What is Binance Launchpad?
Binance Launchpad is a platform that makes it possible for potential projects to raise capital through a process known as Initial Exchange Offering (IEO).
Previously, blockchain projects had a lot of difficulty in staging their own Initial Coin Offering (ICO) to raise funds. Binance Launchpad has been launched to streamline and secure the process of raising capital from the cryptocurrency community, as well as eliminate the vulnerabilities and risks that previous ICO has faced.
Before a project implements IEO on the Binance Launchpad, Binance had a research and investigation team to ensure that the project has reached the right level of maturity, providing scalable infrastructure for the blockchain and cryptocurrency community.
Since 2019, Binance Launchpad has raised funds for more than 60 quality projects such as Polygon, Axie, WarzirX, Band Protocol, Cartesi, StepN,…
Binance Launchpad is part of Binance Earn’s financial products ecosystem – providing multiple solutions to generate passive income from cryptocurrencies for investors at the same time.
How Binance Launchpad Works
- Every month, Binance chooses an excellent project to raise capital.
- Binance will announce it on Twitter, Telegram, and the project will appear on the LaunchPad homepage.
- Binance will sell tokens through a lottery.
- The token will be paid to the user, and BNB will deduct it from the account.
- Officially listing the transaction in that month.
Benefits of Binance Launchpad
The tokens are launched on a reputable platform
Binance Launchpad gives cryptocurrency projects a convenient way to raise capital on a platform that is well-known in cryptocurrency market with vast network
Protecting both users and projects
Binance protects users and token launches with solid security layers. Cryptocurrency projects are not subject to the risks of being attacked when building a fundraising platform. Meanwhile, investors don’t have to worry about their withdrawals from Binance, avoiding unnecessary losses.
Growth opportunities for potential cryptocurrency projects
When introduced on Binance Launchpad, the projects will reach millions of Binance users around the world The launched projects will be listed and receive world-class liquidity along with supporting trading pairs. Besides, the project will receive support from Binance to issue tokens for the first time as well as guidance from Binance’s listing and investment team.
Fair distribution of token issuances
Binance Launchpad applies the lottery to its token allocations. After a new IEO is announced, the system will conduct a snapshot of the number of BNB holdings of potential investors over a certain period of time that varies depending on the sale.
After the end of the BNB holding period, the “ticket” receiving button will be displayed within 24 hours to the users. The user needs to confirm their lottery tickets after the lottery begins. The winner will be able to participate in the IEO issuance and can trade these new tokens to receive BNB. The amount of tokens that investors can hold will depend on the number of cryptocurrencies they have committed to and the individual limits of each one.
The application of this lottery mechanism to Launchpad is to ensure that the first token issuances will be accessible to as many people as possible. There’s no need to worry about only a handful of holders being able to hold the majority of the circulating supply.
The potential for long-term success for both the project and for the holders
Although the results vary between different tokens, Launchpad has helped startups to be significantly successful. Cryptocurrency projects make the enduring efforts to be introduced on Launchpad. IEO has delivered great results, as shown by the impressive performance figures of the projects that are considered as the best performance.
The numbers don’t lie. The chart below will demonstrate to you the growth of projects since IEO on Binance Launchpad.
Conditions for purchasing IEO on Binance Launchpad
To purchase IEO on Binance Launchpad, investors need to ensure the following conditions:
- Register a Binance account and complete KYC.
- Hold BNB tokens before the opening date.
- Token registration period: The investor must sign an agreement to purchase the token before completing his BNB digital commitment. The amount of BNB will be locked and not be able to convert, withdraw, or trade until the token allocation is complete.
- At the time to allocate token, investors just need to wait for the results.
- Finally, the system will automatically subtract the BNB corresponding to the amount purchased. The excess BNB and the amount purchased token will automatically transfer to the account.
Why do investors participate in an IEO?
IEO (Initial Exchange Offering) is a form of crowdfunding through token offerings on cryptocurrency exchanges. In ICO, investors buy tokens directly from the project while in IEO, the token will be sold on an exchange. People rush to buy IEO on Binance Launchpad because:
- Projects selling tokens on Binance Launchpad have undergone a round of surveys and are highly appreciated by Binance’s team so the potential for development is outstanding. Therefore, investors can get high returns when investing in projects on Launchpad at competitive prices.
- In addition, Binance’s vast ecosystem has a lot of supporting advantages for blockchain projects .
- In particular, the projects that have previously launched IEO sales on Binance Launchpad all showed outstanding profit figures.
How to buy IEO on Binance Launchpad
Phase 1: Preparation
Investors need to hold an amount of BNB before the registration period (usually 7 days in advance)
Phase 2: Selecting projects
Step 1: On the Binance app home page, click [More], at the Earn list, select Launchpad.
Step 2: On the Launchpad toolbar, you’ll see a list of information about projects on open sale.
- Sale price
- Total Token Supply
- Hard cap per user: Each person’s purchase limit
- Token Type
- Date & time to start
Phase 3: IEO registration
Based on the number of BNBs held, the system will proceed for participants to register. Then it will calculate the maximum commitment limit of each user based on the time & the amount of BNB previously held. That is also the amount used to commit & buy tokens.
Step 1: Once there is a BNB balance on the spot wallet & holding as required, select [Commit BNB] ⇒ Enter the amount of BNBs you want to commit to and click [Commit now].
Step 2: During this time, the registered BNB amount will be locked, you just need to wait until the end of the countdown time.
Phase 4: Token allocation
After completing the registration, Binance will calculate and allocate tokens based on the Commitment Ratio for the deduction. You will then receive the corresponding amount of IEO tokens and the BNB will be transferred to the Spot wallet.
Binance Launchpad is a potential token launch platform which helps blockchain projects to raise investment capital. With Binance’s reputation and influence, Binance Launchpad increases the project’s accessibility to other cryptocurrency ecosystems.