential for wide dissemination, experience and credibility of the development team are analyzed.

In essence, a launchpad serves as a platform for decentralized projects aiming to expand their user base and secure funds for development through the IDO framework. Simultaneously, it offers an opportunity for investors to participate in the early stages of constructing a new crypto powerhouse.

What are the Key Benefits of Crypto Launchpads?

Security Infrastructure

Leave behind the fear of rug pull scams! Crypto launchpads offer a robust security infrastructure that ensures the protection of both users and projects. The platform carefully scrutinizes all applicants, which prevents fraudulent activities and provides a safer

environment for all stakeholders. Additionally, the launchpad’s architecture ensures that investors retain complete ownership of their assets. This setup makes it highly unlikely for any security breaches.

Through the use of smart contracts, decentralized launchpad platforms automatically regulate and enforce compliance with predefined conditions. This eliminates the need for intermediaries and manual verification processes, streamlining the AML (Anti-Money Laundering) and KYC (know your customer) procedures.

Huge Opportunities for Investors

Launchpads are a game-changer for both entrepreneurs and investors, offering access to a vast network of potential investments and projects. Startups can showcase their projects to investors from all over the world and secure investments if their ideas and proposals are compelling.

Traditionally, venture capitalists have dominated the early-stage funding space. However, the emergence of DeFi and IDO launchpads has completely transformed the landscape, making early-stage funding accessible to anyone. This access to funding is a significant breakthrough for the DeFi industry, enabling anyone with an internet connection to invest in promising projects and participate in early-stage funding rounds. The impact of this shift is profound, as it allows a more diverse range of individuals to invest and contribute to the growth of the DeFi industry.

Building Community-Driven Ecosystem

Crypto launchpads are leading the charge in creating a community-driven ecosystem in the DeFi industry. By facilitating early-stage investment opportunities for everyone, launchpads are generating a community of investors who are committed to the success of the projects they support. This community-centric approach is a significant shift from traditional finance, where investors are typically distant from the projects they fund. Through this community-driven ecosystem, crypto launchpads are fostering innovation and collaboration within the DeFi industry, resulting in a more vibrant and connected community.

Increased Visibility

When a project is listed on a launchpad, it becomes visible to a large audience of potential investors who are interested in supporting new and innovative crypto projects.This increased visibility can be particularly valuable for early-stage projects that may not have an established reputation or network within the crypto community. By leveraging the reach and credibility of a launchpad, founders can attract a wider pool of potential investors who are interested in getting involved in promising new projects.

Furthermore, being listed on a launchpad can also increase the exposure of a project beyond the launchpad platform itself. Launchpads often have partnerships with other platforms, such as social media channels or other crypto-related websites, which can help to further amplify the reach of a project.

How to participate in crypto project token sales on a launchpad?

Participating in a token sale is guaranteed only for investors who are included in the “whitelist” (a list of wallet addresses of investors allowed to participate in the Initial DEX Offering, or IDO). Each participant is allocated a specific number of project tokens that can be purchased or distributed to token sale participants through the launchpad platform. This process of distributing tokens is called allocation.

The allocation on a launchpad can be based on various factors and criteria, such as investment volume, contribution to the project’s ecosystem, level of community involvement. Projects may use different methods to determine the allocation, and these methods can be found in the project’s whitepaper or other project documents.

The purpose of allocation on a launchpad is to ensure a fair distribution of tokens among participants, generate interest and engagement in the project, and support the development of the project’s ecosystem and community.

Here are some general steps usually followed to obtain a whitelist:

  1. Visit the official website of the launchpad and register as a user.
  2. Find information about the upcoming token sale you are interested in and learn more about the requirements for whitelisting.
  3. Fill out the form on the project’s website, providing necessary details such as name, email address, and KYC (Know Your Customer) verification.
  4. After submitting the whitelist request, wait for confirmation from the project team. They will typically notify you of the status of your application.
  5. If your application is approved, you will be added to the whitelist and granted the opportunity to participate in the project’s token sale.

It’s important to note that the process of obtaining a whitelist can be competitive, and spots may be limited.

👉 Follow our social media to stay in the loop of more news and updates:

Twitter | Telegram ENG | Telegram RU | Facebook | VK

--

--

EXBI

Hybrid exchange with Web3 features