What is Launchpad
Crypto Launchpad, or Crypto Incubator, is a token public sale platform for crypto projects. It allows investors to invest in early-stage crypto projects before they go public.
There are various types of Launchpads. In addition to standalone platforms, it is often embedded as a feature within a crypto exchange. The public sale methods also differ depending on the type of exchange/platform. For example, the public sale method for Launchpads on DEX is IDO, while the public sale method for Launchpads on CEX is IEO. On the other hand, a standalone Launchpad platform may include various public sale methods such as VC, IDO, and INO (Initial NFT Offering).
To learn more about IDO and IEO, please refer to What is ICO / IEO / IDO section.
What are the benefits of Crypto Launchpad?
- The public sale on Launchpad is an excellent opportunity for investors to participate in primary market investments. Token prices in the primary market are often lower than in the secondary market. Therefore, Launchpad can allow investors to buy early-stage project tokens at a lower price and sell them for profit when the price rises in the future.
- For crypto projects, Launchpad can help them expand funding channels. It is also a means of Go-to-Market for the project team. Launchpad can also help the project team attract more retail investors and raise funds more evenly, thereby reducing the risk of price crashes caused by whale sales in the future.
How to participate in Crypto Launchpad public sales?
Currently, most of the public sales on Crypto Launchpad are in the form of IDO. Among them, token staking is the most common Launchpad IDO way to participate.
In this way, investors need to stake platform tokens to get the opportunity to join IDO. The more tokens they stake, the greater the probability of winning IDO allocation and the more project tokens they can purchase.
For example, in DAO Maker, an investor staking 2,000 DAO tokens has a chance of about 4.6% of winning IDO allocation, while an investor staking 50,000 DAO tokens has a probability of nearly 149%. Other Launchpads that use this participation method include BSCPad, Polkastarter, and Avalaunch.
In addition to token staking, a few Launchpads use other public sale participation methods such as fair launch (e.g., Camelot Launchpad uses an appropriate launch model). In this way, all participants can receive IDO allocation, and the allocation amount is the same. The final price of the token is determined by a price discovery mechanism and dynamically changes based on supply and demand.
To learn more about Camelot Launchpad's mechanism, please refer to the "What Is Camelot? Innovative DEX with Customizable Liquidity & Launchpad on Arbitrum - Ratings & Analysis".
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