Launchpad vs. Launchpool: Which One Drives More Crypto Growth?
Binance has built an entire ecosystem of services that tailor to the needs of just about any cryptocurrency trader, user, or holder. If you’ve been using Binance for a while now, chances are high that you’ve come across both Binance Launchpad and Binance Launchpool. Both platforms aim to support the crypto ecosystem by offering first-look access to promising crypto tokens to all of the Binance users. The platforms also provide support for promising crypto startups with the eventual goal of helping drive awareness and adoption for their respective projects, by guiding them on how to best launch and advertise their tokens.
In other words, both Binance Launchpad and Launchpool help quality projects fundraise, while also allowing crypto users and investors to generate great returns. But how exactly do they differ, and what makes one more valuable to you specifically when compared to the other?
Launchpad and Launchpool: Delivering Growth to Crypto Holders
On the surface, both Binance Launchpad and Launchpool deliver on their goals of delivering growth to crypto projects, their respective tokens, and the Binance users who gain access to them. The two platforms combined have distributed $143 million in total tokens to both buyers on Launchpad and crypto farmers on Launchpool. Right now, those tokens are worth $934 million in total.
Binance Launchpad, the older of the two platforms with projects dating back to 2019, has sold a total of $57.8 million in tokens across 23 projects. Right now, the total value of those tokens are at $725.2 million, showcasing an aggregate 11.5x growth in value to participants who are able to purchase tokens on the platform. This year, Launchpad was able to secure commitments worth a total of 38.2 million BNB ($10 billion) from interested participants, which represents how highly anticipated the token launches are.
Binance Launchpool, which was introduced in September 2020, currently features 19 projects, two of which have ongoing farming periods. The platform was able to distribute a total of $85.3 million in tokens from 17 completed projects. Those tokens are now worth $209.8 million, 146.04% higher on the aggregate, even considering the downturn trends of the past two months for crypto. The farming pools have recorded a TVL (total value locked) of $5.46 billion in BUSD, 143.5 million BNB, and a significant amount of cryptocurrencies including BTC, ETH, DOT, and several others.
While similar in results, Launchpad and Launchpool operate in different ways. We explain these differences below.
Binance Launchpad: Pioneering Crypto Crowdfunding
Binance pioneered the Initial Exchange Offering (IEO), through its introduction of Binance Launchpad, the exclusive token launch platform for transformative blockchain projects. With the dawn of the IEO, crowdfunding enters a whole new level with the safe and easy use of cryptocurrencies to benefit both blockchain projects and their investors.
Before Launchpad, blockchain projects staged their own Initial Coin Offerings (ICOs) to raise crypto funds for their own growth and development. Results have varied under this old approach, with each success story being matched by cautionary tales of failures and frauds, and crypto users lack necessary protections and were left on their own.
The introduction of IEOs on Binance Launchpad spurred a new paradigm under which projects can raise funds and users can support these projects in a more convenient and safer way. Here are the various advantages that Binance Launchpad was able to offer to the entire crypto industry:
1. Token launches within a trusted platform
Binance Launchpad provides a way through which new crypto projects can raise capital from a platform that is already used by most of the crypto world. As the world’s leading exchange, Binance already has access to crypto holders and investors, who are likely to be interested in gaining early access to high quality token sales.
2. Protections for both users and projects
Binance takes care of its crypto users with top-notch security, and this extends to token sales. By using Binance Launchpad, crypto projects don’t have to worry about creating their own fundraising platform and risk being a target for attacks from bad actors. Meanwhile, investors don’t have to worry about taking out their funds from Binance, which is where they are mainly using their crypto assets anyway, and risking unnecessary losses.
3. Fast-track growth for deserving crypto projects
When projects get featured on Binance Launchpad, they essentially get exposure to millions of Binance users across the globe, and the projects that are launched through it will be listed and have world-class liquidity alongside multiple trading pairs.
Launchpad is an important part of Binance’s holistic support when it comes to supporting blockchain startups. When a crypto project qualifies for a token offering on Launchpad, it is essentially getting support from Binance for the initial issuance of its tokens, as well as guidance from Binance’s listing and investment teams, which evaluate and assess each project that applies for Launchpad.
