What Is A Crypto Launchpad And How Can It Benefit Cryptocurrency Investors?
Early investors in a crypto project always reap the most benefits. They get entitled to generate substantial profits as they stay dedicated to an initiative since its inception. In this regard, a crypto launchpad could be the best place if one seeks investment opportunities in a startup crypto project.
With the growth in cryptocurrencies, the world is witnessing an increase in these platforms. Read on to know what crypto launchpads are and how they work.
What is a Cryptocurrency Launchpad?
If you are new to the crypto industry, you must be wondering, “what is a launchpad?”. In simple words, a crypto launchpad is a platform where you get an opportunity to invest in a crypto project during its early days before it becomes publicly available. Launchpads are deemed as lucrative investment and opportunities for early investors through token sales.
The cost of using a launchpad is generally on the lower side or non-existent. This has encouraged more companies to take this route for crypto project funding. Both investors and creators benefit from debuting a project via a crypto launchpad. New projects are assessed robustly at these platforms, and users simply have to complete KYC verification to begin the process.
Why Use a Crypto Launchpad?
A crypto launchpad benefits both the creator and the investor. These platforms act as a link between entrepreneurs and investors, allowing startup companies to generate funds for development. At the same time, early investors get the opportunity to benefit from early-stage deals.
Here are the benefits of a crypto launchpad:
- For investors, a launchpad offers early access to an innovative crypto project. The most crucial benefit is that investors get access to coins at a reduced price. The price of tokens can skyrocket once they become available on cryptocurrency exchanges. So, purchasing them during the early stages can be a lucrative investment decision.
- For creators, launchpads offer substantial funding that helps in venture development and business expansion. Additionally, a launchpad is the perfect platform for the soft launch of a cryptocurrency before making it available to crypto exchanges.
Also Read: What Is Cryptocurrency Mining And How To Mine Cryptocurrencies
How to Purchase a Token on a Crypto Launchpad?
Before trying your hands at a crypto launchpad, you should understand the various rules associated with these platforms. These include the minimum amount needed to participate, distribution schedule, lock-in period for a token and more, which varies from one launchpad to another. These details are typically available to the investors on the launchpad page.
After acquainting yourself with a launchpad, you can follow these steps to purchase a token on a crypto launchpad.
Step 1: Set up a crypto wallet if you do not already have one. You might need to pay network fees in the form of cryptocurrency.
If you are opting for a DEX-based launchpad, you’ll probably need to set up a Metamask wallet.
Step 2: On the day of the crypto sale, connect your wallet to the launchpad to stake your tokens. You can also redeem the excess funds from your crypto wallet after token allocation.
What are the Top 5 Crypto Launchpads?
Although a crypto launchpad offers a profitable investment opportunity, it carries a certain level of risk. Thus, it is increasingly important for you to choose a reliable launchpad.
Mentioned below are some of the best crypto launchpads where you can find newly available crypto projects:
1. Binance Smart Chain Pad (BSCPad)
This is the first launchpad on the BSC network. The platform is based on an entirely decentralised network, which helps blockchain-based projects with fundraising, liquidity and token distribution.
BSCPad is unique from its competitors because of its “two-round allocation model”. It allows pledged allocation per Tier. Potential investors can purchase this during the first round. Any leftover tokens from the initial round will be sold off on a First Come First Serve basis between the remaining investors in the second round.
2. BullPerks
This is a decentralised venture capital and a multi-chain launchpad. The platform is well-known for its transparent approach. The founders of this crypto launchpad are well-known advisors and entrepreneurs for various fast-paced projects. The official token of the platform ($BLP) is based on the BSC Network.
The complete decentralised nature of this platform is reflected by its transparent 6-tier system. The aim is to offer a fair share of allocations to each investor. They are a community-dedicated crypto launchpad with experienced minds in the developing and marketing team.
3. TrustSwap
TrustSwap is also a decentralised launchpad on the BSC network. This crypto launchpad operates on its native token, $SWAP. It offers next-generation multi-chain swaps and various other solutions regarding crypto subscriptions and payment issues.
Additionally, $SWAP is also used for Smart Locks, Staking and Smart Swaps. Launched in 2020, the primary objective of TrustSwap is to make smart contracts more empowering and mainstream.
4. DuckSTARTER
Similar to the above-mentioned launchpads, DuckSTARTER is also a decentralised crypto launchpad. It releases blockchain-based projects for a significant number of investors. This crypto launchpad operates under the DuckDAO community and features the same token, $DUCK. This token is supported by both Ethereum and the BSC network. The token is a crucial ingredient for operating on this platform, and it also allows Tier upgradation.
Moreover, this platform provides users with organic and solid growth advice after investors pass the vetting process.
5. WeStarter
This is a crypto launchpad on the HECO network. It came into existence during the first quarter of 2021. The platform supports the initial exchange of projects that are based on Ethereum, BSC and HECO. However, WeStarter is planning to add Avalanche, Polka and other public Blockchain networks on its radar.
This crypto launchpad aims to be a comprehensive platform for Initial Wallet Offerings (IWO) for most blockchain assets. As of now, this platform has released as many as 16 projects.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Also Read: Cryptocurrency Trading: Process, Different Styles And Trading Strategies
Final Word
A crypto launchpad could be the ideal platform for you if you are seeking profits by investing in up-and-coming cryptocurrencies. Timing the investment is of utmost importance if one wishes to get early access to a crypto token. However, ensure to conduct thorough research before delving further.
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FAQs on Crypto Launchpad
Ans: DEX refers to decentralised exchange. It is a Peer-to-Peer (P2P) marketplace which allows users to trade cryptocurrencies in a non-custodial manner. Investors do not require intermediaries to facilitate the transfer of funds on a DEX platform.
Ans: Similar to any other investment avenue, a crypto launchpad carries some risk. However, they come with heightened security measures that are developed on a decentralised network, which reduces the risk of scams. These platforms also ensure that the project founders remain visible to the investors.
Ans: You are allowed to buy new projects on a launchpad after your first buy-in. You can upgrade your tier via subscription-based plans. You receive access to various perks and tools through such subscriptions. Meanwhile, you get the opportunity to grow your portfolio. As your portfolio grows, you can scale your investments.
Ans: To be eligible to enter a crypto launchpad, a startup has to submit its idea to the platform. It is then reviewed by the members of the launchpad community. Before deciding, the community considers a few things about the company, such as potentiality, scalability and team composition. This procedure is called vetting, and a startup can enter a launchpad only after passing this process.
Ans: The profits one can generate from a crypto launchpad are not fixed. Just like other investment avenues, the gains generated might vary; it can reach multiples of what you had invested. That said, you can also incur losses from investing in new crypto projects. However, its occurrence is highly unlikely if you are knowledgeable about your crypto investment.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
