What is a Crypto Launchpad and how does it benefit the crypto ecosystem? By DailyCoin

The cryptocurrency industry is growing at an exponential rate globally, with around 1 billion people around the world expected to adopt cryptocurrency in 2022. What is even more interesting in the development of cryptocurrency is that over 10,000 are in circulation, but more than 12 000 has existed, which is an indication of the acceptance of cryptocurrency and its value in the eyes of avid investors.

The popularity of cryptocurrencies has paved the way for many important investor-friendly innovations, which facilitate an acceleration in cryptocurrency acceptance and adoption on a global scale. One such innovation that many crypto investors are attracted to is the cryptocurrency launch ramp.

Crypto-launch sites are slowly becoming the backbone of the decentralized financial ecosystem, offering small and large cryptocurrency projects, whether gaming, metaverse or Move-to-Earn apps, access to a pool of investors looking to find the next big thing. They attract investors and entrepreneurs of all kinds into new crypto projects that are worth their time and money. In this piece, let’s find out what crypto launch ramps mean and what benefit they can have for the crypto ecosystem. So, what exactly are crypto launch ramps?

What are Crypto Launchpads?

Crypto launchpads, also called crypto incubators, are special platforms that help blockchain-based projects gain momentum. These platforms act as fundraisers for any crypto project. They give a group of investors access to token sales that are at an early stage. This type of access ensures that investors can obtain offer prices on sales before they become publicly available.

Launching anything on a cryptocurrency startup platform involves buying tokens at low fees, which is a big plus for investors, which means low investment costs. As a result, many projects are approaching crypto-launch sites to raise the necessary funds.

The best crypto-launch fields also protect investors and get more capital by filtering out scams or rug-pulls, which are very common and difficult on other non-launch platforms, while a third party usually performs the Know Your Customer (KYC) process as part of new user confirmation.

In addition, early participants in successful crypto projects always have the most advantage because they stick to the project from scratch, thus reaping the fruits of their labor in the long run.

Types of Crypto Launchpads

1. Initial Dex Offering (IDO) Launchpads

Initial Dex Offering (or IDO) is a decentralized crowdfunding platform that is a relatively new way to raise money in the crypto industry. This type of fundraising is usually done by exchanging tokens representing various assets hosted on a decentralized exchange (DEX). IDOs are often executed when a project releases a currency or token through a decentralized liquidity exchange.

IDOs offer companies a tool to engage their communities in an economy that enriches both their products and services, while allowing them to make smart business decisions regarding their assets. Most IDO launch pads also have native tokens, which are sometimes the qualifications of users to participate in crowdfunding.

2. Initial NFT Offering (INO) Launchpads

The launch ramp Initial NFT Offering (INO) is a new crowdfunding mechanism for cryptocurrencies based on the same basic principles that involve offering a set of limited NFTs for sale.

NFTs are experiencing a massive adoption as many prominent musicians, artists, athletes and INOs have increased in popularity with the NFT hype, which benefits both content creators and investors. INO involves offering a set of NFTs on launch ramps or marketplaces for sale to public investors.

3. Initial Coin Offering (ICO) launch pads

Initial Coin Offerings (ICO) are an ingenious approach to raising money through the use of cryptocurrencies. Such a strategy is more prevalent in cryptocurrency projects that have not yet fully developed their blockchain-based product, service or platform. Funds collected at ICO events are normally received as (BTC) or Ether (ETH), but in some cases fiat currency can also be taken as payment.

Investors usually engage in Initial Coin Offerings with the hope and expectation that the digital token (or coin) and its corresponding company will succeed, possibly resulting in a good return on investment (ROI) for those seen as early supporters .

4. Initial Game Offering (IGO) Launchpads

Despite not being very popular, Initial Game Offerings Launchpads are platforms that host Initial Game Offerings (IGOs), game metavers, P2E projects, in-game tools and marketplaces for trading game / metaverse NFTs. They help developers raise crowdfunding for their projects and monetize their tokenized creations.

IGO Launchpads follow a layered structure for its allocations. The higher the number of token bets and duration you have, the higher your level, and the higher the priority status and chances of winning guaranteed awards. Some IGOs ​​include Game Starter, Engine Starter and PlayPad.

Crypto Launchpads and their benefits to the crypto ecosystem

Crypto launchpads have a couple of inherent benefits that they can offer to both investors and founders, which also affect the ecosystem within which they operate.

1. Crowd Fundraising

Every business reaches a certain point where they need to scale up, and fundraising is an important way to get to the next stage of development. This is no different for crypto projects. For founders or creators, launch pads are a new approach to raising funds that has never been possible before.

Crypto launchpads play a key role in providing significant financing that helps with venture development and business expansion. They also serve as the perfect platform for softly launching a cryptocurrency before it becomes available to crypto exchanges.

2. Early investment

Since investors enter a crypto project early, it allows participants to enter at the lowest possible price and benefit from maximum returns. The price of project tokens can skyrocket when it becomes public, so buying them early in the life cycle is definitely a super cute deal as a member of any crypto launch platform. This is clearly a major reason why investors are flocking to cryptocurrency launches.

3. Project security and token value

More than $ 1.6 billion in crypto has been stolen from users in 2022, surpassing the total amount stolen in 2020 and 2021 combined. This highlights a security risk that drives potential investors away from crypto projects. Launchpads help, however, because all the projects recruited in launchpads are all verified, providing a more secure ecosystem for entrepreneurs and investors.

Launchpads mean that investors do not have to worry about losing their money to scams or scams where start-up entrepreneurs take the investors’ money and disappear into thin air.

Also, apart from early access to projects, another reason to motivate investors to explore launch ramps is the possibility of increasing the value of the original token. When investors believe that a crypto project can be valued over the years, they are more likely to invest in it.

4. Community building

Launchpads help build community over time, creating a breeding ground for loyalty and indirect mouthpieces for crypto projects opened by entrepreneurs. As the crypto project continues to grow, it will gather more investors who are interested in participating in the project and buying tokens.

Project developers also have room to interact directly with their investors on a single platform. Meetings can sometimes be held to talk about recent updates in the project, allay fears and build more participation. Investors love to be involved in building something; after all, they have deposited the money.

Last thoughts

Crypto launch pads play a significant role as a bridge between investors and developers to develop a project. Startups need access to good financing for the next phase of project development, while investors have access to some sweet early phase agreements. These launch pads basically allow many projects to be created frequently, and most of them rely on a decentralized world to generate revenue for their projects.

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