What is Binance Launchpad? What Makes Binance Launchpad So Attractive?

What is Binance Launchpad? If you’ve read the article on what IEO is, you might have noticed that Forex mentioned Binance Launchpad in that piece. But what exactly is Launchpad on Binance? How does Binance Launchpad differ from Binance Launchpool? These aspects were not covered in the previous article. Today’s article will clarify these concepts and provide detailed instructions on how to participate in Binance Launchpad.

1. WHAT IS BINANCE LAUNCHPAD?

Before diving into the details of Binance Launchpad, let’s first explore the concept of a crypto launchpad. Simply put, a crypto launchpad is a platform where cryptocurrency investors participate in an Initial Exchange Offering (IEO) of launchpad tokens. Through a crypto launchpad, investors can discover potential projects and tokens at the early stages of their development.

Binance Launchpad is an IEO platform that introduces new digital currencies, which will be listed on the Binance exchange after the IEO event concludes.

In January 2019, Binance announced for the first time that it would bring new promising cryptocurrencies to the market through its new Launchpad. Binance Launchpad projects began with the BitTorrent Token. The project successfully raised millions of dollars within minutes of its launch. It can be said that thanks to the success of this project, the term IEO (Initial Exchange Offering) became more familiar to investors and gradually gained popularity.

1.1. What Makes Binance Launchpad So Attractive?

Binance Launchpad, part of the Binance exchange, not only attracts investors but also garners interest from numerous blockchain projects. Of course, this appeal is not without reason. Binance Launchpad offers benefits to both investors and token issuers. New projects gain exposure and promotion through IEO events. When a project is launched via Binance Launchpad, it can reach millions of Binance users. For fledgling projects, this is an extremely effective marketing approach at a much lower cost compared to self-promotion.

Additionally, Binance encourages users to hold BNB as a prerequisite to participate in IEOs, further increasing the platform’s attractiveness.

Even investors participating in Binance Launchpad enjoy extremely attractive benefits. Tokens introduced via Binance Launchpad provide investors with a certain level of trust in the projects, thanks to Binance’s thorough research and rigorous vetting process. To date, most Binance Launchpad projects have offered opportunities for substantial returns. For instance, investors who purchased MATIC in early 2019 could see profits of up to 200%.

1.2. Stages of Binance Launchpad

Binance Launchpad is divided into four stages, with Binance periodically introducing cryptocurrency launchpad token projects. The stages include:

– Preparation Stage: In addition to having a Binance account (KYC verified), you also need to hold BNB in any wallet within the Binance exchange for a specific period. Typically, Binance calculates the average BNB balance over 7 days. The average BNB balance during this period determines the maximum amount of BNB you can commit to the Binance Launchpad event.

– Registration Stage: The registration period lasts for a few hours. By registering, you are committing your BNB for the token sale event.

– Calculation Stage: Binance calculates the number of tokens each participant can receive based on the following formula:

To ensure fairness, a token allocation limit is applied to each user. This limit represents the maximum number of tokens a user can receive and may differ from the maximum amount of BNB you can commit.

Once the official number of tokens for each participant is determined, the BNB you committed will be deducted proportionally based on the value of the tokens.

– Distribution Stage: In this final stage, Binance automatically distributes the Launchpad tokens to your Spot Wallet.

2. COMPARISON OF BINANCE LAUNCHPAD AND BINANCE LAUNCHPOOL

In addition to Binance Launchpad, Binance also introduced Binance Launchpool, another popular feature among Binance users. So, what’s the difference between Binance Launchpool and Binance Launchpad? Before diving into their differences, let’s first understand what Binance Launchpool is.

2.1. What is Binance Launchpool?

More than a year after the launch of Binance Launchpad, Binance introduced Binance Launchpool in September 2020. This platform allows investors to earn rewards by staking altcoins like BNB or BUSD.

2.2. Differences Between Binance Launchpad and Binance Launchpool

It can be said that while Binance Launchpad leads the IEO trend, Binance Launchpool provides a simpler way for investors to easily access DeFi. This is the most prominent difference between the two features.

As of mid-2021, according to Binance’s calculations and reports, the two programs—Binance Launchpool and Binance Launchpad—successfully raised $143 million for various projects. Importantly, both programs have no hidden fees, and all project details are thoroughly vetted and transparently disclosed. Thanks to these programs, projects can raise significant capital in a short amount of time, while investors can engage with projects from the early stages and benefit from highly attractive profit opportunities.

Thanks to these programs, projects can raise substantial funds in a short time, while investors can engage with projects in their early stages and enjoy highly attractive profit opportunities.

One of the recent Binance Launchpad projects is Voxies, with the VOXEL token sold at a price of 0.00037894 BNB, equivalent to nearly 0.2 USDT. After being listed on the exchange, the token reached a peak price of 6.9500 USDT, which is more than 30 times its initial price. It’s clear that participants in the Voxies Launchpad token sale made significant profits.

3. HOW TO PARTICIPATE IN BINANCE LAUNCHPAD

For Binance users who want to participate in IEO events, the process and way to engage in Binance Launchpad is quite simple. Here’s a step-by-step guide for newcomers to Binance:

First, if you don’t have a Binance account, visit the Binance homepage -> Click “Register Now” or “Register”.

Next, fill in your personal information such as email and phone number. Binance will send a confirmation email and a verification code to your phone.

If you already have a Binance account, simply log in. Please note that in order to participate in Binance Launchpad, your Binance account must be KYC (Know Your Customer) verified.

Next, go to the “Earn” section. There, you will see both Binance Launchpad and Binance Launchpool.

At this point, you will be able to see a number of highlighted projects. On each project’s image, you will find a tag indicating the current stage of that project.

As shown in the image, the “Alpine F1® Team Fan Token” project is in the Preparation Period. Scroll down to find more detailed information about the project, such as social media channels, total token supply, token distribution time, public sale price, and more.

After the preparation period ends, the registration phase begins. Go to the project page and commit your BNB. At this point, the page will display the BNB limit that you can commit. Enter the amount of BNB in the “Amount” field and click “Commit Now”. After this point, the BNB you committed will be temporarily locked until the distribution phase.

4. SUMMARY

Today’s article covered the basics, such as what Binance Launchpad is, what Binance Launchpool is, compared the two features, and provided a guide for new users on how to participate in Launchpad projects on Binance.

As of now, Binance Launchpad remains the leading platform for participating in IEOs, attracting many investors and blockchain projects due to the benefits it offers. However, this does not mean that Binance Launchpad projects are risk-free. Therefore, always exercise caution and conduct thorough research before participating.