When it comes to anything related to cryptos, Binance is surely among the top names. Not only is it famous, but it’s also among the highest-grossing and leading platforms to trade cryptos on, primarily caused by the successful Binance referral scheme which has brought in so many users. And it doesn’t stop there. Binance provides the perfect space for all services related to crypto, which you can read more about in our full Binance review writeup, and among the most noted services is the Binance Launchpad.
Of late, Launchpads are gaining fame in the crypto world. You will most probably find tons of discussions regarding it on sites such as Reddit. What’s so attractive about Launchpad is its ability to alert traders of opportunities for any type of profit. It offers services that allow traders to take part in presale rounds for crypto contracts. Also, traders are also able to find avenues for crypto trading much ahead of time.
Besides, the platform’s even working on a service that will protect traders from any and all types of scams.
What is Binance Launchpad?
It’s a token launch platform for launching Initial Coin Offerings (IEOs). It helps blockchain projects raise funds and increases their reach across the crypto space. These blockchain projects are rigorously reviewed before they announce it on the platform. And it allows users to obtain tokens before they go to the Binance markets. Also, it allows users to stake their own coins to obtain newly launched coins using the launch pool feature.
You must use your BNB tokens to register for a token allotment in the Launchpad project. The Binance account’s aggregate amount of BNB directly limits your BNB subscription. Binance carries out such a calculation for the time period before it announces the Launchpad project.
Binance Coin or BNB
In 2017, eleven days prior to the day Binance online crypto trade happened, Binance Coin or BNB came into being. Initially, BNB wasn’t how we know it today. In the beginning, it started simply as an ERC-20 token. Besides, it ran predominantly only on the trading networks on Ethereum. During the ICO, it garnered a whopping 100 million BNBs, with 200 million coins marking the supply cap.
Around the same time, in April 2019, a coin trade took place. It saw a 1:1 swap between the BEP2 BNB and ERC-20 BNB coins. The April 2019 duration also marked the genesis of the main Binance Chain. So much so that now these coins have nothing more to do on the servers of Ethereum.
BNB is as good a currency as any other, at least when it comes to the Binance platform. It offers users an efficient method to make payments for their contracts. Besides, to undertake exchange on Binance, traders can even use it as a means to pay their fees. Thus, users may use it as a utility token.
Especially when it comes to Binance Launchpad, traders can use BNBs in token sales. Besides, it was what the Binance DEX stands on.
How does it work?
Binance announces new projects on the Launchpad platform semi-regularly and offers new opportunities to users to buy into these projects. Plus, Binance provides full advisory services for new projects. It keeps you informed and will give you all the details about the new project. And where it’s going to launch as well as giving you links to their website.
The strong support by the platform helps both users and creators. The advisory services also encourage development by lending their experience to the launch.
What Format Does The Binance Launchpad Use?
The Binance Launchpad 2023 changed its concept from a lottery system to a new system, i.e., the allocation system. When it was a lottery system, there wasn’t any guarantee on allocations in the Launchpad projects. It was a lottery, and you had to win the lottery to get an allocation. But now, you simply have to subscribe, and you’ll get an allocation in the new Launchpad project.
The allocation system is actually a major advantage compared to other Launchpads. Most Launchpads such as Huobi that are currently on the market make use of a lottery system. That means it’s not easy to get an allocation in these Launchpad projects. But when you use the Binance Launchpad, you simply have to subscribe in order to get tokens.
Thus, there’s a guarantee on the tokens as long as you remember to subscribe. You’ll be able to view the subscription period for each project at the Launchpad. All you have to do is subscribe within the given time period.
When you subscribe to the Launchpad project, carefully dedicate your finance points to the project. Each project has a Hardcap per user. Say, if the project you want has a Hardcap of 49.26 Binance Launchpad coins. It equals around 28000 US dollars. But when you choose a project, keep in mind that there’s a lot of interest in these projects.
Thus, you’ll only get a fraction of the BNB you subscribe to the project. Also, most likely, you’ll get only 0.5% of the BNB that you subscribe to the Launchpad project in Launchpad tokens. You’ll get quite a small allocation if you don’t hold a lot of BNB.
You should also read about the project before you decide if you want to participate in the IEO. It’s a good practice to know what you’re investing in. And thus, there’s a website and the white paper of the project, and a research report. These contain a lot of information about the project to give you an idea of how strong a project is. You’ll be able to find all of that right here.
How to use Binance Launchpad?
- Open the Binance app and head on over to your home page.
- On your home page, you’ll see the Launchpad option. Click on it.
- The Launchpad will direct you to a page that will show you the hard cap per user. It’ll also display a link to the website, the white paper, the fax, and the ACM research report by Binance. The page will also contain detailed rules around the launch feature. It’ll show you the subscription timeline. And it will include a listing of the BNB holding calculation period, subscription period, and calculation period.
