Two Roads to Web3 Adoption 2024
Launchpads and launch pools are both excellent options for blockchain startups looking to conduct token offerings and decentralized funding. As a project founder, it’s crucial to understand the differences between launchpads and launch pools so that you can leverage both scenarios effectively.
Launchpads vs. launch pools
There are indeed many similarities between launchpads and launch pools. Much like launchpads, launch pools carefully select promising up-and-coming projects that exhibit a strong team and growth trajectory. Both launchpads and launch pools typically vet potential projects before allowing them to participate, ensuring a level of credibility and quality assurance. Additionally, they often require investors to complete Know Your Customer (KYC) processes to comply with regulatory standards and ensure security for participants.
This is where the different platforms start to diverge. Launch pools take some of the best aspects of crypto launchpads and make them more scalable and easy to use. While launchpads typically spotlight one project at a time, launch pools have the capability to host several launches simultaneously. This scalability allows users to participate in multiple projects concurrently, potentially gaining exposure to a more diverse range of new tokens.
Additionally, launch pools often have lower minimum investment requirements compared to launchpads, which democratizes access and allows a broader audience to participate in token offerings.
There are also key differences in how launchpads and launch pools distribute public sale tokens. While launchpads may focus on lottery sales with tier-based ticket allocations, launch pools offer alternative mechanisms such as direct access through staking. This flexibility in distribution methods can cater to different investor preferences and strategies, enhancing the overall appeal and accessibility of token launches in the blockchain ecosystem.
Key advantages of launch pools
Why do platforms offer both launchpads and launch pools? Let’s take a look at three reasons why launch pools have emerged as a viable alternative to launchpads.
Lower barriers to entry
Launch pools typically reduce entry barriers for both projects and investors. For projects, it’s generally more straightforward to get hosted on a launch pool than a launchpad. For investors, launch pools only require users to start staking in the pool or complete a simple procedure like whitelisting or qualifying for staking snapshots, similar to launchpads. Launch pools also often have lower minimum investment requirements, which enables more entry-level investors to participate in the action.
More opportunities for growth
Launch pools enable a single platform to host multiple launches simultaneously, providing investors with early access to a diverse array of emerging projects and opportunities to diversify their portfolios with new tokens at advantageous entry points. This setup also offers new users a valuable opportunity to conduct their own research and due diligence on each project within the launch pool, evaluating which ones to support. Moreover, hosting multiple launches enhances the platform’s capability to conduct public sales, offering additional opportunities to engage with the community and attract investment.
Less so for project founders, launch pools offer reduced post-launch uncertainty. Furthermore, launch pools are less reliant on chance, leveraging the stability and structure of liquidity pools.
Liquidity pools are a key component of DeFi, and many launch pools adopt this structure instead of the lottery format used by most launchpads. While lotteries can be thrilling, this aspect may deter investors seeking to minimize risk and uncertainty. Some launch pools even enable users to retain their initial investment and earn additional tokens as a bonus, appealing particularly to smaller investors aiming to maintain their current assets.
How to navigate your launch successfully
Here’s a refined version of your paragraph:
“While launchpads have historically garnered more attention, launch pools represent a valuable tool for projects that may not have access to high-quality launchpads but still deserve to carve out their place in the ecosystem. Whether your startup launches on a launchpad or a launch pool, every blockchain business needs a solid strategy to maximize their public sale and ensure long-term success.”
Connect with the ecosystem
Before launching, Web3 startups should prioritize tapping into the ecosystem for incubation and support. Forming partnerships with established projects can provide valuable insights and help navigate your launch with confidence. Such collaborations not only transfer trust from the broader community to your project but also generate buzz around your token.
Put your treasury to operate
New launches offer startups a significant opportunity to maximize their resources. It’s crucial to have a strategy in place for how your project will generate passive income and manage risk during the bootstrapping phase, even before raising funds. Maintaining stable coins in your treasury can mitigate volatility, while diversifying investments and allocating capital to strategies like staking or liquidity provision can potentially enhance your project’s upside
Keep up the momentum
“After launch, it’s crucial to maintain momentum within your community. Deliver on promises promptly and provide long-term incentives aligned with your roadmap to retain supporter interest. Focus on creating compelling token utilities that generate sustainable value over time. Additionally, if you lock up tokens distributed from your public sale, ensure to provide investors with compelling reasons to remain engaged post-unlock.
Get ready for the wave that is next of
Both launchpads and launch pools are crucial tools for fostering growth in the Web3 ecosystem. These platforms are poised to play a vital role in the next wave of blockchain adoption by facilitating new use cases that bridge talented builders with enthusiastic investors. Overall, launching innovative projects remains one of the most effective strategies to accelerate Web3 growth, particularly as the bull market resumes
The information provided here is not investment, tax, or financial advice. For advice tailored to your specific situation, it’s essential to consult with a licensed professional. – Wolfgang Rucker
Wolfgang Rucker is the CEO of Istari Vision and Entity.global, specializing in Web3 startups and staking.
This article was published through CoinTelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry dedicated to shaping the future through connections, collaboration, and thought leadership. Opinions expressed here do not necessarily reflect those of CoinTelegraph.
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