A Launchpad is a a website used as a linked up point, for investor in search of opportunities and projects before their fundraising phase.
The main advantage for the former is that they can easily find several projects in the same place, without having to spend time and energy looking for them on the internet. They also benefits from the launchpad doing some thorough research on the projects they are offering, and proving some guarantees. This contributes to reducing the risk of rug pull. [definition needed]
From the point of view of the projects leaders, being published on a launchpad gives them access to an significant number of potential investors, in a single place. It also saves them some marketing expenses, as they benefit from the launchpad notoriety.
Some launchpad provides extra features to help the projects during different steps of their lifetime.
The following tables compare general and technical information for a number of Launchpads.
General information[edit | edit source]
Basic general information about the launchpads
Advanced Features[edit | edit source]
Funding Methods[edit | edit source]
A launchpad can offer one or several of the following funding process, with various effects for both the projects and the investors.
Fundraising through IDO[edit | edit source]
As the most usual way of raising funds on a launchpad, this is also the well known.
In this kind of fundraising, a project has to generate some Tokens, and save some of them for a distribution through the launchpad, before any public sale of market launch.
Investors will buy some of these tokens on the launchpad, for a cheaper price than the one expected to be set at a later sale, on market launch. They do this by betting on the fact that the token price will raise as soon as it can be bought by anyone.
Fundraising through StakeToEarn[edit | edit source]
This is one of the simplest and most reliable fundraising methods for both the projects, and the investors. All investors have to do is stake some tokens for a specific project, and in return, said project will provide investors with tokens of his own, at a defined rate, and with an amount already decided earlier in the process.
Fundraising through Liquidity Pool[edit | edit source]
This is only available on some launchpads, as they have to feature a DEX of their own, or partnerships with already existing ones. Projects will have to create a Liquidity Pool on a DEX, and provide a significative amount of liquidity in it. By doing so, they can benefit from both transaction fees on this pool, and from potential Yield Farming if it's made available on their pool.
Fundraising through Initial Stake Pool Offering[edit | edit source]
This is a fundraising method that won't be possible for every blockchain, as it requires the creation of a stake pool (for Cardano, this will be a delegation pool, with a Cardano Node).
In this case, projects will create a pool, get a variable amount of rewards from it, and redistribute their tokens to the investors who delegated to this specific pool, as this delegation helps the pool owner to get more rewards.
Airdrop[edit | edit source]
The airdrops are a different kind of tool, due to the fact that the projects won't gain any fund from this. It can be seen as a way to raise awareness on a project and on its token. By distributing some of its token freely, this can also allow a project to increase it's trading volume, and its TVL in DEX pools.