On today's Coinmarketcap episode, we take a deep dove
into two of the most popular Binance tools LaunchPool and Launchpad.
These two services are often mixed up with one another.
Gee, I wonder why.
And that's why we put together this guide here to explain what
launchpad and Launchpool are, how they are alike, and where they differ.
Make sure that check the timestamps in the description to easily
navigate the video.
And before we dove into a deeper description, here's a quick explanation
of Launchpad and launch pool for those of you who want a quick answer.
So Binance Launchpad is an initial exchange
offering or IEO platform through launchpad.
You can earn rewards in the form of tokens by fundraising, new and exciting
projects, all of which are hand chosen and vetted by Binance.
The number of tokens you can earn depends on how much crypto
was committed overall and your rewards will be capped.
Binance Launch Pool, on the other hand, is essentially an exchange
based liquidity farming service.
Through launch pool, you can earn passive revenue
by staking your crypto in exchange for tokens from new crypto projects.
When the staking period is over, you get back
your initial investment along with any reward tokens.
In many ways, launchpad and launch pool are similar.
Both services are provided by finance and drive, support and awareness
for promising crypto startups.
Both offer early access to quick and easy revenue yielding services
to Binance account holders, and both support the projects they help
launch through media and marketing advice as well as fundraising assistance.
But they are of course different in many ways as well.
Launchpad involves investing in projects before they launch, which
somehow mimics a traditional stock IPO.
Meanwhile, Launchpad requires you to stake tokens to earn new ones,
which comparatively is a more passive way to grow your crypto portfolio.
And that concludes our brief overview of how Launchpad and Launchpad will differ.
Now we're going to explore Binance's two services in detail.
The long version.
What is Binance Launchpad is the world's first
initial exchange offerings or IEO platform.
If you're not familiar with the term, IEOs are where crypto startups
raise capital by selling their native tokens to grow their platforms
through an exchange like Binance during the pre Launchpad era.
Most crypto projects raise funds through initial coin offerings or ICOs,
which were comparatively unsafe and besieged by scams and fraudulent behavior.
Yeah, those were the days.
So how does Launchpad work?
Well, Launchpad gives you a first look at dozens of promising
new crypto ventures, all of which are handpicked by Binance.
What's more, investing through Launchpad is simple, easy and safe.
When you invest in a crypto project through Launchpad,
you need to lock up some crypto for a set time, usually around seven days,
and during this window you cannot withdraw these tokens.
Once the period is up, Binance lists the project's tokens on its spot market,
and you can freely trade your new tokens during the first few.
Launchpad IEO is back in 2019.
Investors could buy up
as much of a Launchpad project's token allocation as they wanted.
This inevitably led to whales buying up all of the tokens
and squeezing out smaller investors.
If this continue, this would mean that one or two wealthy
individuals could have had controlling stakes in some major crypto
projects, damaging their claims to operate in a decentralized way.
So to rectify this, Binance introduced
a lottery system to democratize the token buying process.
Its mechanism lets you claim up to five lottery tickets
based on a snapshot of your BNB token holdings over the previous 20 days.
And obviously, the more BNB tokens you hold, the more lottery tickets
you can claim, and the more tokens you can earn from the IEO
to claim your lottery tickets,
you'll need to commit some crypto to a holding period as discussed earlier.
Once a time ends, a claim tickets button appears
for a 24 hour period during which you can confirm them.
The lottery then takes place and the winners automatically participate
in the launchpad.
IEO event.
Once the IEO ends, Binance will automatically distribute your newly
accrue tokens.
The number of coins you can earn depends on two factors.
How many lottery tickets you claimed and the total amount
of crypto invested by all the investors through the IEO.
Again, the more money you invest, the more tokens you will earn.
And speaking of success stories, Launchpad has provided investors
with some visible returns in the three years it's been up and running
lottery tickets for Axie Infinity, for instance, were at one point worth
an astonishing $250,000, according to Yahoo!
So why do startups want to work with Launchpad?
Well, Launchpad gives new crypto companies
a wealth of benefits and advantages they would not have otherwise have.
For instance, easy access to Binance's community of investors is another
benefit is an easier marketing strategy, as viewers who use Binance will know
whenever the exchange works with a new project,
especially the Launchpad, once its media and marketing materials
will be advertised all over Binance, his website and social media accounts.
Additionally, once the project officially launches, its token
is listed on Binance as spot market with multiple trading pairs,
which can provide some much needed daily trading volume.
And let's not forget that
those projects who work with Launch Pool are checked and verified by Binance,
which lends them some serious credibility in the wider crypto community.
Are Launchpad projects successful?
In short, yes.
Launchpad alumni are a remarkably successful bunch.
So far, Launchpad has raised funds and rolled out more
than 60 crypto projects since 2019.
