How does Binance’s Launchpad function? This guide will show you how to find the best bargains on the largest global exchange.
The Launchpad allows you to see many promising new cryptocurrency ventures that have been selected by Binance. Moreover, investing through Launchpad can be easy and very safe.
Launchpad requires that you block certain cryptocurrency for a specific period of time before you can invest in the project. This is usually seven days. These tokens cannot be withdrawn during this time. After the window has ended, Binance will list the project tokens on their spot market. You can exchange your tokens without restriction.
How does Binance’s Launchpad work?
During Launchpad’s 2019 first IEOs, investors could purchase as much token allocations as they wanted. This led to the whales buying all tokens and excluding smaller investors. This led to one or two wealthy users potentially controlling the majority of major cryptocurrency projects, thereby denying decentralization claims.
Binance has created a system to make token-buying more democratic to avoid this problem. Based on the last twenty days of your participations at BNB, you can claim up to five lottery tickets. The more BNB tokens that you have, the more you can claim lottery tickets and the more tokens that you can earn from IEO.
You will need to hold some cryptocurrency for a period of time in order to claim your lottery tickets. After the time has expired, a button to “request tickets”, which will be displayed for a 24-hour period during which you can confirm that you are willing, is displayed. The lottery is over and the Launchpad IEO event begins.
Binance will distribute the tokens you have just earned at the end of the IEO. Two factors determine how many lottery tickets you have applied for and how much cryptocurrency was invested by all investors through IEO. The more you invest, you will earn .
The Launchpad is a success story. It has offered investors attractive returns over the three years it has been in operation. Yahoo reports that Axie Infinity lottery tickets were worth $250,000 at one time.
Why should new projects launch their tokens through Launchpad
The Launchpad gives new companies many benefits and advantages they wouldn’t otherwise have. Easy access to Binance’s community for investors. This is no small feat.
Another benefit is a simpler marketing strategy. Binance users will be aware that every time the Exchange launches a new project, especially those on the Launchpad, its media and marketing materials are publicized throughout Binance’s entire media ecosystem, which includes social media accounts.
A project can also be listed on Binance’s spot marketplace with multiple trading pairs once it is officially launched. This can provide essential trading volume.
Let’s not forget, however, that all projects launched via Launchpad have been verified and vetted by Binance. This gives them the credibility they need to be trusted by the cryptocurrency community.
