Since the launch of Bitcoin, the global financial ecosystem has experienced an explosion in the creation of cryptocurrencies. This is due to different business possibilities associated with various crypto projects. The growing crypto adoption drives an advancement that sees the creation of innovative products that solve real-life problems.
As such, investors seek means to engage in the crypto ecosystem without losing their money. One investment option they use is decentralized finance (DeFi). And another option is the crypto launchpads. The increased crypto adoption and extensive creation of crypto projects expose investors to various crypto scams.
But the existence of crypto launchpads helps reduce investors’ risk exposure and guarantees them early access to invest in crypto projects. Crypto launchpads are becoming the haven for startup founders to obtain funding for their small or large crypto projects. These platforms bring more investors into the space and make funding possible for developers or founders.
Key Takeaways
- Crypto launchpads are innovative decentralized platforms that make it easy for crypto founders to obtain funding for their crypto projects, either at launch or at the next stage of development.
- Investors have access to early investment possibilities at the lowest prices when they participate in the early token sales of a crypto project.
- Crypto launchpad is a great investment tool that brings more revenues to the investors as soon as the projects appreciate after going public.
What is a Crypto Launchpad?
You can refer to crypto launchpads as crypto incubators where you find innovative blockchain-based and crypto projects that have just launched. These platforms make it possible for crypto investors to become early adopters of a successful crypto project. Crypto launchpads are platforms that expose crypto projects to direct funding due to investors’ participation in early token sales at a reduced price.
What makes a crypto launchpad amazing for founders, developers, and investors is the little to no cost of using the platform. As a result, many companies are leveraging the channel to fund their crypto projects. An investor must undergo the Know-Your-Customer (KYC) verification process before using the platform. Likewise, projects undergo rigorous scrutiny before being accepted on the platform.
The scrutiny eliminates scam projects or projects that might rug-pull later from the platform. As such, there is security for investors to protect their funds. The investment costs on launchpads are low because token sales for the crypto project occur at low prices. Thus, you can regard crypto launchpads as fundraising platforms for crypto projects.
Going forward, investors will have access to token prices that are more affordable than what others will get later or when the projects are made public. Investment options for making more profits from crypto launchpads become a possibility. Genuine crypto launchpads have an efficiently transparent and secure infrastructure. And they expose founders to communities of crypto enthusiasts and investors who will key into the growth of their crypto projects.
Why Launchpad is an Important Crypto Investment Tool
Now that you know what crypto launchpads are, let’s examine why they are a great deal in crypto. We will look into how they serve founders and investors, and significantly impact the crypto ecosystem. The section discusses seven (7) reasons launchpad became a critical crypto investment tool.
1. Little or No Enlistment Costs
Sometimes, it takes a certain amount of funds or membership to list your projects on platforms that will expose them to potential investors. It is a limiting factor for startup founders while they grow the company and work on projects. Likewise, it can enhance the efficiency of project optimization because funds are essential.
But crypto launchpads are rewriting the story as founders now take the crypto-enabled initiative to raise funds for their crypto projects. You can list your projects on crypto launchpads at no cost or little cost; anyone can pay. However, your crypto project must pass the verification process and meet every requirement on the platform before enlistment.
2. Access to a Global Investor Ecosystem
Sometimes, access to attracting international investors with a genuine interest in your crypto projects might be restricted. This might be due to payment barriers or international laws. But crypto launchpads now make that easy. You attract investors from various parts of the world when you list your crypto projects on launchpads.
Launchpads are a decentralized ecosystem—built on blockchain technology—that helps to eliminate international payment barriers. Crypto investors only need to be launchpad members, and they will have access to participate in token sales.
3. Funds and Project Security
Potential investors have been discouraged from engaging in crypto projects. That is because there is an alarming rate of scams in the crypto ecosystem. One of them is rug-pull scams wherein investors’ money vanishes because startup founders disappear. As a result, investors are more conscious of security from crypto investment platforms.
On launchpads, every enlisted crypto project undergoes a thorough verification process. The process ensures that the project is legit and investors receive financial protection. With the verification process, founders and investors are safe.
Likewise, it is noteworthy that launchpads do not hold your funds as an investor. Instead, you are in total control of your digital assets. Launchpads can only access your tokens when you permit them by linking them to your crypto wallets.
4. Early Stage Investment
One crucial reason every investor wants to put their money into a project is to make more returns. Crypto launchpads give investors more flexibility in this regard. That is because investors participate in crypto project funding at an early phase. As a result, they are making investment entries at a meager price.
In turn, they buy tokens at affordable prices lower than the price when the project is public. And this is a fantastic deal for every investor. It is a crucial reason crypto investors are always looking for crypto launchpads.
5. Project Crowdfunding
Business scalability or development must occur at some point in every business phase to bring efficiency to business operations. In turn, it makes the business successful. During this phase, access to funds is key to achieving the next developmental stage.
While funding might be difficult, crypto launchpads became an innovative alternative for founders to raise funds for their ventures. As a result, crypto projects will further into development and expansion, thereby enabling project success. Likewise, you can use crypto launchpads to launch a new crypto before listing it on crypto exchanges.
6. Token Appreciation and Profitability
Another primary reason why crypto investors use crypto launchpads is to maximize the profits they can benefit from having early access to affordable tokens. The early access gives them the advantage of making more profits when the projects launch and the token price increases. Investors bank on this possibility and use it as a determinant to put their money into enlisted crypto projects on crypto launchpads.
7. Community Building
In the history of cryptocurrency, the community has been the backbone of project sustainability. The community gives an aura of assurance to potential investors or individuals looking to engage in the project but wanting to be sure that they are investing in the right project. With a crypto community, you build loyalty for your project.
Launchpads have been an effective tool for founders to build a trustworthy community over time. It has also increased the rate of word-of-mouth marketing for crypto projects. This resulted from the enthusiasm investors display as acts of participation in project growth after token purchase.
Likewise, launchpads give founders of crypto projects direct access to possible funding. Thus, they can directly communicate the latest developments, discuss the projects' fears and nurture active participation from the investors.
Should You Use Launchpad as a Crypto Investor?
Crypto launchpads are the connecting link between crypto founders and investors. They expose crypto startups to a pool of investors willing to support crypto projects with their funds. On the other hand, launchpads bring amazing investment deals to investors. This is because they are investing in crypto projects or startups in their early stage before going public.
That said, crypto launchpads can be your next best stop if you want to make more profits in crypto investments. For developers or founders, it is their best bet to obtain sustainable funds to initiate their projects’ next developmental stage. The existence of launchpads has caused increased crypto project creation. Thus, conducting thorough research is advised before making an investment decision.