Cryptocurrency investors are always wondering to find investment methods to maximize their profits in many ways. Launchpad is an effective method among them. So what is launchpad? What role does Launchpad play in cryptocurrency?
What is Launchpad crypto?
Launchpad in crypto is a method of investing by buying coins that are not listed on any exchange. Launchpad will be operated by a cryptocurrency exchange or a separate platform depending on the vision of the project founders will be different. The price of unlisted coins is much lower than when it was listed. Therefore, if successful, investors can earn huge profits.
Example: Mr. A buys an unlisted AGO coin through a launchpad platform, Binance Launchpad, for $0.0001. After listing on exchanges, the price of AGO is 0.1$. A’s investment has earned a rate of return of 1000%.
What is the role of the launchpad?
Launchpad makes the crypto market more transparent. When the initial offerings became unreliable with many fraudulent information discovered, the launchpad was born to solve this problem. The launchpad platform in crypto is more transparent than the web-based sales events of a few years ago. The reason is because before being offered for sale, the token is always tested and listed for trading by reputable exchanges that support launchpad and audited by reputable companies. Currently, the launchpad in crypto is much more trusted by investors than buying directly on the web. Therefore, the role of the launchpad in the listing and sale of tokens is really important.
The process of issuing tokens of a new project will take a lot of time and cost. In particular, it is even more difficult to approach investors to raise capital. With launchpad projects, developers completely overcome the above disadvantages. Investor access has also become easier. These investors are those who are willing to participate in new projects in order to enjoy profits tens to hundreds of times. That’s when the token is sold publicly on exchanges like Binance, Coinbase, .. Because of such huge profits, the sale only opens and ends in a very short time.
How launchpad works in crypto
With the huge profits that launchpad brings, we need to understand how launchpad crypto works.
To understand how launchpads work in crypto, you need to understand the stages from when new projects raise capital to when their tokens are circulated on exchanges.
Stage 1: The new project development team will launch a product/service they are developing. Such a market launch is intended to attract investors.
Phase 2: They continue to launch the project’s own token. These tokens are considered the heart of the project.
Phase 3: The development team will sell tokens to initial investors through the launchpad system on exchanges to raise capital. They sell these tokens at a price that is usually undervalued in the public sale.
Phase 4: Tokens are circulated publicly on the market through exchanges.
Stage 5: As the project grows, the value of the tokens increases many times. That’s what investors who buy through launchpads hope.
This is exactly how Launchpad in crypto works.
TOP 4 most popular Launchpad platforms in crypto today
Binance Launchpad
Binance is currently the most reputable exchange and has the largest number of users in the world. When Binance Launchpad was born, many investors expected it to be a truly reliable platform. Indeed, Binance Launchpad has a very thorough audit and review process for projects before launchpad. That has brought a big advantage for Binance as it has increasingly won the trust of investors.
Advantages
- Is a reputable trading platform and leading in the world in terms of transaction size.
- To join the Binance Launchpad platform, users only need to spend a minimum amount of 0.1 BNB (equivalent to $ 25, with market price at 9pm Vietnam on July 25, 2022). The cost is not too expensive for you to buy potential coins and bring great profits.
Limit
- Binance Launchpad has tied up with many other platforms, inadvertently making their portfolios lack coherence.
- In addition, the application’s transmission speed sometimes makes it difficult for investors to buy coins before the sale, because this process only takes less than 20 seconds.
Polka starter
Polka Starter is considered a “brainchild” of the Polkadot ecosystem – one of the world’s most popular cryptocurrencies. The launch of Polka Starter in 2022 is seen as a focal point in the launchpad platform.
Advantages
- In the process of using Blockchain, Polka Starter does not require users to provide KYC – identifying customers.
- Is a prestigious name in the blockchain village
Limit
- To participate in the project, users must spend 3,000 POL (equivalent to $ 21120, with market price at 9pm Vietnam on July 25, 2022).
- The Polka Starter platform requires investors to have knowledge of decentralized finance (DeFi); otherwise it will be quite difficult when you invest in DeFi projects.
Pancake Swap IFO
Pancake Swap is a decentralized finance (DeFi) exchange platform that attracts users no less than Polka Starter.
Advantages
- Most of the projects are tested and generate great profits for users.
- The platform does not require users to provide KYC (customer identity verification code).
Limit
- Users must have a high degree of decentralized finance (DeFi) knowledge; to avoid buying bad projects.
- To be able to trade, the profile creation fee is 1.5 CAKE (equivalent to $5.02, with market price at 9pm Vietnam on July 25, 2022). A rather high price compared to the above platforms.
- When participating in Unlimited Sale, buyers of large quantities of tokens will have to pay a tax of 0.5%. This makes it difficult for large professional investors.
Kucoin Spotlight
Spotlight is also a quite famous launchpad platform when it is launched by Kucoin. Kucoin is a popular coin exchange and is trusted by many investors around the world.
Advantages
- Spotlight has a fairly thorough censorship of projects before putting them on launchpad for investors.
- Spotlight is also an attractive launchpad platform compared to the above platforms; The platform has many promotions for the first individuals to sign up.
Limit
- To participate in the Spotlight Kucoin project, users must own 10 KCS (equivalent to $ 97.87, with market price at 9pm Vietnam on July 25, 2022). This is also a pretty high price compared to the platforms above.
- Approved projects often bring unattractive profits to investors
Conclusion
Hope the above article of Top10mmo.com has helped you understand what a launchpad is and can give you an overview of launchpad in crypto. Please regularly visit Top10mmo.vn to update more useful knowledge.
