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What are Launchpad Tokens?
Launchpad tokens are a category of cryptocurrencies that emerged in 2021. They are a formula created for pre-sales, which is the final stage of Initial Coin Offerings (ICO), and are designed to promote new projects. Launchpad tokens can also serve as sponsors for the promotion of new projects. In decentralized environments, these are referred to as Initial Dex Offerings (IDO).
Launchpad projects are being developed in various blockchain ecosystems. The largest networks include ETH, BNB, AVAX, SOL, DOT, and a few others. During bull markets, the number of projects that turn out to be scams typically rises. People who hold launchpad tokens have early access to new coins, and due to market demand, these coins may increase in value very quickly.
Centralized cryptocurrency exchanges also use their tokens for the same purpose. It is now rare to find a centralized exchange that does not have its token. This is a highly profitable business model for exchanges since they can use their bots to manipulate the market and artificially inflate or deflate the value of a new token. The numbers we see on the exchange screen can be an illusion. The massive increase in value that we see in the first few seconds of a new token’s listing is due to this practice. In reality, no trades have been made at those prices.
Should I Buy Launchpad Tokens?
If you have decided to invest in cryptocurrencies, I strongly recommend that you consider launchpad tokens, as they can generate significant profits if you take a position at the right time. However, they also carry substantial risks, and it is possible to lose all of your investment. Keep in mind that almost all new cryptocurrency projects that appear on these sites are scams.
There is no rule that says the price of a scam project will not rise. With a good marketing campaign, it is possible to increase the value of anything in the world by 1000 times. Nothing can stop the hype or FOMO. People’s psychological makeup makes them susceptible to this. Everyone will buy because the price keeps going up without asking questions. Before investing, you should answer questions such as: When did I buy it? How much did I risk? What are my expectations? When will I take profit?
When Should I Buy Launchpad Tokens?
In the cryptocurrency market, the most important thing to remember is its cyclicality. There is an order in which all categories come into play. The signal for the bull market is the rise of Bitcoin. Then come to the Layer 1 blockchain projects such as ETH, BNB, SOL, etc. Other categories follow one another depending on the flow of money. The latest stage in this cycle, along with meme coins, is launchpad tokens.
The biggest reason for this is as follows: When smart money enters the market, it starts with the most solid coin. When it makes a profit, it shifts towards less risky options. Then, when smart investors make enough profit, they turn to meme coins with higher risk appetites. This is where the madness begins. Nobody cares what they are investing in. The only thing that matters is the passion for making money, so new things are started to be told to small investors such as Metaverse and Web3. AI, for example, is the trend of the moment. However, since smart money is not in the market, AI pricing does not follow the expected pattern.
If you want to achieve the highest percentage of profit in the shortest amount of time, you should invest in Bitcoin today, and when Bitcoin enters a bull market, you should gradually allocate some capital to launchpad tokens that you have analyzed.
What are the Best DEX Crypto Launchpads?
This is a somewhat subjective question, but I will try to share with you the launchpad platforms that I know based on my own research and investments, which emerged in the previous bull market and have managed to survive until today. I will also specify which one I have invested in and why. You can check some launchpad platforms listed on coinmarketcap too. https://coinmarketcap.com/view/launchpad/
Avalaunch-Xava
This is a token that I invested in during the last crypto bull market and saw it go from an average of $2 to $20. At the time I invested, I participated in all the IDOs they launched. I believe it was managed by a professional team. However, during the bear market, it experienced a very sharp drop of around 99%. It didn’t surprise me since small tokens like this are immediately affected by the money leaving the market due to bitcoin’s fall. I had a few xava that I staked and still have them, but they’re currently at garbage levels, so I’m not thinking of selling them. And don’t worry, I made enough money from those sales 🙂
I also need to mention that as far as I know, there are no other launchpad tokens on the Avalanche network except Avalaunch itself. Most of the projects that come to this site are serious projects, but we shouldn’t forget that even if a project is serious and of high quality in the crypto market, it’s doomed to fail if it has no investors. They are all like a group of pyramid scheme projects. The important thing is to analyze the risks knowing these realities.
BlueZilla
I currently have no investments in this project. I invested significant amounts of money in the past and both gained and lost. I believe they have a competent team who knows what they’re doing, and it’s likely they’ll attract attention again when the bull market returns. It’s important to remember that the projects you invest in are risky, and investing here is like being at a gambling table. You can earn a lot or lose everything. My personal opinion is that you can consider investing when the market becomes a bit more active, but I’m not considering investing at the moment.
Seedify
A platform that can offer the best projects in the Launchpad token market to its investors. The fact that even the best projects are risky does not change, but the infrastructure of the project is important.
Other IDO Platforms
I know and have invested and traded in sites like Bullperks, oxbull, and gamefi in the past. However, since I made short-term investments, I cannot write anything detailed about them.
Importance Of Vesting?
All tokens sold on Launchpad platforms will have a certain vesting period. We call it vesting when tokens purchased are sold in installments. In most cases, you won’t be able to sell all the tokens you bought on the first day. If market conditions are not favorable, 99.9% of these tokens will drop instantly. When you want to sell the installments you receive, there is a high probability that you will see the price has fallen below what you already paid.
CEX Launchpad Platforms
The most reliable, easy, and therefore low-yield launchpad platforms are CEXs. These tokens, which have the power of the exchange behind them, can be staked and you can earn the right to receive new tokens, just like DEX platforms. For example, with Binance Launchpad, you can get early access to many solid coins. Coins like AXS or Matic have achieved incredible increases of 500-1000x. Even if you didn’t buy them through Launchpad, they still provided very good profit opportunities. In fact, one of the questions we need to ask ourselves is this: Instead of buying BNB to purchase coins through Launchpad, should we just buy these coins directly? What do you think is more logical? I would appreciate your comments.
Conclusion
If we are not in a bull market, these types of platforms will only take your money. You have to try your luck in a very limited time frame. You can try to invest an amount of money that you will not be upset if you lose. We can use our short-term funds to increase our bitcoin, which is the only real cryptocurrency. When we consider where bitcoin potentially will rise, the market will have a tendency to invest in necessary and unnecessary places again. For risk-takers, these launchpad platforms are a priceless opportunity.
Disclaimer: I have no connection with the tokens and projects that I evaluated above. These are purely subjective assessments. Please conduct your own research.