Binance is the world’s largest Bitcoin exchange in terms of trading volume and is supposedly the fastest-growing profitable unicorn start-up in the history of DeFi. If you’ve been using Binance for a while now, the chances are high that you’ve come across Binance Launchpad already.
There have been several very successful projects that used the Binance launchpad to launch their initial token. It helps quality projects fundraise while allowing crypto users and investors to generate enormous returns. Every launch on the platform has attracted more projects, creating a virtuous loop in the eyes of the investors.
In this article, we will explore Binance Launchpad and how to get started. Let’s get going!
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What Is The Binance Launchpad?
Binance Launchpad allows projects to create a fundraising event called Initial Exchange offering, where users can buy tokens with money on hand in their exchange wallet.
An initial exchange offering is a form of ICO administered by an exchange instead of the project itself, for creating fundraising.
Binance Launchpad is Binance’s dedicated platform for token issuance.
It is an innovative platform where users can get first access to intriguing new cryptocurrencies from various projects. Additionally, it promotes acceptance and awareness of these projects.
Now that we know what Binance Launchpad and IEO are let us look at their working mechanism.
How Does The Binance Launchpad Work?
To be listed on Launchpad, every project must undergo a strict review process. This is done to ensure that the projects meet all the necessary criteria to match the Binance standard.
The projects have to meet the following review criteria:
- Relatively mature-stage project development
- Readiness for large-scale adoption
- A strong and committed team
- Potential to benefit the growth and development of the wider crypto ecosystem
- Once the project meets and passes the selection process, it gets featured on Binance Launchpad and becomes open for all the Binance users to participate in that project’s token offering.
All Binance users can participate in the token sales available on Launchpad. It is always good to research an exchange platform and projects launched on it before participating in a token offering.
How Does a Project Launch In The Binance Launchpad?
Binance pioneered the Initial Exchange Offering (IEO) through Launchpad. With the dawn of the IEO, crowdfunding enters a whole new level with the safe and easy use of cryptocurrencies to benefit both blockchain projects and their investors.
Here we will take you through the step-by-step journey of launching a project using the Binance Launchpad.
- Open the Binance Launchpad via https://www.binance.com/en and click on the token launch platform.
2. Launch your Project by clicking on Apply to Launch
3. As soon as you click to launch your project, you will be redirected to an external google form. Here, you will be required to fill in your company’s and project’s details.
4. Upon completing the form, your information will be directed to the Binance platform for scrutiny before transitioning to Binance Launchpad. These comprise the business and token economic models, auditing, and overviewing of the project team’s history. Before a project can be listed, Binance searches for these essential components, including the project’s developmental level, which should be at a reasonably advanced level and have a scalable infrastructure, among other things.
5. If your project passes the investigation process, it will be featured on the Binance Launchpad. Now, your project will be open to all Binance users as a potential investment option
Here is a schematic showing the steps of launching a project on the Binance Launchpad.
We hope now you have a decent idea about the world’s large crypto-exchange Launchpad. There are a few minor topics related to this domain, including the Binance launchpad lottery, Binance Launchpool, benefits of Binance Launchpad, and Top 5 crypto projects on the Launchpad in 2022. Let us have a look at them in a row.
The Launchpad initially offered project tokens on a first-in, first-out basis. However, Binance updated the token distribution to a lottery mechanism for fairness and an increasing user base. This led to the institutionalization of the Binance Launchpad Lottery to be a popular method of token distribution.
What Is Launchpad Lottery?
The Launchpad Lottery procedure includes the following steps:
- A snapshot of the investors’ BNB holdings over a predetermined time that varies depending on the sale is taken after issuing a new IEO.
- A claim ticket button will show up after the BNB holding period for 24 hours so users can verify their lottery tickets.
- The lottery will begin, and the winners will instantly grant people access to the IEO in return for BNB tokens.
- The number of tokens investors can keep is governed by individual caps and overall commitment levels.
The procedure is rather straightforward to follow. This proceeds quickly and without incident, providing a seamless user experience for funding emerging ventures.
Difference Between Launchpad & Launchpool?
Binance Launchpad and Launchpool are both meant to drive financial support and awareness for promising blockchain start-ups.
Binance Launchpad basically promotes new start-ups to create a fundraising event by launching their token assisted by an exchange platform. On the other hand, Binance Launchpool is a staking platform where you have to stake your cryptos to earn new ones.
Let’s Understand the key differences between them:
- Allow investors to participate in an Initial Exchange Offering.
- Acts as a fundraising and awareness-generating platform for new blockchain start-ups.
- The process involved is the Initial Exchange offering.
- Each user’s token allotment is determined for around an hour after the culmination of the BNB commitment period.
- Allow users to use their crypto assets to deliver funds to a liquidity pool and generate returns in terms of a new token.
- Acts as a platform for users to earn an extra passive income.
- The process involved is Defi Yield Farming.
- Tokens in the Launchpool are determined hourly throughout the activity period.
What Are The Benefits Of Binance Launchpad?
Using Launchpad has many benefits for investors and crypto projects. We’ve listed a few for you here:
1. Token launch with a trusted platform
As the world’s leading exchange platform, Binance already has access to crypto holders and investors. Moreover, many of them are likely to be interested in gaining early access to high-quality token sales.
2. Protections for users and projects
Binance takes care of its crypto users with top-notch security, which extends to token sales. Projects don’t have to worry about creating their fundraising platform and risk being a target for attacks from bad actors.
3. Fast-track growth for deserving crypto projects
Projects featured on the Launchpad essentially get exposure to millions of Binance users across the globe. They get support from Binance for the initial issuance of its tokens and guidance from Binance’s listing and investment teams.
4. Equitable distribution of initial tokens offered
Binance Launchpad uses a lottery system for its token distribution. How many tokens investors can keep depends on how much was committed overall and is subject to individual caps.
5. Potential long-term success for projects and crypto holders
While results can vary from token to token, Launchpad has generally helped jump-start projects with considerable success.
Now, let’s look at the Top 5 Crypto Projects on the Launchpad in 2022.
Top 5 Crypto Projects On The Launchpad In 2022
By both the number of users and trading volume, Binance is the largest cryptocurrency exchange in the world. One of the IEO’s early adopters, Binance, developed its Launchpad platform to assist new crypto projects in raising capital through token sales.
Did you know that BitTorrent, a peer-to-peer file sharing platform was the first project to be released on the Binance Launchpad? The sale was a success raising $7.2 million in under 15 minutes!
And that wasn’t it! Next was the launch of Fetch. AI. An event that went down in crypto history – raising $6 million in a mere 10 seconds!
Following that, there have been many successful listings on the platform. Some of which we’ve mentioned below:
- MATIC – Scalable, Instant, and Secured Transactions for Blockchains
- Axie Infinity – A Digital Pet Universe
- The Sandbox – A Virtual World Built on Ethereum
- WazirX – India’s Most Trusted Crypto Exchange
- KAVA – A Cross-Chain Platform for Decentralized Finance
Note: These are not the only ones! The ones listed above are the top-performing according to us!
One of the most well-known brands in the crypto-Universe has been developed and aided greatly by Binance.
Binance goes beyond assisting the growth of successful crypto start-ups and providing an exchange for buying crypto. With token offerings selling out in mere seconds, Launchpad has proven to be the most effective IEO model in the market.
The value of projects that have been published on Binance Launchpad has already reached billions of dollars!
It will be exciting to see what the Binance ecosystem introduces next as we eagerly await additional rollouts!
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