In the world of cryptocurrency, launchpads are becoming increasingly popular. They address a unique challenge for both crypto-investors and developers and have gained a lot of popularity as a result of the benefits they provide.Â
Although the launchpad phenomenon is increasingly typical among cryptocurrency experts, the majority of people have no idea how launchpads work and their intended uses.
What is a Crypto Launchpad? How do they Work?
Launchpads are incubation platforms that enable blockchain projects to raise capital via crowdfunding. These platforms also enable users to buy into crowdfunded projects at a low price due to being early investors.
Projects can use launchpads to raise funds through different methods including:
Initial Exchange Offerings (IEOs)
Token sales are conducted through centralized exchanges, users usually deposit a certain amount of tokens (USDT or ETH for example) and then get the crowdfunded projects tokens in return.
Initial Dex Offerings (IDOs)
Like IEOs but done through a decentralized exchange (DEX), users usually stake the platform’s native token for a certain period to gain an allocation or receive the project’s tokens in return.
Initial Game Offerings (IGOs)
This system is similar to IDOs, instead, users usually receive in-game NFT items in return for investing in an incubated project.
In this post, we’ll be looking at five promising launchpads to look out for.
Bybit
Bybit Launchpad is a crowdfunding platform that gives investors early access to new and pre-listed tokens from blockchain-based projects. Users must stake the platform’s native token BIT towards each project to participate in a crowdfunding round.
Launchpad project on the platform goes through four steps:Â
- Snapshot – During this time, hourly snapshots will automatically record the daily average amount of BIT in a user’s Spot…
