How to Profit BIG TIME With Crypto Launchpads

We are at the precipice of a new financial world

Alas, it’s truly an exciting time in history as opportunities and innovation are abundant within the space. With the rise in blockchain, Defi, NFTs, and the metaverse comes the rise in new projects, innovations and thus opportunities to profit. Although, with this rise comes the increased risk of more elaborate scams, which is actually one of the many aspects that helped birth cryptocurrency launchpads.

So what is a launchpad? How does it work? And, how can you profit off them? This article will give you everything you need to know.

What are launchpads

Crypto launchpads are one of the most popular innovations within the crypto space, allowing access to upcoming and potentially highly profitable cryptocurrency projects. Launchpads do this by enabling the blockchain community to discover upcoming crypto projects in their early stages, filtering through the noise to find projects that deserve to stand out from the rest. Projects also benefit, as they’re able to gain increased attention from launchpad communities by promoting their project to a broader audience. Helping new projects gain new investors and community members. Many launchpads also help projects develop, market and structure their projects, so you can also think of launchpads as startup incubators for cryptocurrency and web3. However, unlike companies, projects don’t sell shares of their company; instead, they have tokenized coins which sold through the process of a launchpad.

So why do we need launchpads to do this?

Launchpads enable new and valuable projects and tokens to more people with better credibility and safety. Here’s why.

In the past, investors risked investing in scams because of the sheer growth and innovation of the crypto market. It was challenging to decipher between credible projects and what was destined to be nothing but a rug pull. A rug pull is when people (usually founders) create something that seems credible so that naive people hype in with their investment — founders generally steal the investment and ditch the project entirely. History has shown how easily investors (especially new investors) can get scammed by hype. Because of this — it becomes harder for credible crypto projects, legit ones, to break through all noise amongst all the shady projects out there. So launchpads not only allow people to get access to those more credible and valuable projects, but they provide a layer of trust and credibility to investors.

But how can we trust that launchpads will onboard valuable and credible projects?

BECAUSE Launchpads are usually crypto projects themselves. Launchpads are therefore incentivized to onboard credible projects to raise the price of their token. Launching consistently credible and valuable projects will ultimately trickle down to the launchpad’s success, increasing the demand for their native token and benefiting price. Ultimately, the community wants to trust a launchpad’s ability to source projects that deserve investment, and the demand for the native token can reflect that trust. The price of the native token can be seen as an indication of a launchpad’s success.

How launchpads work

Each launchpad differs slightly in processes and rules, but they generally follow the same structure.

• Launchpads (usually) require investors to buy and hold their native tokens to participate in IGOs (Initial Game Offerings). You can think of this as a private invitation system to invest in new and upcoming projects. Launchpads connect interested investors with tokenized projects before they hit the market, offering a bargain price per token. So by holding the launchpad token, your intentions should be to find new and upcoming projects.
• There are different allocation methods for different launchpads, but generally, the larger holders are guaranteed a higher probability of access to IGOs. While smaller holders are distributed access through a lottery system.
• Some launchpads (such as Seedify and V launch) provide staking, which means the longer you hold, the larger your allocation grows and the higher probability of obtaining an IGO.

Profiting through launchpads

1. Through new and upcoming projects
2. Through the rise of the launchpad token price

When a launchpad has a consistent run of successful projects, its token will likely increase in price as it gains credibility and demand, doubling the reward for investors. Although, this can go the other way. If a launchpad has a consistent run of bad projects, this will reflect negatively on the launchpad itself, decreasing demand for its token and negatively affecting the price.

Things to remember if you plan on getting involved in launchpads

• Investment requirement — sometimes, buying the necessary amount of tokens to participate in launchpads can be very pricey.
• Launchpads are part of the high-risk arena of crypto investing. So if you’re new, it may be challenging to evaluate a project accurately. Therefore launchpads may be better suited for more experienced crypto investors.
• The success of the projects launched on the launchpad is highly correlated to the demand for the native launchpad token. For this reason, I highly recommend looking at the previous percentage gains and losses from previous launches before investing and partaking in this exciting corner of cryptocurrency investing.