What is the Role Played By Launchpads in the Blockchain and Cryptocurrency Space?
The crypto space is like a lottery for potentially successful projects as well as exit scams that lure investors and disappear with their money. A little bit of stability could go a long way in protecting investor interests while allowing upcoming projects to raise the capital they need. This happens thanks to launchpads, a kind of dedicated platform playing a very crucial role in the blockchain and cryptocurrency space.
The critical role played by launchpads cannot be overstated, in part, because of the trust they create between upcoming projects and investors.
What is a Crypto Launchpad?
Crypto launchpads are platforms designed to help new and upcoming projects raise money through various crowdfunding models and gain mainstream adoption in the shortest possible time.
Possible crowdfunding methods include initial coin offerings (ICOs), initial exchange offering (IEO), security token offering (STO), and more.
Launchpads’ ability to help new projects attract communities helps the crypto projects to have an edge in the market. The young crypto sector is very competitive and communities sometimes are all the difference between successful and failed projects.
Launchpads are more like advertising platforms that take projects from being unknown to being noticed.
What is the Role of Launchpads in Crypto?
There is no doubt that ICOs changed the way crypto startups raise funds. Traditionally, companies had to go through venture capitalists who had to decide whether an idea was worth investing in or not. Needless to say, many good projects never saw the light of day.
Secondly, investing was restricted to accredited investors, which in other words, referred to individuals with high net worth.
ICOs are a way of leveling the playing field as they allow retail investors to invest in new projects. Unfortunately, some retail investors were ripped off by ICOs that were nothing more than rug pulls.
Some other projects generally failed even though they started with good intentions.
Secondly, the projects themselves encountered several challenges such as adhering to regulatory requirements as well forking high fees for listing on exchanges.
While the crypto industry was flourishing, both investors and crypto projects were disadvantaged.
It is for this reason that launchpads were created: to lower the burden of investors and upcoming crypto projects.
How then do launchpads address these challenges?
Launchpads vet new and upcoming projects and only list those they think are good, honest, and primed for success. In short, they do due diligence on behalf of investors.
This is good news for retail investors as they know that vetted projects have a higher chance of success. However, it is always recommended to do your own research before you invest in a token or project.
Secondly, launchpads are good for new projects as they eliminate or minimize the barrier to entry. Launchpads create a community that goes a long way in making sure that new projects have a shot at succeeding. Crypto projects are mainly driven by communities.
New projects need to focus on developing their idea while the launchpad takes care of matters such as exchange listing and regulatory compliance.
The nascent cryptocurrency market is community-driven, and projects with a huge and loyal following have better chances of succeeding. Launchpads play a crucial role in building communities for new projects.
In doing so, launchpads help to protect the interest of both investors and new projects. This is a welcome development as it benefits all the stakeholders involved.
Are you an investor looking for a worthwhile project to invest in? Are you developing a new project and wondering how you can build your community? Visit Whalemaker launchpad and make your crypto journey as enjoyable as possible.