DECODING THE LAUNCHPAD GAME: A GUIDE FOR NEWBIES

Thinking about diving into the launchpad game? Before you take the plunge, let me share some insights. In the recent crypto bull run of 2021, launchpads stole the spotlight. They act as incubators for crypto projects, offering early investment opportunities.

Projects go through seed fund rounds, private rounds, and finally, public rounds. Each round has different prices, with seed funders getting the best deal. When a project launches on a launchpad, it's called an Initial Dex Offering (IDO), similar to IPOs in the stock market.


Most launchpads focus on public rounds, where early investors can grab their allocations. If you secure a $100 allocation at a launchpad for a promising project with a public round price of $0.10 per token, you get 1000 tokens. If the project performs well, your initial $100 could turn into a substantial profit. During the 2021 bull run, some projects experienced unprecedented growth, with several surpassing the remarkable milestone of 100 times their initial value—sounds enticing, right? But wait, there's more to the story.

HOW DO THEY WORK?

To participate in an IDO, you typically need to buy the launchpad's own token and stake it. While some launchpads offer opportunities without a significant investment, it usually involves active participation in campaigns. You will need to follow their socials and take part in their endless retweeting campaigns and hopefully you will be lucky enough to get a minimal allocation because in the end the results are determined mostly by a lottery and your chances are real slim, if you are not an influencer with thousands of followers.


For guaranteed allocations, the staking route is the way to go, using non-custodial wallets like MetaMask or Rabby. So, you will need some knowledge about how to use extension wallets for staking and sometimes bridging. Here's an updated tutorial if you are not familiar with Metamask or other extension wallets.

Most of the launchpads has a tier system. The more you pay, the more allocation you get. Once staked, those platforms offer you yields based on the lock duration you chose.

CHOOSING A LAUNCHPAD

Choosing your launchpad is crucial. If you're new, opt for one with a proven track record, but be prepared for a financial barrier. The entry cost for the lowest tier can range from $1000 to $2000 for platforms with high returns. If that's not feasible, explore launchpads with lower market caps, as projects often launch on multiple platforms.

THE IDO PROCESS

The fundamental principle is similar across most launchpads but may have slight variations. Once you've staked your tokens and become a launchpad investor, you gain the opportunity to participate in IDOs on that platform. Keep an eye on the launchpad's social media and website for upcoming IDO schedules.


A recent trend is to register for an IDO on the launchpad's website to express interest in the project, even if you've already staked your tokens. In this scenario, be sure not to overlook the registration deadline, or you might miss your chance to purchase the allocated tokens.

TGE and VESTING

TGE, or Token Generation Event, denotes the moment when the token becomes available for trading on a DEX or CEX, specifying the date and time.


Now, if you're not acquainted with VESTING, it refers to the distribution schedule of your allocated tokens after an IDO concludes. Typically, the vesting schedule is presented as follows:

• 20% on TGE, one-month cliff, 6 months linear vesting.

In simpler terms, this implies that you receive 20% of your tokens on TGE, experience a one-month cliff without any token distribution, and then continue to receive your tokens in six equal portions over the subsequent months.

FINAL NOTES

• Being an early adopter of a launchpad token can yield substantial rewards. However, it's important to note that you don't have to jump into every new launchpad that emerges suddenly. The market is competitive, with its own dynamics, and achieving success isn't easy. It's crucial to scrutinize the team behind the platform and their ability to secure promising projects.

• The prime time to be a launchpad investor is during the early stages of an uptrending market, much like the current scenario. As the launchpad season unfolds, you can anticipate significant gains, with these tokens potentially experiencing 5x-10x increases. Keep in mind the locking period when staking; if you foresee a change in market trends, you wouldn't want to be locked in for too long.

• Launchpad tokens exhibit volatility and have seen drops of around 95% or even more, in a bear market, from their all-time highs. It's essential to navigate these fluctuations with a strategic approach.

If you enjoyed this thread, don't hesitate to show some love. In my upcoming blog, I'll delve into analyzing some launchpads to keep an eye on for the next bull run.

Until then, stay cool...