Crypto Launchpad (Launchpad), also known as crypto incubator, is a token public offering platform for crypto projects . It offers investors the opportunity to invest in early-stage crypto projects before they go public.

Launchpads come in many types. In addition to standalone platforms, it is often embedded as a feature on crypto exchanges. Public offering methods also vary depending on the type of exchange/platform. For example, the public offering method of Launchpad on DEX is IDO, and the public offering method of Launchpad on CEX is IEO; while a separate Launchpad platform may include multiple public offering methods such as VC, IDO, and INO (Initial NFT Offering).

Want to know what IDO and IEO are? Please refer to What is ICO / IEO / IDO? chapter.

What are the benefits of Crypto Launchpad?

• For investors, public offerings on Launchpad are an excellent opportunity for them to participate in primary market investments. The price of tokens in the primary market is often lower than in the secondary market. Therefore, Launchpad can provide investors with the opportunity to buy early project tokens at low prices so that they can sell the tokens and earn profits when the price increases in the future.
• For crypto projects, Launchpad can help projects expand financing channels. At the same time, it is also a means of Go-to-Market for the project side. Launchpad can also help project parties attract more retail investors and raise funds in a more even manner, thereby reducing to a certain extent the risk of price collapse that may result from whale selling in the future.

How to participate in the Crypto Launchpad public offering?

Currently, most of Crypto Launchpad’s public offerings are IDO. Among them, the most common way to participate in Launchpad IDO is token staking.

In this method, investors need to pledge platform tokens to obtain the opportunity to participate in IDO. The greater the number of pledged tokens, the greater the probability of winning IDO distribution, and the greater the number of project tokens that can be purchased.

For example, in DAO Maker. An investor staking 2,000 DAO has a probability of receiving an IDO allocation of approximately 4.6%; an investor staking 50,000 DAO has a probability of receiving an allocation of approximately 149%. Other Launchpads that use this participation method include BSCPad, Polkastarter, Avalaunch, and others.

In addition to token staking, a few Launchpads use other public fundraising participation methods such as fair launch (eg. Camelot Launchpad uses Fair priming model). That is, all participants can obtain IDO allocations and the allocation amount is the same. The final price of the token is determined by the price discovery mechanism and will change dynamically based on supply and demand.

To learn more about the Camelot Launchpad mechanism, please see "What is Camelot? Arbitrum Ecosystem Customizable Liquidity DEX and Launchpad - Ratings and Analysis".