What is Launchpad?

A crypto launchpad is a platform that helps new cryptocurrency projects raise funds and launch their tokens by connecting them with early-stage investors. Also known as IDO (Initial DEX Offering) platforms, these launchpads provide a secure way for projects to gain visibility, attract investment, and distribute their tokens before they hit the open market.

For investors, launchpads offer an opportunity to buy tokens at lower prices before they become publicly available, often leading to higher potential returns.

Platforms like Binance, KuCoin, MEX Global, and Lemon Cash, among many other exchanges, provide new projects with access to funding while offering investors the opportunity to acquire tokens at an early stage, often before they become available to the general public.

However, early-stage investments in Web 3.0 projects or cryptocurrency companies do not guarantee profits. In fact, more than 80% of pre-sold projects are eventually abandoned, leaving investors with significant losses.

Because of these risks, financial educators discourage this investment strategy as a standard approach. Instead, they recommend ICO and launchpad investments only to those who have received proper guidance and fully understand the risks involved.

Simplified Example

Imagine a new tech startup wants to raise money before launching its product. Instead of going to a bank, they use a crowdfunding platform where early supporters can invest before the official launch.

A crypto launchpad works similarly but with blockchain technology. It helps new crypto projects raise funds and gives early investors access to discounted tokens before they hit public markets.

History of Launchpads

Early forms of token fundraising, like ICOs (Initial Coin Offerings) in 2017, lacked security and regulation, leading to many scams. Launchpads emerged to improve investor protection while still allowing projects to raise funds in a decentralized manner.

So the origins of crypto launchpads dates back to 2018, when Binance launched its Binance Launchpad platform which helped legitimize and popularize the concept . This platform was designed to allow blockchain companies to raise funds securely and efficiently.

Since then, dozens of launchpads have appeared, each with its own model and selection process.

Examples

• Binance Launchpad – One of the most trusted launchpads, backed by Binance, which has helped launch projects like Axie Infinity (AXS) and Sandbox (SAND).

• Polkastarter – A decentralized launchpad built on Polkadot, designed for cross-chain token sales.

• TrustSwap Launchpad – Specializes in secure token launches and supports vesting schedules to prevent early investors from dumping tokens too quickly.

Related Terms

• ICO (Initial Coin Offering): An early form of crypto fundraising, often compared to IPOs in traditional finance.

• IEO (Initial Exchange Offering): A token sale that takes place on a centralized exchange instead of a decentralized one.