Raising capital through launchpad crypto
Thinking about selling your project’s tokens via launchpad? You’ve come to the right address. We specialize in advising early stage crypto projects and offer many services related to blockchain and cryptocurrencies. With our help you will get on the launchpad of your choice, launch Initial DEX Offering (IDO) and Initial Exchange Offering (IEO).
What is launchpad crypto?
Launchpad crypto is a platform that provides projects with tools to sell their tokens. Most launchpads use the Binance Smart Chain network, while many also implement Ethereum or Polygon blockchains. Launchpad can list any token, including those using a blockchain network not supported by it. The technological aspect mainly matters in terms of the project’s acceptance of funds in the form of tokens or stablecoins running on a given network.
Launchpads bring together a community of investors. These people use their chosen platform because it gives them the opportunity to invest in early-stage projects. Tokens acquired through a launchpad are most often not yet issued. Only after the so-called TGE (Token Generation Event) do the tokens make their way into investors’ portfolios. They can then trade them using the exchange of the project’s choice.
Launchpad vs Initial Exchange Offering
If a project has already secured a listing on an exchange, and its tokens have not yet been subject to the secondary market, an intermediate stage for them may be to enter a launchpad associated with an exchange. Examples of such a platform include Binance Launchpad or Huobi Prime. The IEO path is mainly chosen by cryptocurrency projects that have already raised funding from other sources.
Crypto launchpads – why is it worth it?
Investing in early-stage cryptocurrency projects is an opportunity for investors to earn high returns. Launchpads give investors access to cryptocurrency projects even before they are listed on exchanges, which means that token prices are much lower than on the secondary market. As a result, if the project is successful, investors can earn a lot from selling the project’s tokens.
For the project, on the other hand, launchpad is an opportunity to raise capital and gather a community of investors around it. Without the prior sale of tokens through launchpad, it’s hard to think about launching them on the market. Therefore, every crypto project should think about using at least one such platform.
Which crypto launchpad to choose?
When choosing the right launchpad for your project, there are several key factors to consider. These include, first and foremost, the size and involvement of the community, efficiency in fundraising and the platform’s ties to crypto funds. Additionally, the level of technological sophistication, additional services provided by the launchpad and the cost of cooperation that the project will have to face are also important.
Platform community
The launchpad’s gathering of a sufficiently large and active community is crucial, both from the point of view of the project planning to sell its tokens and the investors themselves. The quality of the community operating at the platform is best demonstrated by its social media – Twitter, Telegram or Discord.
The final test that each launchpad passes is the results of the tokens listed on the platform. Success for a project occurs if it has managed to find buyers for all the tokens to be sold. For investors, on the other hand, the behavior of the token price after listing on the exchange is decisive. If a launchpad regularly records satisfactory results on both fields, it is worth considering listing the project’s tokens on such a platform.
How to get to the launchpad?
Going to a launchpad is one of the final stages of project development. Before contacting the chosen launchpad, you should prepare a pitch deck, including elements such as the problem the project solves, its competitors, the token economy or the team. Listing tokens on the platform is often a tied deal – it is worth preparing for the need to pay for additional services offered by the launchpad.
A common problem encountered by cryptocurrency projects is the mere contact with decision-makers. In times of a bull market, launchpads experience a real siege receiving dozens of applications a day. On the other hand, when the market is not favorable, most platforms are reluctant to accept incoming applications. In both cases, it is crucial to have recommendations from people affiliated in some way with the platform.
What do launchpads pay attention to?
Making contact with the launchpad is only the first step, although sometimes the most difficult to complete. In order for the project’s tokens to eventually find their way onto the platform, as a rule, a few basic conditions must be met.
The first question raised by decision-makers is usually about past investments. What matters is not only the value of the funds raised, but also which specific VC funds have decided to acquire the project’s tokens. Hearing the names of known entities is an important part of project verification for them.
Another issue that is sure to be raised is the product question. Launchpads are reluctant to accept projects that do not yet have a finished product. The absolute minimum is Proof-of-Concept, while the standard is to have an MVP version of the product.
Should cryptocurrency projects use launchpads?
Due to the barriers to entry indicated above, launchpads should not be considered the main vehicle for raising capital. Funds should be raised first from individual investors and angel investors, followed by VC funds.
Rather, Launchpad should be seen as a kind of icing on the cake, the final piece of the puzzle before the token listing. However, the project’s abandonment of this stage of token sales is a hard mistake to correct. Convincing the community of selected launchpads is crucial to building its own community. In turn, the project’s tokens without a community centered around them will not succeed on the secondary market.
