What is Crypto Launchpool?
Launchpool is a community-centric pre-IDO platform that was launched in February 2021. The investment platform prides itself on being a fair Launchpad that works for all stakeholders, providing users with a guaranteed allocation of a project.
Users wanting to utilise the Launchpool platform to invest in projects can use the LPOOL token. The LPOOL token is required to participate in Allocation Mining Events (AMEs), which is how Launchpool provides investors with a percentage of project tokens based on their initial investment.
The Launchpool team heavily vet projects before they are allowed on the platform to ensure that only the highest quality projects get access to their community of investors.
The platform is cross-chain and allows projects to be raised across multiple networks such as Ethereum and Binance Smart Chain.
How to use crypto launchpads
Understand the Basics: To use a crypto launchpad, you first need to acquaint yourself with the rules governing the platform. This might include the minimum required amount to participate, the token lockup period, and the distribution schedule. Such information is usually available on the Launchpad page and will also let you know if the exchange supports your jurisdiction.
Get Ready: Once you’re familiar with the process for the platform you want to use, then you can purchase the tokens required to be eligible for participation. Ensure that you purchase the tokens well ahead of schedule to avoid buying at a high price or missing out. If you’re going to participate on a DEX-based launchpad, then you’ll probably need to set up a Metamask wallet and connect it to the appropriate network (either Ethereum or Binance Smart Chain.) After setting up the wallet, you’ll need to send some ETH or BNB to the address to pay for network fees.
Participating: On the set date and time for the token sale, connect your wallet or log-in to your wallet to stake your tokens if applicable. Otherwise, claim the tokens allocated to you and withdraw the excess funds as is usually the case.
What is the difference between Launchpad and Launchpool?
For Launchpads, users are exchanging their tokens for a new one released during the token sale. For Launchpools, though, users have to lock their tokens in a pool for a specified period to earn the new tokens being distributed. The number of tokens to be allocated to each user isn’t predetermined but is often based on the stipulated APY provided by the host platform.
Is a Launchpad Token Sale Different from a Pre-Sale?
Yes. In a pre-sale, a project normally sells tokens to very early investors (can include venture capital firms) to cover the basic costs of setting up their business. The pre-sale price is usually lower than the launchpad price, which in turn is expected to be lower than the price when the token begins to trade in the open market.
Is it advisable to Invest in Launchpad Projects?
Like investing in any other crypto, participating in token sales is also risky. For one thing, the price of the newly released coin is usually very volatile, meaning that money can be made or lost within a few minutes, hours or days, Users must weigh their risk appetite and decide what part of their crypto portfolio to allocate to participating in launchpad token sales.
How Much Can I Make from Crypto Launchpads?
Once again, the amount to be made isn’t fixed and can be up to multiple times the amount invested. One can also lose funds from investing in crypto projects, although this is unlikely if one commits to selling their allocation just after the sale is complete.