Exploring Binance Launchpad and Launchpool: Understanding the key difference and features cover

Exploring Binance Launchpad and Launchpool: Understanding the key difference and features

Published Jan 02, 2024 by CryptoDiary

Binance Launchpad is a new Initial Exchange Offering (IEO) platform that gives out tokens to users when they take part in money-raising for projects checked by Binance. The amount of tokens you get depends on how much cryptocurrency is in use. The number of tokens you can earn depends on how much crypto was committed overall, and your rewards will be capped.

On the other hand, Binance Launchpool works as a liquidity farming service within the exchange. Through Launchpool, users earn passive revenue by staking crypto in exchange for tokens from new crypto projects. After the holding time, investors get back their first money and any extra tokens they were given. Even though Launchpad and Launchpool seem alike, there are some difference that we'll look into in our comprehensive guide from Cryptoset.gg - market’s best website for crypto newbies and experienced chads interested in Crypto AirdropsTools and Communities

Understanding Binance Launchpad

Binance Launchpad is the first place in the world to offer Initial Exchange Offerings (IEOs). IEOs involve startups getting money by selling their own tokens through an exchange like Binance. Before the launch of Launchpad, these projects mostly depended on Initial Coin Offerings (ICOs). They were known for being easily fooled and used in dishonest actions.

How Launchpad Operates:

Launchpad gives early access to great crypto projects chosen carefully by Binance. Investing in Launchpad is easy, simple and safe. Investors put some cryptocurrency for a set time, usually seven days, during this period of time these tokens are locked. When it ends, Binance puts the project's coins on its market for buying and selling which allows users to trade them easily any time they want.

In the first Launchpad IEOs of 2019, big investors (whales) could buy a project's token without limits, which made them even more powerful. To fix this, Binance started using a lottery system based on having BNB tokens. This mechanism lets investors claim up to five lottery tickets based on a snapshot of their BNB token holdings over the previous twenty days. Obviously, the more BNB tokens you hold, the more lottery tickets you can claim, and the more tokens you can earn from the IEO.

The lottery sharing happens when the holding time finishes. Once the time ends, user can claim tickets during a 24-hour period. The lottery then takes place, and the winners automatically participate in the Launchpad IEO event. Once the IEO ends, Binance automatically distributes newly accrued tokens. The number of coins investors earn depends on two factors: how many lottery tickets they claimed, and the total amount of crypto invested by all the investors through the IEO. Big money making has been seen, such as Axie Infinity's game tickets worth $250,000 at one time.

Advantages for Crypto Startups:

New crypto projects benefit a lot from working with Launchpad. It allows people to easily join Binance's large group of investors and simplifies advertising. Binance shows the projects on its website and social media, making them easier to be found. 

All the projects from Launchpool are checked and verified by Binance, which provides a decent of amount of trust from community. When the project begins, its token is added to Binance's spot market for buying and selling. This lets folks swap all kinds and makes daily trading more.

Are Launchpad Projects Successful?

In summary, yes. Launchpad has shown to be the beginning of many successful projects. Since 2019, Launchpad has helped get money and begin more than sixty crypto projects, these have become worth billions of US dollars all together.

A major example is Polygon (MATIC), which has gone up really high by almost 10,000% since it began. Its present worth in the market today is $3.2 billion now. Axi Infinity (AXS), a big winner from an old price rise, now has over $1 billion in value. Important is also BitTorrent (BTT). It sold 50 billion BTT tokens in less than 15 minutes at its beginning.

These are well-known successes, but new arrivals like STEPN - an app for fitness that pays you when you exercise and started with Launchpad's help in March 2022 saw it grow by over 450% until late June. Another great success was the game League of Kingdoms and its blockchain MMO. LOKA's token increased almost two times by April, but now it is also going down like other altcoins.

What is Binance Looking for in Launchpad Projects?

Binance Launchpad doesn't accept every crypto project, especially those old ones looking for quick gains, organizations that want to begin using Launchpad must follow some guidelines. They must have, for example, finished business and token economics models which they can present to the Launchpad team. They also need to provide a brief history of their development team, including their experience and qualifications. And finally, their project must be in a mature stage, suitable for large-scale adoption, and have the potential to benefit the wider crypto community.

Guide on how to Use Binance Launchpad for Investing

To use Binance Launchpad, first sign up for a Binance account and finish the steps to confirm your identity. Then, log in and press the menu at top-left. Then choose "Launchpad" from the options below it. The screen will display both active and finished Launchpad tasks. You can look at and join in the support of your favorite one.

Understanding Binance Launchpool

Launchpool combines the safety and easy use of storing things in big exchanges with DeFi's earning potential. It offers a way to make more money from your crypto items without having to do much work.

Started in late 2020 during the DeFi craze, Launchpool is a service that does yield farming. It's run from one central place. It means using what you have now for a certain time, often 30 days, to gain more tokens. There's no limit on how many tokens you can use, but the least amount needed is 0.1 of that token type.

How Do Launchpool Rewards Work?

Launchpool gives out rewards every hour based on the tokens you've put down. It looks at how much crypto you have, what return rate it should be and all your total commitments along with other people who invested too. Seven days after starting a project in farming, Binance adds its token to the spot market. This lets you trade your earned tokens with others. This flexibility lets you put more money in, take out tokens or swap rewards as you want to.

How Can You Use Launchpool?

To join Binance Launchpool and enjoy farming, you just need a Binance account. When you're in, go to Launchpool site. Pick the pool where you want your tokens and choose quantity and press "Stake". Easy as that!

Unlike Launchpad, Launchpool doesn't have strict rules for farming. But, you need at least 0.1 whichever token you want to farm to begin. If you choose to use BNB tokens, they will be added toward your lottery ticket needs for upcoming airdrops and help gain other special benefits like becoming a VIP.

Why Do Crypto Teams Want to Work With Launchpool?

Projects shown on Launchpool get full help from Binance, which is similar to the benefits given by Binance Launchpad.

This help includes getting advice, helping with marketing and allowing access to Binance's big group of investors. After a project on Launchpool releases its token, Binance sets up many trading pairs in the spot market. This allows all users of Binance to trade tokens from that project.

Just like Launchpad, Launchpool has many successful stories. In six months after it started in September 2020, Binance's projects got close to $5 billion worth of value and gave out over $529 million in tokens. This was given to the more than 400,000 investors on their platform.

People in charge of projects that finish from Launchpool have given good comments about their time with Binance. Reed CEO Denko Mancheski said Launchpool helped them get better results like never before. Meanwhile, Litentry CEO Hanwen Cheng praised the unique help that came from using Launchpool instead of traditional methods and highlighted how important this is for projects on BSC ecosystems over a long time.

If you like crypto and looking for more ways to form your portfolio, make sure not to miss other useful stuff like AirdropsCrypto tools and Crypto Communities listed on Cryptoset.gg. 

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