In this article, I will elaborate on crypto launchpads and their importance with regards to fundraising, which serves as an example to showcase how blockchain startups can efficiently acquire capital in early stages.
Crypto launchpads offer investor relations, marketing, and token sale facilitation. If you’re deploying a DeFi app or an NFT project, knowing how to get the most out of these platforms will greatly improve your chances during the fundraising process.
What Are Crypto Launchpads
Crypto launchpads help blockchain startups raise capital by pre-selling their tokens to early investors before a public offering. IDO (Initial DEX Offering) platforms are also called launchpads since they allow projects to obtain funding, visibility, and a community in a secure and efficient manner.
They evaluate project’s quality and legitimacy and protect investors against fraud. There is enhanced engagement of the crypto audience and tools for facilitating easier startup access on launchpads.
These platforms can either be centralized or decentralized, and each has unique advantages depending on the project’s objectives and compatibility with the blockchain.
How To Raise Funds Via Crypto Launchpads
Construct a Strong Project Foundation
- Compile an accurate whitepaper, roadmap, and tokenomics.
- Gather a reputable team and state the utilities of your project.
Attend to Legal Requirements
- Get the necessary compliance for your crypto project in your area.
- Get legal advice on KYC/AML and token defining.
Get A Suitable Launchpad
- Research the blockchain network, the fees to be paid, the target audience and reach.
- Success rate should also be considered.
Make An Application To The Launchpad
- Provide the project beta and include the whitepaper and tokenomics.
- Undergo the evaluation and approval stage.
Create And Audit Your Token
- Select your preferred standard; ERC-20 or BEP-20.
- Complete a smart contract audit.
Construct Deep Community Engagement
- Increase followers on every platform including Discord, Twitter, and Telegram.
- Participate in AMAs and keep giving updates to the prospective investors.
Advertise Your IGO/IDO/IEO
- You and the launchpad are supposed to advertise the fundraising event.
- Work with Advertisers, PR executives, and crypto media for wide access.
Start The Token Sale
- Let the sale proceedings go through the launchpad.
- Adhere to policies of the crypto project like whitelisting, vesting and allocation of rewards.
Actions After Launching Project
- Make your token available on both decentralized and centralized exchanges.
- Ensure the community is aware of everything that is happening and meet predefined goals.
Types of launchpads
1. Centralized Launchpads (CEX-Based)
- They are most typically associated with centralized exchanges (CEXs) such as Binance, KuCoin and OKX.
- Provide a powerful user base and a well-regulated environment to operate in.
- Most of them are known to have strict KYC/AML regulations.
- And there are numerous others, such as: Binance Launchpad, Huobi Prime, OKX Jumpstart.
2. Decentralized Launchpads (DEX-Based)
- They move on the basis of decentralized exchanges (DEXs) or smart contracts.
- Provide greater freedom control of the project with lower entry barriers.
- Generally, it is important that investors have a crypto wallet and staked tokens.
- And others include: Polkastarter, TrustSwap, DAO Maker.
Why Choose a Launchpad for Fundraising?
Access to Early-Stage Investors
Through launchpads, investors are exposed to dozens of crypto investment projects awaiting seed funding from blockchain enthusiasts.
Built-In Credibility and Trust
Getting put on a Launchpad adds legitimacy because most platforms carve proper project vetting and due diligence.
Optimized Filling of Funds
Ready-made token creation, distribution, and sale mechanisms ensure no technical, time, or effort hurdles stand in the way.
Advertising and Activity Boost
Prime launchpads actively advertise their projects, increasing exposure while saving project funds.
Community Development
Beyond aiding in marketing, these launchpads assist projects to form active communities early on which is crucial for the project’s success.
No Need For Stringent Non-Traditional Venture Capital Funding Requirements
Greater ease and leniency compared to traditional pitch rounds with equity shredding enables funding through blockchain.
Conclusion
Final thoughts. Startups now have an easier funding option that is driven by the community with the use of crypto launchpads. There is careful choice of platform, legal work and prep; projects can create early momentum and acquire funding.
Vertical blockchain businesses wanting to rapidly expand in the current crypto market can leverage the power of launchpads which offer great funding, brand trust, and vital launch resources like marketing aid.
