The crypto market has been highly promoted with the launch of several projects over the years. This gave rise to the influx of new investors coming into the crypto market daily. These investors seek to get in early to increase gain. They also seek safety from the tricks and scams run by bad actors in the crypto space. A Crypto launchpad provides a solution to these concerns. They play a role in ensuring that investors are familiar with new projects before investing at an early stage.
What is a Crypto Launchpad?
A crypto launchpad is a fundraising platform for launching projects tokens, or coins on the blockchain. It is a well-planned and easily accessible platform for new crypto projects. They use it to raise funds while allowing investors to gain early access to token sales. This can be in the form of presales, private sales, or other kinds.
New projects get the benefit of using the Launchpad users to raise funds for their project’s growth and marketing. In return, the participants get to buy the new project token at the best price before launch.
Common Terms Associated With Crypto Launchpad
ICO. This stands for Initial coin offering. It is an event in which a company attempts to raise capital by selling a new cryptocurrency to investors. There were reports of related scams during its days, and this brought an end to it.
IEO means Initial Exchange Offerings. It’s a form of ICO operated by centralized cryptocurrency exchange, CEX.
IDO is a decentralized crowdfunding platform for crypto fundraising. It stands for Initial DEX offering, and it uses a decentralized liquidity exchange to launch a project.
IGO is an Initial game offering that specializes in launching gaming projects.
Participants and users are offered easy access to presales of tokens before they are listed on an exchange via these avenues.
How to Participate in a Crypto Launchpad
Each platform has its own rules for participants. These rules differ from one launchpad to another, but they all share similar working principles.
There are two ways of participating in an IDO launchpad. The guaranteed allocation, and the whitelisted spot.
Whitelisted Spot
This involves going through some social media tasks. Example tasks include Raffle draw events, a gleam contest, and filling out a form with your wallet address to be eligible. All winners are whitelisted, which is the participant’s qualification for the project launch.
A list of whitelisted wallet addresses is made hours or a day before the IDO event.
Guaranteed Allocation
This requires participants to hold or stake the launchpad token prior to the launch of a new project. The staked token qualifies you for a guaranteed spot. It also tells you the amount you can use to buy the new project token. Ensure you get your stablecoins (USDT, BUSD) ready for purchase prior to the start of the launching process.
Finally, if KYC (Know your customer) verification is a must, do it.
How to Choose a Good Crypto Launchpad?
Here are some questions to ask before investing in a project on a crypto launchpad.
- How often do they launch a new project there?
- Do they vet the new projects?
- What is the cost of getting a guaranteed allocation?
- What is the vetting program for each project?
- Are there safety/insurance policies that secure participants against bad actors?
- Are there any means of generating revenue besides IDO?
- After launching, does the launchpad help the new project in marketing?
These questions have been a good guide in choosing a quality launchpad platform.
Conclusion
In cryptocurrency, whoever gets in early wins big. This is true, early investors do win big over the years. This makes it one of the reasons crypto launchpads are the big wave in the crypto space, serving as an intermediary between new and untested projects, and investors.
Participating in a crypto launchpad is like every other investment. Some bad projects don’t yield a good return. Investing in a quality project at an early stage brings a life-changing ROI. As always, you must do your own research(DYOR).
