Crypto Launchpad, an incredible tool to invest in (1/2)
Increasingly popular within the cryptosphere, the crypto launchpad is a unique tool to support new innovative projects: dApps, video games, metaverse, NFT...etc.
Whether it is an independent, decentralized platform, parallel to another blockchain [...] its a really diverse univers.
A Crypto Launchpad initially lists projects so that investors can subsequently become interested and invest using tokens.
In principle, the price of the initially released tokens corresponds to a launch price.
This is sometimes what attracts people who want to make a profit.
Polkastarter, BitTorrent, Coinlist, Trustswap ... and soon Galeon, the list is long and growing.
So what is the real use of these platforms from the point of view of investors and projects themselves?
How does a Crypto Launchpad work in practice and are there different angles of approach?
Finally, what are the known strategies and recommendations to follow?
This is what we will see in this new article dedicated to the Crypto Launchpad.
PART 1 - Definition of a Crypto Launchpad
With DeFI (Decentralized Finance), it is now much easier to fund crypto projects.
Everything becomes accessible from your laptop, phone or tablet.
Projects are at your fingertips and you just have to invest according to your beliefs, your strategy...etc.
- Do I want to support a project that can make me money?
- To allow a Good for Humanity idea (Impact Project) to change things?
Whatever the case, there is no shortage of ideas.
All the fields of our current life are likely to evolve: culture and art with NFT, finance with DeFi, dApps, health... etc
As you can see, to support these projects, it is possible to use a Crypto Launchpad.
This concept allows to gather innovations and investors.
The latter buy tokens and inject them directly on the platform according to the conditions provided (e.g.: staking with a minimum for the 30 days locking period).
One could associate this system to that of the stock exchange where the investor receives assets and becomes a shareholder of the company.
However, on a Launchpad, the contributor does not necessarily have a guaranteed place. This is called the lottery and whitelist system). It all depends on the allocation conditions of the project.
Also, he can potentially receive interest or not, get fixed rewards or not...etc. The possibilities are various.
The interest in all this?
PART 2 - The advantages of a Crypto Launchpad
As far as the project that is trying to be built is concerned, you will have understood that it is a way to obtain financing, to create capital (a bit like crowdfunding).
But that's not all, it also allows you to build a real community and above all, to make it alive. And the same project can be present on several launchpads.
Don't forget that the contributors have invested in the project. They expect it to take off. Developing a strong marketing strategy is therefore essential.
Funding, marketing and community, it is certain that depending on the Crypto Launchpad on which the project is placed, it will give it more or less visibility.
On the investors' side, a Crypto Launchpad allows, first of all, to realize a capital gain on the starting price of the token.
Indeed, at the time of its launch, the company can lower the acquisition price of the tokens in principle.
The Launchpad is also a way to sort out the projects that are not very good and those that have a real potential. But also to save time rather than having to compare the prices of each token, the minimum to invest or the differences existing according to this or that Launchpad.
⚠️ Of course, we always advise you to make your own opinion before investing, even if a platform lists some projects.
Buy your first crypto easily in euro with Galeon
PART 3 - How a Crypto Launchpad works
A Crypto Launchpad can take different forms.
The structure: it can be an independent project or on a blockchain (e.g. Coinlist for Solana, Red Kite by PolkaFoundry, Ignition for PAID).
⚠️ Some are completely decentralized, allowing then any project to be able to present itself on their platform, with risks of scam for contributors.
Now, beyond the structure, a Crypto Launchpad can work in several ways:
- According to the lottery system with a whitelist. In this case, your place is not guaranteed,
or on the contrary, your place in the project is guaranteed. Some precisions however, whether it is on this or that platform, the entry conditions depend on those initially set. For example, the need to "lock up" tokens within a certain period of time.
- Also, the reward system can be fixed, variable, or depend on your place as an investor. Some platforms, for example, operate on a "first come, first served" basis.
Finally, you should know that in the case of a whitelist, it is necessary that the investor goes through a KYC (know your customer) procedure. The latter will have to transmit his personal information so that they can be authenticated.
PART 4 - Strategy and Recommendations
Assess the risks
This is never enough to tell you this: always assess the risks.
Scams are present on all fronts, including on this type of platform.
Just because a launchpad lists a particular project does not mean that it is safe.
Be careful with decentralized launchpads that allow anyone to register their project.
Get to know the project, its reputation, the marketing strategy, the team around it and the technologies used.
What strategy to adopt?
There is not only one strategy and it depends on your intentions and expectations.
You may want to take risks in order to earn more. So you may want to bet on projects that may be less well known, but that promise more rewards.
On the other hand, you may prefer to bet on trusted platforms with projects that are known, or at least starting to make a name for themselves.
Even though you can never be sure, you feel that they are well on their way to becoming reality.
Investors also know that in principle, the prices of tokens at the beginning of projects are somehow discounted so that companies can build their capital.
So the challenge is to get in early and resell when the tokens have appreciated in value to realize a capital gain.
🔍 Note that the more people who position themselves on a launchpad project, the lower the rewards will be.
Another important detail, don't hesitate to take note of the number of tokens in circulation as well as the market cap. Indeed, this can alter the price and increase the price.
For example, if the total number of released tokens is almost reached, but the demand remains the same, globally, the price will also remain the same. The implication is that if demand increases, the price will increase with it.
Another example, if half of the tokens are outstanding, it is possible that depending on the demand, this will put pressure on the price.
You have everything you need to understand how a Crypto Launchpad works.
We will come back to promising Launchpad projects later.
Of course, we'll be talking about the Galeon Launchpad.
In the meantime, feel free to submit your Good for humanity project on the platform.
The aim of this article is above all to simplify technical concepts related to crypto-currency, in order to make them accessible to everyone. These words engage only their author. It is not intended to advise the reader on his investments.
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