Crypto Launchpads: How to Buy New Crypto Before Listing

CoinW Exchange
4 min readJan 31, 2024
Photo by Traxer on Unsplash

Crypto launchpads are platforms designed to facilitate and support the launch of new cryptocurrency projects, particularly during their initial coin offering (ICO) or token sale phases. These platforms act as launch vehicles for emerging blockchain-based projects, helping them raise funds, gain exposure, and establish a community of supporters, hence the term “launchpad.”

Launchpads can be a highly rewarding investment platform, but can also be high-risk as well. Let’s dive into the details to understand how they work, the pros and cons, and how to choose a good crypto launchpad.

Why Crypto Launchpads Are Popular

The popularity of crypto launchpads with investors boils down to the fact that the early bird gets the worm. Launchpads offer investors the chance to get involved in promising new projects at their very inception, enabling them to buy new crypto tokens before listing. This means buying tokens at a still-low price before they hit the open market, potentially leading to significant gains if the project succeeds.

For example, the Blocktopia metaverse project achieved a remarkable 558x ROI when it was launched on Seedify.fund, turning a $100 investment into over $55,000. My Neighbor Alice, the blockchain game, reaped a 298x ROI when it was launched on DAO Maker.

This sort of advantage had never existed previously for the average investor. Launchpads provide a platform for them to access exclusive investment opportunities traditionally reserved for venture capitalists and early adopters. This democratizes access to potentially lucrative deals and levels the playing field for everybody.

How Crypto Launchpads Work

Here’s a quick overview of how crypto launchpads work:

  1. Project evaluation: Launchpads typically conduct due diligence on potential projects before accepting them onto their platform. This evaluation process may include scrutinizing the project’s whitepaper, team credentials, technology, and overall viability.
  2. Fundraising platform: Once a project is approved, the launchpad provides a platform for the project to raise funds through token sales. Investors can participate by purchasing tokens using the native cryptocurrency of the launchpad or other accepted cryptocurrencies.
  3. Token allocation: The launchpad determines the token allocation and distribution mechanics, including the initial token price, the total supply, and any vesting schedules for team members and early investors.
  4. Community building: Launchpads often assist in building and engaging a community around the project. This community support can be crucial for the success of the project, as it helps generate interest, feedback, and word-of-mouth promotion.
  5. Listing on exchanges: Successful projects that launch on a crypto launchpad often aim to get their tokens listed on major cryptocurrency exchanges. This increases liquidity and exposure, making the tokens accessible to a broader audience.
  6. Governance and incentives: Launchpads may incorporate governance mechanisms, allowing token holders to participate in decision-making processes related to the project’s development. Additionally, they might provide incentives for users to stake or hold tokens, fostering long-term engagement.

Pros and Cons of Crypto Launchpads

Pros:

  • Early access: Be the first to grab hot new tokens before they hit the mainstream.
  • High potential returns: If the project takes off, your early investment could soar.

Cons:

  • High risk: New projects are effectively startups; your investment could go “poof!”
  • Competition can be fierce: Popular projects might have limited token allocations, making it tough to get in.
  • Technical hurdles: Some launchpads require specific tokens or complicated steps, which can be daunting for newbies.

How to Choose Good Crypto Launchpads

Popular decentralized crypto launchpads include platforms like Polkastarter, Seedify.Fund and TrustPad, but for beginners, reputable centralized exchanges like CoinW may offer a more suitable starting point.

These centralized exchanges carefully vet and screen projects before hosting them, offering investors a layer of protection against scams and poorly conceived ventures. This reduces risk compared to investing in unknown projects on open, decentralized exchanges where literally anyone can launch a token.

(Having said that, it’s still essential for investors to conduct their own research and due diligence before participating in any token sale or investment opportunity.)

Look for platforms with a strong track record of hosting successful and legitimate projects. Avoid launchpads with a history of scams or questionable ventures.

Two more tips on choosing a crypto launchpad:

  • Token sale terms and fees: Compare the token sale terms offered by different launchpads, including vesting schedules, lock-up periods, and associated fees.
  • User interface and accessibility: Choose a platform with a user-friendly interface and clear instructions for participating in token sales.

Before you jump in, remember two golden rules:

  • Do your research: Don’t blindly invest in anything new. Research the project, its team, and the launchpad itself.
  • Invest responsibly: Only invest what you can afford to lose. In fact, start with smaller amounts to limit risk.

Remember, launchpads are exciting with high potential for rewards, but always be prepared for the unexpected. Investing in any crypto project, even through a launchpad, carries inherent risks. Conducting thorough research, understanding the project’s fundamentals, and practicing responsible risk management are crucial before investing.

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