5 of the best crypto launchpads in 2022
Share this article
An editor at Coincrop
23 Jan 2022 | 9 min read
any individuals invested in the cryptocurrency space are keen to invest in early stage projects where they can acquire new tokens at a low price. Doing so successfully across multiple projects is tricky often requiring much time and research. Another option is to use the services of a crypto launchpad which allows individuals to invest in early stage projects.
In this guide:
Disclaimer: All of the information written on Coin Crop is without influence and based on our analysis. No guarantee is offered concerning the accuracy of this information and therefore, any individual following up on it does as such completely at their own risk. Rates are correct at time of publication.
What is a crypto launchpad?
Crypto launchpads (sometimes referred to as IDO platforms) are services for launching new crypto projects, new tokens and raising liquidity. It can be thought of as a crowdfunding for a new project on a decentralised exchange.
Given the nature of decentralised exchanges, there are no KYC checks or limitations on the type of investor – anyone can participate. Individuals are essentially performing the role that was previously that of large-scale investor or venture capitalist.
Crypto launchpads are not a guaranteed “road to riches” – key to being successful is researching successful launchpads and their past successes.
There are no shortage of launchpads and in this guide we look at some of them.
What is a crypto launchpool?
A launch pool is a variation of a launchpad. Typically, launchpad users are swapping their tokens for a newly released token issued during the sale process. Launch pools normally lock their tokens into a pool for a specific period in order to earn the new tokens being distributed.
How do I get started?
The most important starting point is to understand the terms of the launchpad – you need to understand the rules of participating in the platform. These rules might refer to the minimum number to tokens required to take part and the initial token lock period.
Once you understand the rules of the launchpad then you need to purchase the tokens for participation. Purchasing earlier on in the process may be more financially beneficial.
Given that most launchpads are decentralised, a wallet such as Metamask will be required and connected to the relevant network (e.g. Avalanche, Binance Smart Chain etc.).
Play to earn looks set to be a very exciting proposition in 2022 and the GameFi launchpad allows users to capitalise on this opportunity. GameFi projects include lotteries, PVP games, NFT marketplace, betting and fantasy gaming.
GameFi consists of five components: Yield Guilds, Global Market, Aggregator, Accelerator and Launchpad.
The GameFi ecosystem has a number of fees which benefit the players in order to encourage growth:
1) Acceleration fees due on revenue collected in a game
2) Yield fees gathered from play to earn games
3) Trading fees levied on product trades made in the game market
GameFi is already one of the top performing launchpad platforms. It has huge potential and a track record of excellent NFT games with more being introduced all the time.
PancakeSwap has established itself as a very popular decentralised exchange platform the operates on the Binance Smart Chain (BSC) blockchain. As was as exchange functionality, a launchpad operates allowing BSC startups to fund raise for their products.
In order to take part in a token sale, individuals have to provide liquidity to a BNB-CAKE pool – after purchase both of these tokens and adding them to a liquidity pool, liquidity pool tokens are issued which can then be used to participate in the token sale.
Past project successes on PancakeSwap IFO have included the Horizon Protocol (HZN).
Given that PancakeSwap is decentralised, there is no KYC process – individuals from any jurisdiction could participate.
The Spotlight Launchpad is offered by the Kucoin exchange and allows investors to purchase early tokens in projects. In order to take part, users need to hold the Kucoin native token (KCS). In the days leading up to the launch sale, users must lock their KCS and then make the purchase at the end of the subscription period.
Kucoin Spotlight has past success with projects such as Coti (COTI), Trias (TRY), Chromia (CHR) and Bitbns (BNS).
There are limitations similar to other centralised exchanges such that individuals from the U.S. and some other jurisdictions are not able to participate.
Binance was one of the first organizations to offer a launchpad service in which new projects could raise funds from token sales. The process of participating holding BNB in the period leading up to the token sale – payment for the newly purchased tokens is also made in BNB at the end of the subscription period.
Past projects that have raised funds successfully on the Binance Launchpad include Axie Infinity (AXS), Perlin (PERL), Polygon (MATIC) and WazirX (WRX).
Using Binance Launchpad brings the benefits of an exchange with a good reputation and allows individuals to have access to high profile projects. Individuals in the U.S. and some other jurisdictions are not able to participate.
PolkaStarter takes a different approach to project investing as the operation is a decentralised protocol. Given the nature of a protocol, there is no vetting of the listing process – instead the communities that launch the pools perform this process.
PolkaStarter operates a native token – 3000 of these tokens are required to participate in a particular project. The price for the token being used by the new project can be dynamic or fixed – participating is open to anyone with no jurisdiction restrictions.
PolkaStarter is available for use on the following blockchains: Binance Smart Chains, Ethereum and Polkadot.
CoinLoan combine the best of traditional and novel finance helping you borrow, swap and grow your assets.
Compare over 47,277 CeFi and DeFi products across more than 226 organizations here