Binance Launchpool: Boosting Crypto Projects & Holders Alike
Six months have passed since the Binance Launchpool launched in September 2020. Since then, Launchpool launched 15 successful crypto projects, recorded $4.64 billion in total value locked (TVL), and distributed $529 million in tokens to 408,783 crypto holders, who have since watched their holdings bloom with the recent rise of the crypto market.
Binance Launchpool has created significant value for cryptocurrency communities, projects, and markets. In this article, we’ll explore the overall impact of Binance Launchpool on the crypto industry.
How Binance Launchpool Creates Value
Binance Launchpool helps quality projects distribute their tokens to a wider audience while allowing crypto users and investors to generate attractive returns in a form of new tokens. It is a complex solution that offers advantages to both users and emerging cryptocurrency projects.
Binance always focuses on providing added value to users and communities, while helping the ecosystem grow sustainably, driving the growth of projects in DeFi protocols, and empowering the industry and markets. Launchpool creates values and liquidity in the locked funds in an innovative way, supporting redemption at any time, and bringing flexibility and freedom to investors, users, and communities.
So far, the average project on Binance Launchpool (from 2020 to 2021) provides 24% APY (annualized percentage yields) for these participants, with the highest yields recorded at 113% APY in the case of the CHZ pool for the fan token PSG. This translates to $126.96 million in additional value across all projects, assuming that each project maintains the average APY rate for a full year.
How do projects manage to record this level of growth? When crypto projects choose to offer their tokens via Binance Launchpool, they get the following benefits:
Access to Binance’s marketing resources, listing support, and passionate community members.
Connections to projects, products, and services in the Binance ecosystem. We encourage collaboration and shared goals.
Accelerated token adoption and increased asset liquidity by associating with the Binance ecosystem.
Lower barriers to entry and equal opportunities to invest in potential DeFi protocols for Launchpool users, which will then comprise a significant segment of the new project’s user base.
Added credibility by going through Binance review and listing selection criteria.
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 86x growth for tokens that are essentially given away for free.
Top-Performing Launchpool Tokens (as of March 3)
Expanding this approach to all the other projects on Binance Launchpool, we get a clearer picture of how much value was created in just six months.
Total Value of Launchpool Tokens (as of March 3)
(For the purposed of the tables above, “launch” means a token’s debut on the Binance exchange.)
Based on the data we gathered, Binance Launchpool projects have collectively delivered 682.53% growth to the value of all tokens distributed on Launchpool.
Here are some other notes on the gains that some of the Launchpool projects provided to the platform’s users:
FLM gave added value back to Launchpool participants, with up to 41% APY in the BNB pool and 21% APY by staking in the BUSD pool.
XVS returned APYs of 27% and 89% for users who staked BNB and SXP, respectively.
BTCST recorded $1 billion in total value locked (TVL) from its token offering across three token pools: BNB, BUSD, and BTC. This exceeds the $900 million in all-time-high TVL recorded across six token offerings by the end of 2020.
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Growing Everyone by Pooling Together
Token staking on Binance Launchpool brings added value back to holders, as well as an opportunity for accelerated growth for crypto projects. Here are some of the testimonials by leaders of the many projects that have debuted on Binance Launchpool.
1. Denko Mancheski, CEO of Reef: “Being part of Binance Launchpool is as close as it gets to time compression! The growth and adoption that we experienced are on an unparalleled scale.”
2. Hanwen Cheng, CEO of Litentry: “The support we received from Binance Launchpool is unparalleled. We have unlocked great value that goes beyond traditional bootstrap, and we saw the profound, invisible, long-term impact that the BSC ecosystem has on us.”
3. Alex Dreyfus, CEO of Chiliz: “Launchpool has been a game-changer, in a literal way, for us and for the Fan Token framework we are building. There is not bigger crypto ecosystem than Binance in the world and because sports and especially football is a global game, the power of Binance Launchpool is unprecedented, yet we are at the early stage. We believe that Launchpool helped to promote our product to a massive user base that we didn’t have access to before, and therefore this is a win-win for the whole ecosystem."
Binance Launchpool also benefits the projects behind the tokens that are used to stake on the platform. The TVL on Binance Launchpool reached $4.64 billion*, including 142,856 BETH worth $210.57 million* and 21,686,707 DOT worth $715.66 million.*
(These tokens are distributed across token pools for Litentry and DODO as of March 3, and some amounts may be reallocated to newer Launchpool projects or other purposes.)
Ultimately, Binance Launchpool has contributed greatly to Binance’s overall vision of spreading the freedom of money to everyone. How much value has Binance Launchpool generated? The platform has generated $529 million* in earnings to users. A total of 408,783 participants have gained these tokens from across 15 listed projects, which provided varying degrees of benefits to their supporters on Launchpool, such as:
Exposure to many promising blockchain projects and their tokens.
Added utility to the tokens they already hold on Binance.
Added earnings from gaining and then trading the tokens they get from Launchpool.
With billions of dollars in TVL and millions of dollars in distributions just six months after launch, Binance Launchpool is shaping up to be a mover in the world of cryptocurrency markets and project launches. All of this is happening on Launchpool, as it continues to provide wins for new projects and their supporters, as well as cryptocurrency holders and the market in general. We look forward to seeing more projects that will effect lasting change to the crypto industry.
*Dollar values as of March 3.
Updated on July 27, 2022.