Crypto launchpads have been making waves in recent years and rightfully so. They have provided some fantastic opportunities in the space for investors and creators alike. But you may be wondering, what are they and what benefits do they bring?
Don’t worry, in this article, I will be covering all aspects of crypto launchpads so you can reap the rewards. So without further ado, let’s jump right in.
Crypto launchpads are platforms that are used to raise funds ahead of a project launch. They provide investors with the opportunity to invest early while also funding project development for creators.
What are crypto launchpads?
As mentioned previously, crypto launchpads facilitate the process of investing and raising funds ahead of a project launch. They host a variety of different projects on one website.
In essence, it is a one-stop shop for finding up-and-coming projects. This helps users navigate and analyze new tokens while offering creators more visibility for their projects.
The benefits of launchpads
Early access – although risky they provide fantastic investment opportunities as you get early access to the project. Platforms usually reward investors with bonus tokens and if you find a reputable project the price is usually significantly lower than the launch.
Funds development – not only that, but they also benefit creators. They provide much-needed funding for new projects. This helps new projects with development while also rewarding the community in return.
Facilitates research – as there are a considerable number of projects on this platform it is easy for investors to analyze them. Instead of going to individual websites, users can compare them in one place.
Marketing – launchpad platforms often have a considerable user base. When projects get added they get access to this user base and more attention is brought to the project.
Filters out scams – lastly, launchpads often act as intermediaries which weed out any bad actors. Projects are verified and vetted to filter out any scams. This provides a more secure way of investing.
The risks of launchpads
It is important to do your research before buying into NFT launchpad projects as scams are rife. Here are a few examples:
Rug Pulls – this is a common scam whereby a project does not fulfill its promises after taking the user’s funds. Essentially, this scam involves projects pumping up the price of recently launched tokens. Then while extracting as much value as possible they abandon the project and the price crashes. To learn more about rug pulls click here.
Phishing – this is another prominent issue in the space. Essentially, scammers create fake websites which imitate legitimate launchpads. Unsuspected customers who interact with these websites compromise their wallets. Consequently, scammers gain access to their funds, and their wallets are drained.
Hacks & bugs – lastly, we cannot talk about crypto without mentioning hacks. Smart contracts and wallets often get exploited due to bugs in the code. That is why it is vital you use a hardware wallet to protect against hacks. The hardware wallet I recommend is the ledger nano X. You can check out my review by clicking here.
The best crypto launchpads
Binance launchpad – unless you have been living under a rock you have probably heard of Binance. This company is a behemoth in the space and rightfully so. But what you may not know is that they have a launchpad and it’s amazing.
Featuring an extensive vetting system you can be ensured that only reputable projects get listed. Additionally, the user interface is intuitive. The main benefit of Binance as a launchpad for investors is that it’s a centralized exchange.
You simply set up an account rather than going through an arduous process of using a cryptocurrency wallet. Moreover, they have fully fledged customer support.
Lastly, Binance launchpad provides a user base of over 30 million people. Therefore, you can be sure your project will get the attention it deserves.
OKX Launchpad – jumpstart is the launchpad for the popular exchange OKX. As stated on their website, this platform offers high exposure with millions of visitors and fair participation. In my opinion, this is fair to say.
The main benefit of this platform is the mining model. Instead of buying tokens, users stake their OKB exchange tokens to receive tokens from up-and-coming projects. Once the mining period is over, they receive their stake back and the rewards generated.
For creators, it is a great platform for connecting with OKX’s global community. However, the application process is quite competitive so that is something to bear in mind.
Overall, launchpads provide a great opportunity for investors to find projects early and for projects to raise funds. If you do your research on these platforms you can find some real gems. However, it is important to be careful as scams and hacks are common. But hopefully, if you use the platforms mentioned in this article you will avoid them. Thanks for reading.
Want to learn about NFT drops? Click here to read my previous article