Trying to get assimilated with the various participation procedures, rules, and regulations of different launchpads can be a daunting task for novice and seasoned crypto veterans alike. There are many factors to consider when choosing the most suitable launchpad for you. Choosing the launchpad is the first hurdle of many that you must overcome before finally being able to participate in token offerings such as IDOs. Some factors to consider before taking the next steps with your desired launchpad include; the cost of entry, tier structure, allocation sizes, guaranteed vs lottery-based participation, and past successes. The cost of entry is a key consideration when choosing a launchpad. How many native launchpad tokens do you have to buy and stake and how much does each token cost? This is your initial investment outlay that almost always comes before you even have the chance to participate in token offerings. Some of the top launchpads have a very high cost of entry while other lower-tier launchpads may offer entry with little initial investment required. Investing first in launchpad tokens may also increase your exposure to price risk so doing your own research on the launchpad token’s price history is also important. Some launchpads have tens of thousands of participants and they may spread their allocations very thin in order to get the maximum number of people involved. This may lead to individual allocations that are only worth a few dollars. If the initial outlay is high and the maximum individual allocation is very low, the risk-reward relationship may not be ideal for you. The size of allocations may also depend on the launchpad’s tier structure which groups stakers depending on the number of launchpad tokens they have staked. Launchpads may also institute different participation structures whether it be guaranteed allocations or lottery-based allocations. With guaranteed allocations, everyone who is a staker can participate until the total token allotment is sold out. With lottery-based allocations, you receive lottery tickets based on the number of launchpad tokens you have staked. You may get lucky and win the right to purchase an allocation or you may have a run of bad luck and miss out on token offerings that you were really eager to participate in. Finally, prospective launchpad participants should check the past successes (or failures) of the launchpads they are researching. There are many risks involved with investing in crypto startups, but if you observe a launchpad consistently has successful token offerings, you may feel more comfortable investing through them.
2 | Getting Started With Launchpads
2 min read
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