As the DeFI Space heads towards a remarkable recovery in 2023 and the number of DeFI Projects keeps on growing, optimism is at a high. Within this Optimism, we see the word “Launchpad” being coined quite often in the DeFI Space. Launchpad and its participation are slowly reaching its peak as in 2021 with more people willing to jump in the opportunity early. So let us take a closer look on what a launchpad platform really is and how it actually works within the DeFI Space?
Launchpad = An early Opportunity
As 2023 unfolds the DeFI Space continues to recover its growth trajectory from the slump its experience during 2022. The adoption of Digital Assets also continues to grow as it is pushing more than 400 Million users this year and closing in on the 1 Billion mark by 2025. With this enormous growth and enthusiasm in the DeFI Space, thousands of DeFI Projects are also created monthly with every project trying to provide an edge over the others.
Some of these projects would eventually gain huge success over the years such as Ethereum which has grown into a titan within the DeFI Space in less than a decade while many thousands of others would fade away into non-existence when the hype slows down. One common thing is that all of this project started from an idea while developed over time with the right funding to turn it into a reality and become a part of the global community.
Funding is usually done by the sale of the tokens/coins that are generated by the project to potential enthusiasts and users who are a part of the community. This Funding round on the initial phase is usually carried out by the project themselves through a phase called Private Sale. Private Sale might be enough if you have garnered enough community to support your development but usually after sometime, the project might have to resort to other alternatives.
This Alternative is usually what you called a Public Sale and involves intermediaries to carry out this funding round for you in order to reach a larger audience. This is the phase where you will come across the word “Launchpad” very often as this term is usually coined by an exchange platform who are the usual intermediary for this Public Sale and it has gained popularity in recent times due to the high amount of projects participating in it.
Launchpad Platform is a phase that is provided by the exchanger platform to obtain a prospective new digital asset at its earliest value. The term “Launchpad’’ itself originated from the analogy of Launching a Rocket Ship as it represents the stage where the Rocket is ready to lift off. Similar to this, Launchpad provides a stage for the project to be available for the global community that the Exchanger Platform has so that it could generate interest and lift off when it’s officially listed.
So how does it work?
Launchpad platform usually works in a series of rounds with a preset supply and price of the digital asset that is allocated by the project team. These rounds will end either when the amount of supply is completed or when the time comes to a close and it will be preceded then with the next round. You can participate in this Launchpad by obtaining your favoured Digital Asset and it will be distributed/received in your Wallet after the round or launchpad stage has ended.
How do you participate in a Launchpad?
Most Exchanger platforms will require you to create a Wallet on their platform and complete a standard KYC procedure before you could participate in it. After you completed this stage, then you will have to make a deposit into your Wallet which will then be used to obtain your favored Digital Asset. These steps will obviously differ across different projects and exchange platforms.
Why is it so popular?
Launchpad Platform gained its popularity after the Bitcoin Boom in 2017 as many projects were introduced in the market with the aim of being the next Bitcoin. This is where Launchpad Platform starts to be introduced to sift through the masses of projects and provide a chance to the global community for prospective ones. Launchpad also provides a space for the massive amount of users to obtain their digital asset before it becomes publicly available.
Launchpad also is a chance to enforce the new and upcoming regulation within the DeFI Space as projects will be passed through a due diligence process to make sure that only the right project with right fundamentals are boarded into the Launchpad and listed later on in the Exchanger Platform. This is a much easier process to enforce a new regulation within the DeFI Space than when the Digital Asset is already listed on Exchange platform.
There are numerous Launchpad Platforms that are provided by various Exchangers worldwide but some of the most popular ones include Binance Launchpad, Kucoin Spotlight and Gate.IO Startup that have raised and grown many different projects across its platform. With the amount of adoption growing within the DeFI Space, expect this Launchpad platform and many more to bring more success stories into the space.
Why should you participate?
Although the amount of users within the DeFI Space continues to grow there is still only a small proportion of users that participate in the Launchpad Platform so the question is why should you participate? Why should you participate in an early stage of a project where there is still a lot of uncertainty heading into its listing stage? Here are some reason on why you should consider participating:
- Getting in Early:
Remember how Bitcoin have shown a remarkable growth in less than a decade? Imagine if you could turn back time and get in early before Bitcoin was available to be traded on an exchange platform, would that be an amazing opportunity for you? Launchpad Platform serves exactly just that, a chance for you to jump in early on a prospective project before it is available for listing in the global community. With this it’s also important to remember that not all of these projects may end up working out so definitely proceed with caution but before the next time you scroll the notification away on a new launchpad within your Exchanger Platform, you might want to take a look and seize the opportunity early.
- Familiarizing yourself with your Favored Digital Asset
Launchpad platform also serves as a platform to know the project better before the listing stage. With the Marketing activity and information provided by the project team, it is a chance for you to do your research on the project’s potential within the future and grab at a fair value before it’s too late!
- Helping Innovative Ideas to Grow
Your Participation within the Launchpad platform provides much impact for the Project itself as it allows the team to create their Idea and Innovations into a reality which will in return provide more value to you with the growth of a project. This Launchpad platform is vital in its role as it continues to ensure that the Innovative Ideas within the DeFI Space are provided for them to shine and become a reality. This will then encourage more innovators within the DeFI Space to push the development further so your participation will always be impactful.
In short, Launchpad Platform is a great place for both the project and the users as both parties could provide an enormous benefit to each other. If done with the right intention, Launchpad Platform could be a powerful tool to spearhead new innovations and create new Titans within the DeFI Space. This is why you should always Do Your Research so you can find these right opportunities and seize them early before they lift off.
We in Nagaya Technologies Pte. Ltd are excited about the developments within the cryptocurrency space. We believe that innovations should be able to provide sustainable and scalable value to all its users. This is why we decided to create the world’s first hybrid cryptocurrency called Nagaya which has a gold backup and subsidiary projects to provide value and sustainability over time. For more information regarding the latest updates on Nagaya and our whitepaper, you can visit us at nagaya.io
Or you can obtain your Nagaya now through the Launchpad Platform at latoken.com/ieo/NGY