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What is Binance Launchpad?

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binance launchpad

Key Takeaways

  • The Binance Launchpad is a platform created by Binance to help launch new crypto projects.
  • The platform assists blockchain startups with fundraising and raising awareness through Initial Exchange Offerings (IEOs).
  • Some successful projects launched on Binance Launchpad include Axie Infinity (AXS) and Polygon (MATIC), to name a few.

Launching a new crypto project can be very difficult. However, launchpads are a popular way for these projects to launch their tokens to early community participants.

What Is A Crypto Launchpad?

A crypto launchpad is a platform that helps crypto startups launch and raise funding. It is typically run by a team of experienced professionals who can support, guide, and advise startups. It also has a network of users looking for crypto project startups with great potential.

How Do Crypto Launchpads Work?

The process is entirely simple; most exchanges and launchpads have lotteries that allow users to buy tokens at a steep discount. To qualify, users usually must buy the launchpad or exchange token and stake it for a certain period.

On Binance, for example, you stake BNB for one month, and depending on how much you staked, you can buy a certain amount of the launchpad token. The downside is that you are locked into holding the exchange or launchpad token for some time.

Binance Launchpad

Binance Launchpad is a platform where promising crypto projects can raise money by selling their new tokens to Binance users.

Basically, it is an Initial Coin Offering (ICO) within Binance’s platform where you take the value that you have, usually in BNB coin, and swap it by investing in a new project.

During a launchpad event, there will be a specific time when you can look at the launching token and invest in it. To do this, you need to buy Binance’s native token, BNB, and then stake it in the launchpad.

Throughout the period, the platform calculates the number of subscribers participating in the launchpad and the amount of money invested. Then, they will come up with a token price and conduct what they call a lottery to determine the fair distribution of tokens to subscribers.

Benefits

Exposure

Launchpads provide exposure to a large network of users. This can help newer projects gain traction and attract people more quickly than if they were launched independently.

Support And Guidance

Crypto launchpads act as incubators by offering valuable support and guidance for teams unfamiliar with the crypto landscape.

Gaining Credibility

Launchpads are often known to back high-quality projects. Therefore, this can boost a crypto project’s credibility and user trust.

Reminders

One thing to be aware of if you are participating in a launchpad event is that you are taking risks because you are buying a new token. For the most part, an ICO is much like an initial public offering (IPO) of a stock, where the token is priced quite reasonably low in comparison to what the company believes it will trade for in the open market.

What many people do is try and flip the launchpad much like they try and flip IPOs where you are investing money into a discounted project and then flip the allocation out immediately once they receive the new tokens.

Binance Launchpool

The Binance Launchpool is another platform offered by the crypto exchange that allows users to earn new tokens by staking their existing crypto holdings.

It is important to note that the Binance Launchpool and Launchpad are both part of Binance’s token launch platform, but there are some differences in how they function:

Binance LaunchpadBinance Launchpool
Primarily focused on helping new projects raise funds through token sales.
Projects raise funds by selling tokens to the public.
Users purchase tokens using supported cryptocurrencies like BNB.
Projects go through a vetting process.
Provides fixed token sales.
Centered around offering token staking and yield farming opportunities to users, typically after the project’s token sale.
Users stake tokens for rewards or additional tokens.
Projects have completed token sales.
Users deposit specific tokens.
Offers incentives and rewards for participation.

Final Thoughts

Launchpads were created to detect and filter promising projects, creating secure connections and opportunities between investors and startups.

As the popularity of cryptocurrencies continues to increase, even experienced investors can have difficulty choosing which projects to invest in. Currently, there are more than 13,000 projects on the crypto market right now, and there is a good chance that you can be scammed if you do not know what you are doing.

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