What is a launchpad?

Think of a pre-order platform for a product that hasn’t launched yet: the team presents its plan, and interested people sign up or put in money. A crypto launchpad works in a similar way, except that what’s on offer is usually tokens or NFTs, not an item that will arrive at your door.

The platform runs the process: it presents the project, announces the terms, accepts participants and decides how the available tokens are distributed. It may belong to a centralized exchange or run on smart contracts. For NFTs, it may provide the tools for minting and initially selling a collection.

The rules vary. Some launchpads require identity verification (KYC), a spot on a whitelist of approved participants, or holding their own token. Others use a lottery or a priority queue. Signing up doesn’t always guarantee an allocation, meaning the right to get a share of the available tokens.

Why it matters

For a new team, a launchpad offers access to an audience and tools for selling its token. For users, it brings together information and processes they would otherwise have to look for separately.

If, for example, a project sells tokens through a launchpad, it may deliver part of them at the start and the rest gradually. This gradual release schedule is called vesting. So the amount shown as your allocation isn’t necessarily all available right away to transfer or sell.

What to watch out for

Being on a launchpad is no guarantee of trustworthiness or returns. Even if the platform vets the teams it hosts, the project may fail, the token may lose value, or there may not be enough buyers when you want to sell.

We separate vetting the platform from vetting the project itself. We look at who receives the money, what rights the token gives, when it unlocks and what fees apply. We also check the website’s address: a fake launchpad page can ask your wallet for dangerous approvals. You never need your seed phrase to take part.