The Evolution of Crypto Launchpads

The initial coin offering craze in 2017 took the crypto world by storm, with the swathe of exciting new projects that emerged helping to drive what was then the most epic bull run the industry had ever seen. Some of those ICOs generated staggering returns for early investors, with a small proportion, like Ethereum, Polkadot, Cardano and Filecoin rising to become blockchain heavyweights, ranking in the top 30 cryptocurrencies to this day. 

ICOs created tremendous excitement, but it quickly became apparent that this model was also broken. Hundreds of scam ICOs soon popped up, often with little more than a website, promising the world for investors, only to disappear soon after raising funds leaving investors with nothing. 

The other big problem with ICOs was access. With so much buzz and demand, it became next to impossible for regular investors to secure a slot in the most promising ICOs – often requiring connections, a sizable investment or a simple potluck. 

The Launch of Crypto Launchpads

Centralized crypto exchanges came to the rescue, introducing the idea of the Initial Exchange Offering and featuring up and coming projects on the earliest crypto launchpad platforms. To launch an IEO, teams would be required to apply for fundraising from exchanges such as Binance, Gate and Huobi, which attempted to perform some due diligence to root out the scams. 

Binance Launchpad was one of the most successful of this first generation of launchpads, providing users who held a certain amount of BNB tokens with guaranteed access to its vetted projects. However, it became less accessible over time as its popularity increased, with users required to hold significant amounts of BNB to qualify for a worthwhile allocation for new projects. 

IEOs gave way to the rise of initial DEX offerings or IDOs, based on decentralized exchange platforms such as Uniswap. IDO launchpads emerged with the promise of more distributed access to new projects. They employ novel lottery systems that give users a chance of being able to participate, with guaranteed allocations for those who hold more tokens. Depending on token holding quantity, investors are grouped under tiers that determine the access and valuations they get with investment opportunities. While lower tiers aren’t guaranteed participation, this lottery-based system ensures they will obtain a worthwhile amount of tokens if they’re one of the lucky ones. 

Besides boosting access, launchpads also aim to mitigate risks for investors by performing rigorous due diligence, audits and assessments. In addition, they’ll help to increase each project’s chances of success by providing them with access to their extensive industry connections, helping them to gain insights, advice, support and perhaps additional funding from experts and traditional investors. They also help to market the projects in order to build up their communities and user base.

As IDOs grew in popularity, so did the sheer number of crypto launchpads. On Ethereum, there are numerous launchpads to choose from, with one of the biggest being DAO Maker, which gained traction due to the success of its early projects like XCAD Network, Opulous, Orion Money, GameFi, and DeRace. On Binance Smart Chain, there are many launchpads leading the way, such as Poolz Finance, and ChainGPT, and we still continue to see new ones coming with innovative ideas as MagicSquare and Ape Terminal, while Polkadot has its Polkastarter platform, Solana has Solanium and Solana Starter, and Avalanche has Avalaunch. 

Launchpads Branch Out

With the emergence of so many competitors, IDO launchpads have begun to evolve once more to focus on specific niches within the crypto industry. Newer initiatives such as DeFi Launch and Vent Finance are laser-targeted at new projects in the decentralized finance industry, while there are others, such as BSCStation, which is more interested in up-and-coming NFT-based projects. 

There are GameFi platforms too, with the likes of Gamestarter, IQ Zone and Enjinstarter all playing host to “initial game offerings”, play-to-earn games and related projects in that specific segment of the crypto industry. 

In more recent times, the latest bull run in crypto has coincided with growing interest in the original cryptocurrency, Bitcoin. Projects such as Stacks, Mintlayer and Merlin Chain are dedicated to the rise of Bitcoin-native DeFi, games, NFTs and so on that take advantage of the Taproot upgrade. These sophisticated Layer-2 networks and sidechains bring smart contract capabilities to Bitcoin to make it more like Ethereum, expanding the utility of BTC and creating new opportunities for token holders. 

As expected, Bitcoin now has its own dedicated launchpads, with Merlin Starter and KoiPond standing out as pioneers in the fast-growing realm of BRC-20 launchpads. Merlin Starter has proven to be incredibly successful as the first launchpad on Merlin Chain, which launched its mainnet in February 2024 and accumulated more than $1.3 billion in total value locked within three months. Merlin Chain aims to become the number one accelerator platform for BTC L2 projects and has already seen more than one million wallets sign up to participate in its offerings. 

A Powerful Force For Crypto Growth

Today, crypto launchpads have become a critical component of the Web3 industry, providing the essential infrastructure for entrepreneurs to secure the funding they need to bring their ideas to reality while increasing accessibility and participation for investors and enhancing community engagement. 

By filtering out the scams and promoting legitimate projects, launchpads provide investors with greater security. They lower the risk for investors, including retail investors who get to access opportunities that were previously only available to institutional financial organizations and venture capitalists. 

As launchpads have evolved, they have also come to provide extensive support to projects, giving them access to technical expertise, helping with marketing, facilitating access to more investors and assistance in growing their communities. Investors can find specific launchpads for the industry segments that most interest them, whether that’s DeFi, gaming or Bitcoin-based projects. 

Crypto launchpads have the effect of making investment easier, safer and more accessible, and have become a powerful force in helping the broader Web3 industry to grow.