Also, you’ll also find the final token distribution.
The Launchpad also has the Launchpool feature. To use it, follow these steps:
- Go to your homepage and tap on more.
- Scroll down and under others, click on Launchpad. The Launchpool is the Binance token launch platform where you can form new tokens. By staking BUSD or BNB on launch pools, you earn rewards.
Before you start, make sure your BNB or BUSD is on your spot wallet. You can then scroll down and look for the BUSD pool or BNB pool.
- Click on BUSD or the BNB, depending on which one you want to stake. You can then tap on Stake Now.
- You’ll then be able to see the token on Launchpool. Click on Stake. By staking, Launchpool will deduct your BUSD or BNB from your spot wallet. And it locks into your Launchpad account within your saving wallet.
- Enter the amount you want to stake under Stake Balance, and it’ll display the current APY in the past hour. After you have entered the amount, click on Stake.
How To Use The Binance Launchpool To Harvest New Tokens?
- You’ll need to go back to the Launchpool to harvest your farm tokens.
- Go to your homepage and tap on more you.
- Scroll down and under others, click on Launchpad.
- On the Launch pool page, click on the “Pending Harvest” floating widget and click Harvest All. It’ll display the time before the next harvest.
You can also redeem your stake BNB or BUSD at any time.
- To do so, go to the Launchpool page and click on redeem.
- Enter the amount you want to redeem and click on redeem. The funds go back to your spot wallet. And you can save it for the upcoming projects.
What Are The Benefits And Risks?
- The first major advantage of the Binance Launchpad is that it guarantees an allocation in the project.
- Secondly, all the projects on the Binance Launchpad have been of high quality, and that will most likely continue.
- The third thing is ease of use. Even if you’re a beginner at crypto, you’ll find it easy to participate in the Binance Launchpad IEOs. And it’s especially easier to use compared to IEOs on decentralized exchanges. For such exchanges, you’ve to be a little bit experienced in crypto in order to understand what to do. And you’ll need separate wallets to participate in those IEOs.
There’s a huge potential for growth with new blockchain projects. And having some in-depth experience and knowledge of the product is always helpful. Also, being among the first people to collect coins on Binance is a plus point. As with all trade, it carries risk, and you never know how some of these projects will perform long term.
All on the Market
The Launchpad allows you to stake the coins over a period of time to collect new coins. However, your coins are in that staked position during the period of that. So, you can’t use them for trading in any other kinds of trade. Due to this, you are at the mercy of the market while your coins are at stake.
But, there’s a lot of heavy traffic around new coins and the potential for earnings. Thus, even a small amount of state coins makes for a very attractive feature. At the same time, new projects are exciting and risky. It’s something you should keep an eye out for on the Launchpad.
How To Participate In Binance Launchpad?
Step 1: The very first thing you must do is to calculate the cap on your participation.
In general, this limit directly depends on your BNB balance taken on average. The time consideration for this aggregate is usually over a couple of set days. During this time, you don’t need to undertake any extra steps such as stake funds and so on.
Step 2: The next step involves sticking to a specific amount of BNB coins.
This step comes right after the participation stage. Such a step is necessary to get tokens for the Launchpad.
Step 3: Once that’s over with, you need to do some serious math here. When the time period for the commitment of BNB coins matures, we would need to review the allocation. This said allocation is for the Launchpad user’s tokens.
Step 4: The final stage involves some deductions from the amount of BNB coins. The cut is solely for the sake of the Launchpad tokens. The portion so deducted will be from your share of BNB coins. In the end, whatever amount you’re able to garner will be directly sent to your Spot wallet. It’s true for both the Launchpad tokens and BNB coins.
Points To Remember
You must remember that when it comes to the sale of these tokens, it’s on a “First Come, First Serve” basis. Besides, the platform introduced the lottery system. Also, the lottery system directly relies on the amount of BNB coins in the accounts of users. The main aim of these mechanisms is to control the heavy traffic on the platform.
As mentioned earlier, to be able to find out about projects that may garner lots of profits is everything. That too, when you might have or are putting a lot at stake. Getting to know about projects in their initial stages can either make or break you. Besides, stats reveal that millions go down the drain due to scams in the crypto world. Thus, Binance Launchpad isn’t just vital but becomes very much necessary for a good run.
It offers the perfect ecosystem for you to trade and your funds to boom. At the same time, it’s able to become the most efficient bridge connecting you and profitable projects. Thus, when it comes to bringing safety and pumping confidence among its users, Binance surely did wonders. Not only does it boost interaction, but it increases the overall efficiency of the platform. And in all these regards, Binance Launchpad is nothing short of a success.