Launchpads are nothing more than platforms for launching tokens before they are available on the market. This process is also known as pre-sales.
Binance was the first to deliver this new token release model, running them directly on its own centralized servers. Teams that create a new token benefit in two ways: saving time on developing a smart contract and expanding the market, as well as gaining notoriety for launching a token on the Binance launch platform.
With the advancement of technologies in decentralized finance, this has also become possible in blockchains. In this way, a system hitherto centralized has become more efficient.
This is where decentralized applications (dApps) for launching tokens arise.
One of the biggest launchpads initially was Bounce, an Ethereum-based dApp. It facilitates interaction with users, as teams can register on the platform, organize the launch model for their tokens and receive cryptocurrencies in return, mainly Ether.
After reaching the purchase limit, users receive the project token for a price lower than that for launching to the open market.
Using this model, teams are able to collect funds for development in a few days – or even hours – with marketing from the launchpad itself. In addition, a range of users who trust it and are interested in certain projects are ensured by the platforms that the project to be launched on it passed through a strong filter, reducing the chance of hits.
Launchpads as an investment niche
With the success of Binance Launchpad and Bounce, many other launchpads have emerged. Currently, the biggest highlights are Polkastarter, Kickpad and BSCPad, providing a more user friendly experience in exchange for larger investments.
To learn more about launchpads, see the “DeFi” page of the largest aggregator of DeFi content in Brazil, the Portal DeFi.
To participate in most current platforms, the user needs to purchase a stipulated amount for each token launchpad on their platforms, thus increasing the chance or guaranteeing participation in the pre-sale of the tokens.
The amount needed to have a qualifying tier or chance to allocate in the pre-order is high, with minimum values around $ 5,000 and maximum exceeding $ 20,000 on the largest launchpads.
However, this does not prevent investors from participating, due to the “high risk and high return” nature of the investment.
It is common for investors on these platforms to report gains of 50 or even 100 times the amount allocated, even though the allocation guarantee is often low to lower levels, usually around 10 dollars for pre-sales.
A long way ahead
Despite being widely discussed in advanced conversations about cryptocurrencies, launchpads are still a new investment option in DeFi. There is a lot of room for growth and maturation.
As new token launch strategies emerge, new launchpads with different proposals appear, and blockchains are increasingly inundated with new tokens on a daily basis.
Some projects, even in DeFi, prefer to adopt an alternative that uses KYC, known as “know your customer”. That is, they collect personal data such as photos and documents of users so that they have access to the platform in a more advanced way and with some advantages.
Meanwhile, other platforms are betting on full decentralization and avoid any kind of practice that interferes with user privacy.
Thus, it is noted that there is a long way for launchpad models to grow and innovate in the market.
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