Crypto Launchpads, also known as crypto incubators, allow startup crypto-based projects to fundraise by offering their tokens in exchange for capital. Launchpads serve as a bridge linking investors around the globe to innovative and promising startups. Investors are able to purchase tokens, usually at a discount, before the token is listed on an exchange for the general public to trade. Projects are able to efficiently raise capital and expand their reach throughout the cryptosphere. There are dozens, if not hundreds, of crypto launchpads with new ones seemingly popping up daily. In this course, let us take you through the launchpad basics so you can make better informed decisions in the launchpad space.
The Role of The Launchpad
Cryptocurrency and token launchpads stand between crypto investors and startup crypto projects aiming to provide value to both groups of stakeholders. Crypto launchpads provide a way for new projects to raise capital while allowing investors to gain early access to tokens, often at a discount, before they are listed on an exchange.
From the investor’s point of view, using reputable launchpads reduces the risks associated with investing in smaller and newer projects. Launchpads have vetting processes that help prospective investors make informed decisions. Most launchpads have also instituted insurance systems to help protect investors from exit scams such as rugpulls and other forms of fraud. Investors are also eager to participate in pre-sales on launchpads simply because they have witnessed incredible gains from launchpads in the past and hope to catch that next incredible investment opportunity.
From a project’s perspective, releasing a project can be an expensive and lengthy process. Crypto launchpads help lower the barrier to entry created by these high costs of developing the project and launching its token. The team behind a project can also make use of different launchpad resources and connections to further its credibility and reach both within and outside the industry. Projects may gain access to marketing and other funding channels through launchpads which could possibly be the difference between a successful project and an unsuccessful one. Launchpad platforms also aim to help projects grow a broader community of platform or product users. Many of the top launchpads reach tens of thousands of prospective investors and users.
Crypto launchpads are democratizing access to cryptocurrency investments by allowing early access to a great number of people. When designed with both projects and investors in mind, crypto launchpads can offer incredibly successful token launching events which are a win-win for all those involved.