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The best launchpads in 2022

The best launchpads in 2022

The crypto industry raised $2.6 billion in the first months of 2022 alone. Most of that amount originated from launchpads, using which investors can participate in token sales, namely, early purchases of various projects' digital assets.

Launchpad serves as a launching platform in the form of a website, where new cryptocurrency projects can raise capital for further market launch and development.

The main goals behind using launchpads:

  • Raising capital to launch a project from scratch or to implement specific improvements and modifications;
  • Creating communities for rapid interaction between investors and developers.

At the same time, the launchpads fulfill a number of important functions, making it easier for both developers of crypto-projects and investors to find profit-making opportunities. More specifically, launchpads verify the readiness level of a crypto project for funding, assess the competencies of all participants in the startup, and prevent some fraudulent schemes. 

Launchpads allow developers to attract investment via three well-known ways:

  • via ICO;
  • via IEO;
  • via IDO.

ICO is an initial coin offering that became popular in 2017 as a tool to raise capital for cryptocurrency startups.

The ICO concept is as follows:

  • A project that wants to place tokens issues and sells them to investors at a fixed price;
  • After the ICO, coins are already in the open market and are available on cryptocurrency exchanges, while the price is formed by the supply and demand ratio.

Before an ICO, a startup must have a White Paper (a document that fully describes the idea and stages of the project, its uniqueness, and usefulness to end-users). Although some projects can do without it, but in this case, the project's credibility is much less. The key advantage of ICO is its speed of attracting investment. However, today, it has lost its relevance due to its replacement by IEO.

IEO is an initial exchange offer, i.e., coin placement right on the cryptocurrency exchange. It is an improved and more secure version of ICO, offering various advantages:

  • Rigorous project selection for funding;
  • High flow of investors, hence the high investment volume;
  • Lottery mechanism, so that every investor has a chance to participate in the IEO;
  • Investors get access to promising assets during a crowd-sale (fundraising for a project during its development phase).

The IEO drawbacks include the need for projects to pay exchanges for listing services as well as a lack of rights to hold fundraising on other sites. Therefore, it was replaced by IDO. 

IDO is the initial offering of the project token through a decentralized cryptocurrency exchange. Companies get a tool to involve the community in economic processes so that they can make and implement effective business decisions in the future. The IDO advantages are that the funds for financing come from retail investors who subsequently do not own the capital in the project.

The IDO scheme has several key advantages:

  • The minimum cost for listing (listing of cryptocurrency in the list of exchange assets);
  • Rapid trading launch;
  • Instant liquidity;
  • Low fraud rate.

The drawbacks include the lack of clear rules. In fact, each decentralized exchange has its own requirements for the IDO procedure. This poses certain difficulties, especially for those who want to promote the project on several sites quickly. 

Advantages of using launchpads:

  • High security rate: every startup is thoroughly inspected, so there are almost no scams or frauds;
  • Technically simplified version of IDO holding since you can buy tokens once you register your account;
  • Future listing guarantee;
  • An easy and affordable investment option for investors;
  • Minimum restrictions for buying tokens;
  • Cost minimization, since most of the processes are implemented via smart contracts;
  • Transparent cooperation of both parties (developers and investors).

Drawbacks of launchpads:

  • It's hard to choose the best launchpad among a variety of platforms;
  • Different conditions and time to buy a token on the platform;
  • A large amount for guaranteed allocations (percentage of order fulfillment for the purchase of the asset).

The best launchpads in 2022

Binance Launchpad

It is a full-fledged ecosystem for launching crypto projects. It is supported by Binance, which has been providing advisory, financing and marketing services for token projects since 2017.

Binance Launchpad members need to have a BNB cryptocurrency and a compatible wallet for it. Token purchase process is carried out in stages:

  • Preparation;
  • Subscription;
  • User count.

Launch start: 2017

Launchpad type: centralized

Cryptocurrency for buying tokens: BNB

MEXC Launchpad

The platform is designed to attract investments for a token sale through the MEXC exchange. Users are only required to hold MX tokens, which will be used to make further purchases.

The launchpad works as follows:

  • A snapshot of the launch panel;
  • Subscription;
  • Token distribution;
  • Trading.

Launch start: 2018

Launchpad type: centralized

Cryptocurrency for buying tokens: MX

Polkastarter

This launchpad operates within the Polkadot ecosystem and has 200 thousand registered investors. Each participant needs to have 3,000 POLS in the cryptocurrency wallet in order to get access to actual token sales. With a smaller deposit amount, it is still allowed to buy tokens, but with fewer privileges. 

Launch start: 2020

Launchpad type: decentralized

Cryptocurrency for buying tokens: POLS

DuckStarter

This is one of the new launchpads launched by the decentralized DuckDAO system. Investors get access to exclusive and private transactions conducted in U.S. dollars. Participants are required to have a DDIM token, which is used to redeem cryptocurrencies, while most transactions are conducted in the U.S. dollar equivalent.

Launch start: 2021

Launchpad type: decentralized

Cryptocurrency for buying tokens: dollars, DDIM

TrustSwap

It is ranked among the best launchpads, and the site is focused on the cryptocurrency community. It is equipped with a unique Team Lock system, which protects against the risk of losing liquidity and fraud. The principle of blocking purchased tokens for a certain period of time has been implemented to prevent arbitrary sales. Participants are required to have at least 3,000 SWAPs in their account in order to conduct transactions, and public sales are conducted without financial restrictions.

Launch start: 2020

Launchpad type: decentralized

Cryptocurrency for buying tokens: SWAP           

AAX

The startup platform for attracting investments is supported by the AAX cryptocurrency exchange. The latter verifies all projects that are submitted for funding. Each investor needs to have 11,000 AAB in his or her account in order to participate in the token sale. Through the launchpad, the sales are held, and a list of projects is compiled, based on the indication of its implementation stage.

Launch start: 2021

Launchpad type: centralized

Cryptocurrency for buying tokens: AAB

ZENDIT

This launchpad is a development of the decentralized MANTRA DAO platform. It is based on a fixed swapping protocol, which ensures transparency of the token quantity and protects against fraud risks.

You must hold 888 OM or the equivalent of $800 worth of MANTRA DAO to participate in the token sale.

Launch start: 2021

Launchpad type: decentralized

Cryptocurrency for buying tokens: OM or MANTRA DAO

 

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