The popularity of cryptocurrencies has seen exponential growth in the past few years. It all started with bitcoin, but now, there are over 18,000 cryptocurrencies in existence (as of March 2022). This level of growth in such a short period is remarkable and has benefitted early adopters of the nascent industry.
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The rise of cryptos has also attracted a plethora of investors, leading to even more innovations in the crypto industry. These innovations are now accelerating the acceptance of cryptocurrencies and other decentralised projects.
One innovation that facilitates this acceleration and benefits would-be entrepreneurs and ardent enthusiasts is the creation of the crypto launchpad platforms. Here's what you need to know about them.
What are crypto launchpads?
Crypto launchpads, also known as crypto incubators, are platforms for finding new and innovative crypto projects.
The heart of the crypto industry is the imaginative developers/entrepreneurs and early investors. Early adopters of successful projects have benefitted the most, so it was just a matter of time before a platform would emerge to let investors find new projects.
Crypto launchpads are platforms that fulfill the function of hosting various crypto and blockchain-based projects to raise sufficient capital while also giving early access benefits to investors like token sales with reduced prices. Investing in a project in its early stages guarantees investors a cheaper cost of entry into the project before the public launch.
Projects on crypto launchpads are set up with the necessary infrastructure that provides security and transparency for project creators and investors. A project goes through a rigorous vetting process before it is put on a launchpad. And for the user's verification, launchpads use an extensive KYC (Know Your Customer) process through a third party.
Launchpads have become the new way for creators to showcase their projects to the world. As the cost of creating a launchpad is low, more and more have been popping up over the past few years. This has led to more and more projects moving towards launchpads to get exposure.
Launchpad allows founders to find dedicated communities of investors and crypto enthusiasts that can help them grow their projects in a meaningful way.
How do crypto launchpads benefit investors?
Launchpads help both investors and creators. For investors, it gives them access to ground zero of innovative new crypto projects. The most significant benefit of investing in launchpad projects is access to project tokens for a reduced price. Project tokens' price can skyrocket when it goes public, so buying them early in their life cycle can be a very fruitful investment.
Crypto launchpads are also very secure, so investors do not have to worry about scams as these crypto launchpads ensure that the founders of the projects are visible and do not disappear.