The "Cryptocurrency Launchpad", also known as a crypto incubator, is a token public offering platform for cryptocurrency projects. It provides investors with the opportunity to invest in early-stage cryptocurrency projects before they go public.
There are various types of "Launchpads". In addition to standalone platforms, they are often embedded as a feature within cryptocurrency exchanges. The public offering methods also vary depending on the type of exchange/platform.
For example, the public offering method on a DEX Launchpad is IDO, while on a CEX Launchpad it is IEO; and a standalone Launchpad platform may include various public offering methods such as VC, IDO, INO (Initial NFT Offering), and more.
What are the benefits of Launchpad#
- For investors, public offerings on Launchpads are an excellent opportunity to participate in primary market investments. Token prices in the primary market are often lower than in the secondary market. Therefore, Launchpads can provide investors with the opportunity to buy early project tokens at a low price, so they can sell the tokens at a profit when the price rises in the future.
- For cryptocurrency projects, Launchpads can help expand funding channels. It is also a means for projects to go to market. Launchpads can help projects attract more retail investors and raise funds in a more evenly distributed manner, thereby reducing the risk of future price crashes caused by large whales selling off tokens to some extent.