From startup founders to industry leaders, everyone wants a piece of the blockchain pie. From a little-known technology to a dominant force, blockchain and crypto have experienced explosive popularity. But, without the proper experience, starting a new crypto project can seem highly daunting. This is where crypto launchpads come in, providing a streamlined platform for all your crypto needs.
What is a Crypto Launchpad?
A crypto launchpad is like an incubator for new blockchain projects. They are platforms that allow crypto projects to raise funds while giving investors early access to their tokens.
Typically, a crypto launchpad offers tools to assist with the token launch process, including token issuance, distribution, and management. Launchpads may also provide marketing and community support to help the project with visibility and attract investment.
This process benefits both investors and founders. Investors gain early access at a significantly lower price, while founders have a low-cost platform for fundraising.
Read more: Guide To Evaluate Crypto Projects
How Does a Crypto Launchpad Work?
There are several stages in the functioning of a crypto launchpad. The first stage involves submitting a project proposal. This is reviewed by the launchpad before the project is approved for launch.
Once the proposal is approved, the project begins to receive help from the launchpad team. It begins with assistance in creating the project’s native token. The launchpad helps developers determine the tokenomics, including total supply, distribution and other such factors.
Next, the token is offered for sale on the platform. It may be sold at a fixed price or based on an auction format. Investors who have signed up for the launchpad can choose to purchase the token with their crypto funds.
The benefits of a launchpad extend to the post-sale stage. At this level, the launchpad assists new projects in getting their tokens listed on crypto exchanges. Additionally, they help the project market its token and build a community.
Types of Crypto Launchpads
There are several types of crypto launchpads, each with its benefits:
- Exchange Launchpads: These launchpads are run by crypto exchanges. This reduces barriers to listing and allows projects to launch their tokens directly on the exchange. Examples include Binance Launchpad and Huobi Prime.
- Standalone Launchpads: These are independent platforms that specialise in helping projects launch their tokens. While they do not offer greater integration, they may offer better advice and assistance through their specialization. Examples include DuckSTARTER and DAO Maker.
- Community Launchpads: These are launchpads that rely on the support of their communities to select and launch new projects. Through this method, crypto projects can begin building their community at an earlier stage. Examples include Polkastarter and TrustPad.
- Venture Capital Launchpads: These launchpads are run by venture capital firms and provide funding and support to new crypto projects. Examples include Alphabit Fund and AU21 Capital.
- Blockchain-based Launchpads: These are launchpads that are built on top of a specific blockchain. They utilize its features to provide token launch services over a single network. Examples include Polkadot Launchpad and Cardano Launchpad.
Benefits of Using a Crypto Launchpad
Crypto launchpads simplify the process of receiving funding. They offer access to a large pool of potential investors, which makes it easier for projects to receive money and start development.
Launchpads have experience in successful token sales and can guide new projects through the process. This can help ensure that the token sale is structured in a way that is attractive to investors and compliant with regulations.
While getting off the ground is essential, a project’s long-term success depends on its ability to cultivate a community. Launchpads offer a range of services which include help with marketing and building a community around a crypto project.
Both projects and investors are vetted before joining a launchpad. While projects must submit proposals and be approved, investors have to complete KYC processes. This helps reduce the possibility of fraud and ensures projects and their investors are legitimate.
The launchpad ecosystem is made up of many different elements. But some of the most essential parts are made up of:
- Launchpads: At the core are the launchpads themselves. They provide the tools and support various projects to get off the ground and launch their tokens.
- Crypto Exchanges: After the initial coin offering, tokens must be listed on an exchange to create liquidity. This also allows more users to join the platform as tokens are more easily available to purchase.
- Venture Capital: Just as in traditional businesses, venture capitalists can have a large role to play in this landscape. Not only do VC firms host launchpads and provide funding, but they can add to projects using their extensive business networks.
- Community: Finally, no project is complete without its passionate community. Public-driven launchpads and DAOs enable transparency and decentralisation in the launchpad process.
How to Use a Crypto Launchpad?
Here is a step-by-step guide on using a crypto launchpad:
- Research Launchpads: Start by researching different crypto launchpads and compare their features and services. Look for launchpads with a good track record of successful token launches and find one that suits your needs.
- Submit your Project: Once you have selected a launchpad, submit your project proposal for review. The launchpad team will review your proposal and determine if it meets their requirements and criteria.
- Token Creation: Once your project has been approved, the launchpad team will help you create your native token. This will include determining tokenomics such as the total supply, distribution, and other factors.
- Token Sale: After your token has been created, the launchpad team will help you launch your token sale. This may involve setting a fixed price or using an auction mechanism to determine the price of the token. Investors can then purchase your tokens using their crypto funds.
- Post-Sale Stage: After the token sale, the launchpad team will assist you in getting your token listed on crypto exchanges to provide liquidity to investors. They will also help you market your token and build a community around it.
Future of Crypto Launchpads
The startup ecosystem is rapidly expanding, and so is the demand for blockchain-based solutions. The need for launchpads is only going to increase in the coming years as more businesses access this low-cost source of funds.
Additionally, regulation and government support of the crypto industry may push more players towards launchpads for their financing needs. This will spark innovation and greatly boost engagement with blockchains.
Read more: What Are Blockchain Layers
Crypto launchpads have revolutionised the way new blockchain projects raise funds and gain exposure. They provide a streamlined platform for entrepreneurs to launch their projects, and for investors to gain early access to new tokens. As the blockchain industry continues to grow, the demand for launchpads is likely to increase. This will drive innovation and create new opportunities for entrepreneurs and investors alike.
You can read more about Web 3.0, What is DEX and blockchain on ZebPay blogs. Join the millions already using ZebPay Australia.
FAQs on Crypto Launchpads
What Are The Benefits Of Using A Crypto Launchpad?
Using a crypto launchpad provides access to funding, expertise, post-sale support, and legitimacy. It can also simplify the token launch process and help build a community around the project.
What are the risks of using a crypto launchpad?
There are some risks associated with crypto launchpads, such as market volatility, fraud and regulatory uncertainty. You must conduct due diligence and evaluate the risks and potential rewards before participating in a token sale.
How can I participate in a token sale through a crypto launchpad?
To participate in a token sale through a crypto launchpad, you need to sign up for the platform and complete the necessary KYC checks. You can then purchase the project’s tokens using your crypto funds during its sale.
How can I choose the right crypto launchpad for my project?
Choosing the right crypto launchpad involves researching and comparing different launchpads based on their track record, features and services. Look for launchpads that have successfully assisted similar projects and provided the support you need for a successful token sale.