What is a crypto startup platform and how does it work?

by Arthur · February 19, 2023

In the world of cryptocurrency, joining projects early can be advantageous. For example, investors who bought Bitcoin (BTC) in 2011 are now reaping the benefits of their investment. They discovered something new, saw the potential and stuck with it.

With cryptocurrency’s growing worldwide use comes a new fundraising platform: the crypto launchpad. Launchpads allow crypto investors to discover and invest in early-stage crypto projects before they go public. As a result, they can buy tokens for cheap and earn more when their value increases.

In recent years, crypto has seen a significant rise in popularity despite market volatility that saw Bitcoin fall from $60,000 to around $35,000, Ether (ETH) crash 40% and Dogecoin (DOGE) fall 45%. The push for regulation has also been stepped up, with the Biden administration taking steps to regulate cryptocurrency.

Despite these events, interest in cryptocurrency remains at an all-time high. Investors and the general public are looking for the next big thing, and crypto launchpads can provide the ideal platform.

Launchpads allow crypto project founders to build awareness and generate capital for their businesses at a small cost. Furthermore, launchpads offer investors and founders a secure platform to discover and connect with each other.

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What is a crypto startup platform?

A crypto launch platform, sometimes called a crypto incubator, is a decentralized exchange (DEX)-based platform where crypto projects are introduced and can raise funding. Before going public, early-stage crypto token sales are made available to the project’s crypto investors.

Investors see this as a great chance to profit from a future price increase by buying tokens at low prices and selling them at a profit later. Because the costs of launch are so minimal, the platform can also draw in more crypto projects for funding.

New founders can also benefit from the platform, as they will have easier access to the pool of cryptocurrency investors and fans waiting for the next exciting venture.

In 2021, at the peak of the bull market, many new coins and projects were launched, with investors pouring money into them. However, some were scams, and many lost money as they did not have the right expertise or time to screen the projects.

In contrast, trusted crypto launchpads perform due diligence on behalf of users and investors, which is another reason for their growing popularity. New projects undergo a rigorous screening process, with a third party enlisted to perform Know Your Customer (KYC) verification on new users, helping to protect both founders and investors.

How does a crypto startup platform work?

Crypto launchpad platforms exist to connect cryptocurrency projects and interested communities. Launchpads help entrepreneurs raise money from potential users and investors and give investors a chance to maximize their return on investment.

Transparency and security are two key features that attract investors. Users creating a new account will usually be subjected to a KYC process to verify their identity. This procedure also makes it more difficult for someone to manipulate the system by conducting transactions using multiple aliases.

Each crypto startup field will have its own set of hand-picked cryptocurrency projects and their current status. Interested investors should be able to access important information about these projects, such as price and start date. Investors will also be able to purchase specific tokens when their sale starts.

Token sales on crypto launch sites are similar to blockchains in that they provide transparency and make it easy to track the distribution method of each token. This enables retail investors to invest in early stage tokens. It further encourages an even distribution of tokens among investors and discourages pump-and-dump tactics.

What are the benefits of crypto launchpads?

Launchpads are beneficial for bringing cryptocurrency projects and investors together. Among the other benefits are the following:

Low Fees: Some launch boards only charge a nominal fee, while others charge nothing for listings. Some launch pads make it quick and easy to start a project by lowering the barriers to entry.
Security: Launchpads assesses both users and projects thoroughly, and takes care of everyone involved. A breach is also unlikely to occur because investors have absolute ownership of their assets, and launchpads do not store user funds.
No waiting period: Tokens are available immediately after purchase without needing a processing period.

How to use crypto launch pad

The following are some general steps; however, they may vary slightly depending on the cryptostart field they use:

Types of Crypto Launchpads

Initial Plates for DEX Offerings (IDO).

IDO launchpads are decentralized platforms for crowdfunding. Tokens representing assets hosted on a DEX are traded here. Some famous IDO launchers are FireStarter, BSCPad, GameFi, Seedify and TrustPad.

Starter plates for NFT offers (INO).

INO launchpads allow investors to fund projects where a collection, or collections, of non-fungible tokens (NFTs) are offered for sale on the platform. A few INO launchpads are Only1, BSCStation and Seedify.

Initial coin offerings (ICOs).

ICO launch plates allow founders to raise funds to complete the development of their blockchain projects by offering tokens to investors. Investors will put money into promising projects, hoping for a significant return. Well-known ICO launchpads include CardStarter, Binance Launchpad and Polkastarter.

Initial Game Offer (IGO) starter plates.

IGO launchpads are platforms where game and metaverse developers can get funding for their projects. These launchpads host IGOs, game-to-earn projects, game tools, and related NFTs. Some examples of IGO launchpads are Gamestarter, Enjinstarter and PlayPad.

Characteristics of a good crypto launch pad

Before investing in or launching a cryptocurrency project, it is important to do some research on the right launch site.

For investors

For investors who want assurance that these projects are safe, profitable and will earn a good return on investment, it is important to check the launch pad’s commitment to safety. The platform should follow strict security protocols, use KYC checks and take other steps to protect personal information.

The minimum bet amount and benefits associated with each launch pad will vary, so careful analysis is required before making your decision.

For entrepreneurs

Founders interested in launching their project through a crypto launchpad should consider how well the platform promotes related projects and whether the community is supportive or not. In addition, it is important to check the project assessment process, the criteria and how fair and realistic the conditions of the launch pad are.

A supportive community can be very beneficial as other members can help promote projects to users and potential backers.

The Future of Crypto Launchpads

Crypto launchpads are new platforms designed to help facilitate the funding of crypto projects. They aim to alleviate growing mistrust surrounding cryptocurrencies and boost investor confidence.

By rejecting scammers and promoting legitimate crypto projects, launchpads help improve the market and give investors a sense of security, which benefits investors and entrepreneurs. For investors, it helps reduce risk while giving founders additional opportunities to market their projects.

As a bonus, regular investors can now access investments previously reserved for institutional investors and venture capitalists. The development of crypto-launchpads should make investing in cryptocurrency easier and safer. And with more investors, it is hoped that the cryptocurrency industry will continue to grow.