Crypto Launchpads
A crypto launchpad (also called a token launch platform or IDO launchpad) is a platform that helps new cryptocurrency projects raise funds and launch their tokens.
Think of it as a crowdfunding platform specifically built for blockchain projects—but with tools for security, marketing, and investor access.
Instead of projects trying to sell their tokens on their own websites (as in ICOs), launchpads connect projects directly with interested investors in a more structured and often safer environment.
Why Launchpads Exist
In the early days of crypto, many Initial Coin Offerings (ICOs) were plagued by scams and failures. Investors had little protection, and new projects struggled to gain trust.
Launchpads solve this by:
- Vetting projects before listing them.
- Handling technical details like token smart contracts and liquidity.
- Giving investors early access to vetted projects.
- Helping projects gain exposure through the launchpad’s community.
How Crypto Launchpads Work
The process varies slightly depending on the platform, but generally follows these steps:
1. Project Application & Screening
- New projects apply to be listed on the launchpad.
- The launchpad team reviews the project’s whitepaper, tokenomics, team background, and security measures.
- Some launchpads reject low-quality or high-risk projects to protect their community.
2. Token Allocation & Sale Preparation
- The project sets a token price, total supply, and percentage available for sale.
- A sale date and participation rules are announced.
3. Investor Participation
- Most launchpads require investors to hold the launchpad’s native token (e.g., BNB for Binance Launchpad, POLS for Polkastarter).
- Some use a lottery system or tiered levels—the more native tokens you hold, the better your chances of getting an allocation.
- Investors commit funds (in ETH, BNB, USDC, etc.) during the sale window.
4. Token Distribution & Trading
- Once the sale ends, tokens are distributed to investors.
- The token is listed on a Decentralized Exchange (DEX) or Centralized Exchange (CEX), making it tradable.
Types of Launchpads
-
Centralized Launchpads
- Run by major exchanges (e.g., Binance Launchpad, KuCoin Spotlight).
- Require KYC (Know Your Customer) verification.
- Often have stricter vetting and more investor protection.
-
Decentralized Launchpads
- Run on blockchain networks (e.g., Polkastarter, DAO Maker, BSCPad).
- No central authority; transactions happen via smart contracts.
- Usually more open but riskier due to less regulation.
Advantages of Crypto Launchpads
-
For Projects:
- Access to a ready community of crypto investors.
- Marketing and credibility boost.
- Technical support for token launch.
-
For Investors:
- Early access to tokens before public trading.
- Lower initial prices compared to post-listing market prices.
- Security from scam prevention measures (though not 100% guaranteed).
Risks & Considerations
- Not Risk-Free – Even vetted projects can fail or lose value.
- Token Volatility – Prices can spike and crash quickly after launch.
- Fake Launchpads – Scammers sometimes create fake launchpad websites to steal funds.
- Lock-Up Periods – Some launchpads lock investor tokens for weeks or months before they can sell.
Popular Crypto Launchpads
Launchpad Type Blockchain Notable Projects Binance Launchpad Centralized Binance Smart Chain Axie Infinity, StepN Polkastarter Decentralized Ethereum, BSC, Polkadot SuperFarm, Wilder World DAO Maker Decentralized Ethereum, BSC My Neighbor Alice, Orion Protocol BSCPad Decentralized Binance Smart Chain GameZone, TronPad
Final Takeaway
Crypto launchpads are like launch ramps for new blockchain projects, giving them momentum to reach the market and giving investors a chance to get in early.
They are not a guarantee of profit, but a tool that—when combined with research and caution—can offer exciting opportunities in the crypto world.