Those tokens have since accrued billions of US dollars in value.
For instance, there's Polygon.
Its value has soared nearly 10,000% since its launch,
and its market cap is now 3.2 billion at the time of recording this.
There's also Axie Infinity.
One of the biggest success stories from the previous bull market,
whose token currently has a market cap of more than $1 billion.
And who could forget BitTorrent, whose launch saw 50 billion
BTC tokens sold in under 15 minutes?
These are some of the better known and most successful launch pad graduates.
But several recent launches have enjoyed remarkable success as well.
For instance, Stepn a move to Earn Finance app
got underway with help from Launchpad in March of 2022.
Its tokens surged more than 450% by late June of 2022.
Another successful launch was League of Kingdoms, a blockchain
MMO game where you can build your own kingdom and army
make alliances with other players and take over other players.
NFT based land.
Its token LOKA had doubled in price by April.
However, it is now facing a correction, same as other altcoins.
The launchpad team will not accept any old crypto project,
especially those only hoping to make a quick buck.
Project teams who want to launch their new company
through Launchpad have to meet certain requirements.
They must have, for example, finished business and token
economic models which they can present to the launchpad team.
They also need to provide a brief history of their development team,
including their experience and qualifications.
And finally,
their project must be in a mature stage suitable for large scale adoption
and have the potential to benefit the wider crypto community.
How to use Binance Launchpad as an investor to use Binance Launchpad,
you first need to sign up for a Binance account and pass some
KYC and identity verification checks.
Once that is out of the way, you then log in.
Click the menu icon on the top left of the taskbar
and select launchpad from the dropdown menu.
Your browser will then bring up a page showing all the active and finished
launchpad projects.
You're now free to read about and partake in whichever launchpad promotion
you want now.
What is Binance's launch pool?
Well, launch pool combines the security and convenience of managing
your crypto assets through a centralized exchange with DeFi returns.
It allows you to earn passive revenue from your cryptocurrency portfolio.
Launch pool got underway
during the height of the so-called DeFi mania towards the end of 2020.
The hype was partly driven by what's called yield farming.
It involves supplying crypto to a liquidity pool through
which other people can exchange different cryptocurrencies without an intermediary.
As a reward for supplying liquidity to a pool, you earn interest.
This process, in short, describes what Binance Launchpad really
is a centralized yield farming service.
Launch will work similarly to other providers.
You earn new tokens
by staking your current holdings for a specified period, usually 30 days.
And while launch pool does not cap the number of tokens you can stake.
The minimum amount is 0.1 of whatever token you are staking.
How do launch pool rewards work?
Launch Pool calculates new rewards every hour from the moment you stake
your tokens, the quantity of tokens you accumulate varies by how much crypto
you stake.
The advertised return or EPR and the total quantity of crypto
committed to the pool by you and all the other investors.
Following the first seven days of the new projects Farming
Period, Binance lists its token on the spot market.
At this point, you and all the other investors can trade your accrue tokens.
From this point on, you can add to your investment,
withdraw your tokens or trade your rewards whenever you want.
How can you use launch pool to earn some cash from farming
through Binance's Launch Pool? You need a Binance account.
Of course, once you have an account, you need to log in
and then head over to the launch pool page.
From there, select the pool you want to stake in type in
however many tokens you want to commit and then click stake.
That's it.
You don't need to meet any stringent criteria to form three launch pool,
but you do need at least 0.1 of whichever token you want to form.
If you decide to use BNB tokens, those will still count
towards your launchpad lottery ticket requirements and upcoming airdrops
and will still help you accrue other VIP benefits similar to Binance Launchpad.
The projects that feature on launch pool have Binance as full support.
This includes advisory services, marketing assistance
and access to Binance is enormous community of investors.
Upon a launch pool project's token launch, Binance
creates multiple trading pairs for its spot market,
which allows every Binance account holder to trade the project's tokens.
Just like Launchpad Launch Pool boasts dozens of success stories
during the six months following launch pools rollout in September of 2020.
15 projects locked away, nearly $5 billion in value
and distributed $529 million in tokens
for more than 400,000 Binance investors.
The CEOs and founders of projects that graduated from launch pool
have returned mostly
positive feedback about their experiences working with Binance.
Reef's CEO Denko Mancheski remarked that thanks to LaunchPool quote, the growth
and adoption that we experience are on an unparalleled scale.
Similarly, Litentry CEO Hanwen Cheng says that support provided by launch pool
was unprecedented and that his company, quote, unlocked great value
that goes beyond traditional bootstrap and saw the profound, invisible
long term impact that the BSA ecosystem has on us.
And that's it for today's Coinmarketcap episode.
Let us know how you're using Binance Launch Pool and Launchpad in the
comments below.