What is Binance Launchpad?
Binance Launchpad is a platform that supports IEOs – Initial Exchange Offerings – launching tokens on exchanges like Binance. Accordingly, projects can raise funds and users contribute capital to invest in projects more easily and safely.
How does Launchpad work?
Investing through Launchpad is quite easy because most projects have been pre-screened for potential and security. Investors must lock the cryptocurrency for at least 7 days, and are not allowed to withdraw tokens. After that, Binance will list the project tokens on the spot market so that investors can freely choose to trade.
Accordingly, the more BNB you hold, the more lottery tickets you can claim to buy tokens in the IEO.
To get lottery tickets, you need to have a certain amount of crypto for about 20 days. After the registration period, a Claim ticket button will appear on the system within 24 hours for you to confirm. The winner will attend the IEO Launchpad Event.
Once the IEO event ends, Binance will automatically allocate the new tokens you receive. The total number of coins depends on two factors: how many tickets are claimed and the total amount of crypto invested through the IEO. This is the remarkable success of Binance Launchpad during the three years since 2019.
Advantages of Launchpad
Clearly, Launchpad has brought many benefits to projects, the most important of which is the ability to reach Binance's huge customer base.
Another benefit is that Launchpad supports effective marketing strategies for projects. Those who follow Binance can know exactly when a new project is raising capital. All information is mentioned on Binance's website and social networking sites.
In addition, when the project is launched, the token will be listed on the spot market with many trading pairs. And being on Binance's Launchpad is a guarantee of the project's reliability.
What is Binance Launchpool?
Binance Launchpool was introduced in September 2020, as a passive and secure monetization feature for investors by staking Binance Coin (BNB), Binance USD (BUSD) or other tokens (based on requirements). demand of each project) into the liquidity pool. From there, you will receive a completely free amount of new tokens, then these tokens will be listed on the exchange to help launchpool participants earn a profit.
What is the reward mechanism on Launchpool?
Launchpool will measure rewards every hour from the moment you stake your tokens. The total number of tokens stored depends on the total number of staking tokens, the APR – Annual Percentage Rate and the total amount of crypto committed to the pool by you and other investors.
After 7 days of farming for the new project, Binance will list the token on the market. At this point you can trade tokens as usual.
How to use Launchpool?
To get cash from farming through Binance Launchpool, you need a Binance account. Then you log in and go to the Launchpool page. From here, select the pool you want to stake, enter the number of tokens and press “Stake”. Very simple.
You need at least 0.1 tokens to farm. If using BNB, these tokens will still count towards Launchpad lottery tickets and Airdrops.
Advantages of Launchpool
Similar to Launchpad, projects in Launchpool receive great support from Binance, including: consulting, marketing, and outreach to the investor community.
Based on the project tokens, Binance will create trading pairs on the spot market, allowing those with Binance accounts to trade.
Should join Binance Launchpad or Binance Launchpool
The choice of these two forms depends on many factors, including:
Investment goals
When deciding between Binance Launchpad and Launchpool, users should think about their investment goals. Launchpad is for those who are placing their trust in groundbreaking and potentially highly profitable projects. Launchpool is suitable for those interested in making profits through staking and supporting project liquidity.
Ability to accept risks
It is necessary to evaluate in advance your risk tolerance and priority when participating. Investments in Launchpad are higher risk due to the nature of early-stage projects. On the contrary, Launchpool is suitable for risk-averse investors as the participation mechanism (explained above) does not require spending a sum of BNB.
Diversification and portfolio
Consider whether the platform is right for your portfolio. Portfolio diversification is important to minimize risk. You can allocate capital to Launchpad and Launchpool accordingly based on your initial strategy.