The dawn of the democratization launch pad

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Those who took place in 2017 may remember the initial coin offering (ICO) craze, when a large number of new projects appeared-many of which brought amazing returns to participants in weeks or months.

Although many ICO-funded projects ultimately proved to be failures, a small part of them has grown and evolved into the current heavyweight blockchain platforms, including Ether (Ethereum), Filecoin (FIL), Polkadot (point) And Cardano (have) — In terms of market value, they are all among the top 30 crypto assets.

Average ICO generate Bringing up to 1,320% of profits to short-term investors, making them the most attractive investment opportunity in recent years-even though they Less than stars Overall it is a long-term performance.

But there is a big problem. Due to the large number of ICOs and the simultaneous excitement in the market, it is not only very difficult to accurately measure the strength of the project, but also for ordinary users, it is almost impossible to obtain a place in the top ICO-usually it requires pure luck, personal connections or one A substantial investment to secure a slot.

The beginning of change

This situation started to change in 2019 The emergence of Binance Launchpad, This is the first time that it provides a way to open up early projects to the public, or more specifically, anyone holding Binance’s native utility tokens (Bitcoin).

Although Binance Launchpad can be said to have launched a democratic cryptocurrency crowdfunding space, it has gradually become more and more difficult to obtain. Now, users need to hold a large amount of BNB to ensure its reasonable scale allocation. The original DEX product (IDO)-Make it fair access.

But last year a large number of alternative platforms emerged, all of which have one goal: to democratize access to next-generation encryption projects and protocols. These platforms are called launchpads for short, with manually selected and curated lists of new projects that are available to users.

The vast majority of this year’s best performing assets went through one or more launch pads for the final stage of token sales. This includes Project Seed, PulsePad, WagyuSwap and My Neighbor Alice — each project has a return on investment (ROI) of over 30,000%.

The democratized launchpad assigns access to new opportunities to potentially hundreds of users, and each user has the opportunity to participate or be entitled to a guaranteed distribution, depending on the specific circumstances of each platform. Since these items are manually reviewed, they help reduce fraud, money grabs, and scams.

But the huge growth of these platforms has begun to have an adverse effect on users, and as the number of users increases, their distribution scale is gradually reduced. Many decentralized launch pads have also begun to see their minimum entry barriers increase, and the lowest level of some launch pads requires investments of thousands of dollars.

Launch Pad Industry

Today, the launch pad industry is densely packed with different platforms, many of which are for projects launched on specific blockchains or specific industries/segments. Although there are usually a variety of platforms that provide launchpad services for each blockchain, some platforms have developed to dominate their respective chains-absorbing most high-quality projects.

At present, DAO Maker currently dominates the field of Ethereum projects. In recent months, it has launched heavyweight products such as XCAD Network, Opulous, Orion Money, GameFi and DeRace. Due to the recent successes of NFTLaunch, BitOrbit, WagyuSwap, and ADAPad, BSCPad is generally regarded as the preferred launch pad for Binance Smart Chain projects.

Other up-and-coming blockchains also have their own excellent launchpads, including Solarium, which is a Solana-centric launchpad that hosts the very successful projects SEED, Cryowar and DeFi Land game money-making projects; and Avalaunch, which is in the Avalanche ecosystem A series of popular assets have been launched in the system.

On the other hand, BlueZilla has developed and operated launchpads across multiple blockchains, including Cardano (ADAPad), PulseChain (PulsePad) and KuCoin Community Chain (KCCPad), to cast a far-reaching network. Through this strategy, it hopes to democratize access to projects that enrich these new chains.

Launchpad is one of the main reasons why Avalanche, Solana, Terra, and many other modern blockchains have witnessed such an explosion of Cambrian innovation in recent months, because they provide a simple way for projects, not only to ensure the safety of funds and Spreading their tokens can also guide their initial user base.

Some are now large enough that they are officially supported and endorsed by the local blockchains they support, such as VelasPad, which cooperates with the AI-driven Solana fork called Velas.

Launchpad and blockchain space

By providing a reliable starting point for new projects, the launchpad has become the main service in the blockchain field, and the most popular launchpad can have tens of thousands of users.

Although the launch pad has successfully democratized the opportunity to obtain promising investment opportunities, not all launch pads are built equally. In the context of increasing competition, it may be difficult for those less successful launch pads to obtain high-quality project.

In fact, there are now a large number of launch pads, but relatively few promising projects. This has led to fierce competition between launch pads, as they are all fighting for the best projects for their respective communities. Nonetheless, only the most prominent launch pads have the community and track records needed to be critical of their projects, which usually plunges less mature platforms into the lowest-quality projects.

As we get deeper and deeper into the bull market, the quality gap will only increase. This may pose a challenge to inexperienced traders and investors, who may suffer losses because they entrust more and more funds to the lackluster. Launch pad.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Kalanimeng Is the Ecosystem Growth Director of Velas, a decentralized smart contract platform forked from Solana. As a serial entrepreneur and early builder in the blockchain field, Moe previously founded the Divi project and, as its former creative director, helped CoinPayments develop into the world’s leading cryptocurrency payment processor.