What Is Launchpad?

Launchpads bring together early-stage projects and users who want to fund them. In the model run by a centralized exchange (IEO), the exchange vets the project, sets the sale terms and usually lists the token on its own platform after the sale. In decentralized launchpads (IDO), the sale is run through smart contracts and part of the funds raised is often used as liquidity on a decentralized exchange.

The right to participate is often tied to requirements such as holding the platform's own token for a certain period, staking it, or being added to a whitelist. When demand exceeds supply, allocations are distributed by lottery or proportionally to the amount of tokens held. Part of the purchased tokens may be released immediately, with the rest unlocked over time according to a vesting schedule.

Launching through a launchpad does not mean a project will succeed. There are risks such as sharp price swings after listing, selling pressure from unlocks and, especially on unaudited platforms, fraud (rug pulls); for this reason, the project's whitepaper, team and tokenomics should be reviewed separately.