What is crypto Launchpad ?

Increasing global adoption of the crypto economy by investors fueled the emergence of a new fundraising platform: Crypto Launchpad. Launchpads permit investors to discover and invest in crypto's before they are listed publicly on the exchange and hit the crypto market. Investors can buy tokens at cheaper prices and gain more profit by selling them later when their value increases in the market.

Despite the market volatility, crypto has experienced a significant rise in recent years. US President Joe Biden strengthened the regulations on the crypto economy. Hence, the Crypto Launchpad could be the ideal platform for investors. It allows crypto founders to create awareness and generate capital for their businesses at a small price. The launchpads also provide a secure platform for investors and founders to discover and get connected with each other.

What is a crypto launchpad?

A crypto launchpad also referred to as crypto incubator is a Decentralized Exchange (DEX)-based platform used for introducing cryptos and fund-raising.

Before being publicly listed on the exchange or on a trading platform, early-stage sales are made available to the crypto investors at a better bargain price. As the launching cost in the launchpad is low, more projects are heading to the launchpads for fund-raising.

Also, launching crypto in the launchpad offers high security to investors and founders and provides the new founders access to a community of crypto investors and enthusiasts ready to explore new crypto.

Top crypto launchpads have a rigorous screening process for new cryptos. In contrast, the Know Your Customer (KYC) process is performed by a third party as a primary requirement for the verification of new users.

How does it work?

Crypto launchpad platforms connect crypto projects and interested communities. It helps the founders to raise money from potential users and investors and provide a chance for the investors to maximize their return on investment.

Transparency and security are two main features that attract crypto investors. New users are subjected to the KYC process for identity verification during account creation. This makes it harder for an anonymous person to manipulate the system by making transactions using several pseudonyms.

Each launchpad will have its individual set of exclusive crypto projects and their up-to-date status. Interested investors should be able to access significant information such as price and start date regarding these crypto projects.

Investors could purchase specific tokens at the start of the sale. Token sales on the launchpads are similar to blockchains, with superior transparency and tracking capability of the token distribution method. Thus, retail investors can easily invest in early-stage tokens. It encourages even distribution of tokens among crypto investors instead of pump-and-dump.

Why Crypto Launchpad?

Crypto launchpads serve as a bridge between crypto startups and investors. The startups get access to the required funds for the project development, while investors get access to the early-stage deals.

Benefits of Crypto Launchpad

Low fee - Some launchpads don’t charge any fee for crypto listings and some of them charge a nominal fee for listings.

Quick and Easy - Some launchpads make it quick and easy to start a crypto project without many barriers.

Security - Launchpads offers high security to both founders and investors as they do not store the funds.

No processing period - Cryptos are available immediately after purchase without any processing period.

Benefits for the Investors

Investors who are interested to invest in projects that are safe, profitable, and earn a good return on investment, had to check for the security commitment level of the launchpad. It should follow strict security protocols, performs proper KYC verification, and safeguard the personal information of the investors.

The minimum staking amount and perks related to each launchpad will vary. These factors should be analyzed carefully before deciding on the launchpad.

Benefits for the founder

Founders interested in launching their project through a crypto launchpad should assess the promotional capabilities of the platform and the supportive nature of the community. It is highly essential to check the project screening process, criteria, fairness, and credible aspects of the launchpad’s terms. A supportive community is highly beneficiary as other members can promote the projects to the users and potential benefactors.

Future of Crypto Launchpads

Crypto launchpads are new platforms aimed to facilitate funding of crypto projects. They aim to increase the confidence of investors and reduce the distrust concerning cryptos.

By promoting legitimate crypto projects and rejecting scammers, launchpads provide greater security to investors and founders and improve the market flow. It helps investors to lower the risks while providing additional opportunities for the founders to market their projects.

As a bonus, regular investors can nowadays access investments formerly reserved for institutional investors and venture capitalists. The development of crypto launchpads should make crypto investment easier and safer. With more investors, it is hoped that the crypto industry will continue to grow.