4. Equitable distribution of initial tokens offered
Binance Launchpad uses a lottery system for its token distribution. Once a new IEO is announced, a snapshot is taken of potential investors’ BNB holdings over a set period that varies according to the sale. After the BNB holding period, a claim ticket button will appear for 24 hours to users which need to confirm their lottery tickets, after which the lottery will start and the winners will automatically allow users to become participants of the IEO in exchange for BNB tokens. How many tokens investors can keep depends on how much was committed overall, and is subject to individual caps.
We employ this lottery system for Launchpad to ensure that the tokens initially offered are able to reach as many people as reasonably possible. There is no need to worry about a few crypto holders owning a majority of the circulating supply, which bodes well for a crypto project’s prospects.
5. Potential long-term success for both projects and crypto holders
Since its launch, Binance Launchpad has raised a total of $57.8 million in funds for 23 completed projects, thanks to the participation of 1,498,542 all-time unique participants. While results can vary from token to token, Launchpad has generally helped jump-start projects with considerable success. Combined with the continued hard work of the crypto projects that are featured on Launchpad, the IEO model has delivered great results, as shown in the performance of some of the best-performing projects to date.
Top-Performing Launchpad Tokens (as of June 25)
You can learn how to use the Binance Launchpad here.
Binance Launchpool: DeFi-Powered Evolution of Crowdfunding
There comes a point in time where you might want your crypto assets to do the work for you. In other words, instead of just leaving the assets to stagnate into your crypto wallet, as they slowly rise or fall in value depending on the market situation, you can use these assets to earn new tokens while safekeeping them in the process.
Binance Launchpool was created in September 2020, during the rise of decentralized finance (DeFi) in crypto, when new crypto-financial services allowed users to stake their crypto assets to provide funds into a liquidity pool and get rewards in return. This is a process known as yield farming. By combining the best practices of DeFi with the security and convenience of a centralized exchange like Binance, Launchpool essentially allows users to farm new assets and users will be able to acquire new token rewards in return for staking BNB, BUSD, and other tokens, at no cost. Unlike Launchpad, which is essentially a token purchase action on the side of the crypto holder, Launchpool allows holders to have their cake and eat it too.
Here are some of the benefits of Binance Launchpool:
1. Simple mechanics for earning free tokens
With Binance Launchpool, the process of earning new tokens is as easy as just depositing them into a pool of funds. The number of tokens you earn on a daily basis will be proportional to the number of tokens you have subscribed to the pool when compared to the total number of tokens that are submitted to the pool itself. You will typically earn a new token over a pre-set period, typically within 30 days. The trading of the token is open after the 7th day of farming, at which point you can immediately trade any tokens that you have earned throughout that time frame. In order to participate in the Launchpool, you need a Binance.com account as well as more than 0.1 BNB or any other token that is supported within a pool.
2. Flexibility in earning new tokens and controlling your existing assets
The tokens you will inevitably earn from Binance Launchpad are calculated on an hourly basis, and you can harvest your pending rewards at any time. In other words, Launchpool is where you can stake tokens to farm new tokens, you would typically be getting back what you staked at the end of it, and you will also have the opportunity to unstake your pooled funds at any time.
3. Binance’s support for promising crypto projects
Just like in Launchpad, projects that are featured on Launchpool gain access to Binance’s top-notch support system, from advisory services on how and when to offer tokens to the extensive community and marketing reach that Binance is able to employ to spread the word about the crypto project being featured.
4. Growth for projects and holders alike
With these various advantages, Binance Launchpool projects were able to grow their valuations, as well as the benefits they provide to their backers, in effect creating stronger communities and fundamentals for the projects. How much growth are we talking about? For some of the top-performing tokens on Launchpool, we’re talking about as much as 44x growth for tokens that are essentially given away for free.
Top-Performing Launchpool Tokens (as of June 25)
Learn more about the benefits of Binance Launchpool in this article.
The Bottom Line
We can clearly see that there is a high interest from the Binance user base when it comes to the projects on the Binance Launchpad, and a lot of them are also engaging in Launchpool. This is one of the main points of attraction when it comes to launching your crypto projects on these platforms.