Navigating the Crypto Market: The Power of Launchpads for Retail Investors
Welcome back everyone!
For the last 6 months I have tried myself as a leverage trader on altcoins market, trying to grow my capital on pre-halving & post-halving market movements. And what can i say, now i regret everyday that I ever decided to touch that black hole . So today I decided to bring up something that from my experience makes you money instead of hunting you down to liquidate your assets.
The crypto market can be a challenging place for retail investors, especially those looking to make quick gains by trading altcoins. It seems like every time we take a step forward, we get wrecked by influencers pushing pump-and-dump schemes, market conditions that turn on a dime, or VCs dumping their bags on us. Trading based on technical analysis often feels like little more than educated guessing, and the constant volatility can be discouraging. But there is a more sustainable, stable, and fair way to earn money in crypto: launchpads. In this article, we'll dive into how launchpads work, their advantages, and the challenges they pose. We'll also highlight three new launchpads where you can still get in early, and discuss why this approach might be a smarter strategy for retail investors.
The Mechanics and Benefits of Launchpads
Launchpads are platforms that help new crypto projects raise capital and gain exposure by allowing early-stage investments from retail investors. They act as intermediaries between projects and investors, ensuring a fair and transparent process.
They offer a more structured and potentially less volatile investment opportunity compared to traditional trading. Since investors get in at an earlier stage, they can ride the wave of initial growth that new projects often experience, something that is typically missed in standard trading practices where retail investors buy tokens after they have already surged in value.
Moreover, launchpads are a very fast growing market. From 2019 to 2023, the number of projects launching on decentralized launchpads surged exponentially. In 2019, there were around 50 projects that successfully launched via these platforms. By 2023, this number had skyrocketed to over 1,500 projects, marking a staggering 2900% increase over just four years (KuCoin). This explosive growth can be attributed to the increasing demand for transparent, decentralized fundraising methods and the rise of blockchain and Web3 technologies.
According to recent industry reports, the overall market share of startups launching on decentralized platforms has also seen significant growth. In 2019, decentralized launchpads accounted for less than 5% of the total fundraising market in the crypto space. By 2023, this share had expanded to over 30%, indicating a significant shift in how new projects prefer to raise capital (Bitbond) . This trend is expected to continue as the benefits of decentralized launchpads—such as lower costs, broader access to global investors, and immediate liquidity—become more widely recognized.
To conclude here’s why launchpads are game-changers for retail investors:
- Early Access: Investors get early access to promising projects before they hit the broader market. This can lead to significant returns if the projects perform well. For example, my first gain from crypto i saw when i participated in Scaleswap’s IDO of XTM, and within 5 month turned my allocation of 200$ into 7000$
- Lower Risk: Projects on launchpads are typically vetted, reducing the risk of scams. This vetting process includes an in depth review of the project's whitepaper, team, and overall feasibility, helping to filter out low-quality projects.
- Community Engagement: Investors can be part of a project's community from the beginning, often gaining additional benefits like governance tokens. This early involvement allows investors to contribute to and influence the project’s development. For example, Uniswap distributed 400 UNI tokens, valued at $1,400, to its early users, fostering strong community engagement and loyalty. These tokens provided significant returns, further incentivizing participation.
However, launchpads also have disadvantages:
- Accessibility: High demand can make it difficult to secure an allocation. Popular launchpads often have thousands of participants competing for a limited number of spots, which can be frustrating for smaller investors.
- Initial Investment Requirements: Some launchpads require a significant initial investment to participate. For instance, DAO Maker requires participants to stake at least 2,000 DAO tokens, valued at approximately $920.
- Market Volatility: Even vetted projects can fail due to market conditions. The crypto market’s inherent volatility means that even the most promising projects can face challenges post-launch, affecting investor returns.
Many of the cons of being a Launchpad’s investor you can eliminate by becoming an early adopter, and jumping early in the boat, when there is not that much demand and crowds of degen retailers aren't there.
So, here are some opportunities you still can take advantage of:
Top 3 NEW projects in the space
ChainGPT Pad
ChainGPT Pad, launched in 2023, stands out by integrating AI technology into its platform. This AI-driven approach helps in evaluating projects and providing insightful analytics to investors, ensuring that only high-quality projects are featured. The platform offers a tiered staking system (Bronze, Silver, Gold, and Diamond), where users stake $CGPT tokens to qualify for different levels of participation. This system provides various benefits, including better allocation chances and exclusive perks for higher tiers.
Pros:
- High Returns: Some projects, such as Solidus (AITECH), have achieved impressive ATH ROI of up to 41.19x for early investors.
- AI-Driven Analytics: The use of AI for project vetting and analytics enhances the reliability and potential success of the projects listed.
- Community Support: Strong community engagement and support for the projects, which helps in building momentum and initial liquidity.
Cons:
- High Demand: Popular IDOs can be oversubscribed, leading to limited token allocation for individual investors.
- Entry Barriers: The need to stake $CGPT tokens can be a financial barrier for small investors.
- Participation Requirements: To participate in IDOs on ChainGPT Pad, investors need to stake a minimum of $CGPT tokens. The exact amount varies by tier, but entry-level participation generally starts at a few hundred dollars' worth of $CGPT tokens.
BullPerks
BullPerks, also launched in 2023, prides itself on being the "fairest and most community-oriented decentralized VC and multichain launchpad." The platform is designed to ensure fair access and participation opportunities for all investors, regardless of their investment size. Unlike many other launchpads, BullPerks offers a refund mechanism under certain conditions, providing additional security and confidence for investors. It supports nearly all major public blockchains, including Binance Smart Chain, Solana, Cardano, Polygon, and more.
Pros:
- Fair Access: The six-tier system based on $BLP token staking ensures that all participants have a fair chance of participating in IDOs, with higher tiers receiving better allocation.
- Strong Returns: Projects like Bloktopia have achieved high returns, reflecting the platform's ability to attract and support high-quality projects.
- Security Measures: The refund mechanism and careful project audits add layers of security for investors.
Cons:
- Token Requirements: Staking $BLP tokens is necessary for participation, which can be a hurdle for new or small investors.
- Technical Issues: Some users have reported technical issues during high-demand IDOs, which can affect the participation experience.
- Participation Requirements: To participate in IDOs on BullPerks, investors need to stake $BLP tokens. The entry-level staking requirement is relatively low compared to some other platforms, making it accessible to a broader range of investors. The exact amount required varies by tier, but generally starts at a few hundred dollars' worth of $BLP tokens.
Alphamind
The main unfair advantage of AlphaMind is that it is a side company of InnMind. Which is at the moment the biggest web 3 ecosystem,focusing on connection of start up and investors, and accelerating projects from early stages. With over 7 years of traction on this market, its resources and raises for projects like metis, we can expect an outstanding selection of projects from the team.
However it is also the earliest call on our list, alphamind isn't yet live but you can already become an early adopter and get prepared for the upcoming releases. InnMind developed a unique karma system which ensures fair community driven distribution of allocation and reward system designed to benefit early adopters and engaged community members.
Pros:
- You are very early.
- Backed by the biggest web3 startup ecosystem.
- Lower entry barriers compared to competitors.
- Focus on community.
Cons:
- New platform, still gaining traction.
- Limited project portfolio initially.
In conclusion, launchpads offer a promising avenue for retail investors to gain early access to new crypto projects with reduced risk. While challenges like accessibility and market volatility remain, platforms try to provide a balanced and user-friendly approach to navigating these opportunities. And the best way to be a profitable Launchpad investor is to be with the project since its first steps. So wish you luck, and don't miss this out!