Binance Launchpad is a unique product by the Binance cryptocurrency exchange platform. Binance is one of the largest cryptocurrency exchanges in the world based on trading volume and the number of users. The launchpad helps blockchain projects access funding and spread their wings in the cryptocurrency world. This model of funding through a trading platform is called the Initial Exchange Offering(IEO).
The Binance launchpad offers the tokens for a project to the more than 10 million users of Binance exchange. Apart from being a launchpad, the platform acts as an advisory service for new projects. With this feature, startups can tap into Binance experience and expertise and learn how to maneuver the highly competitive cryptocurrency market. In short, projects have to focus on product development while Binance takes care of the rest. Binance has been able to influence five other exchanges to unveil their own launchpads.
Since the launch of Binance, the exchange has gained a positive reputation over its willingness to support new cryptocurrency projects. The Launchpad comes on top of the Binance Labs which supports 21 startups. The exchange sometimes invests in promising projects.
How Binance Lists Projects on the Launchpad
Before listing a project on the Binance Launchpad, the exchange puts a number of factors into consideration. Binance looks at the relative maturity of the project development, readiness for mass adoption, team commitment and the potential to benefit the growth of the cryptocurrency ecosystem.
At the start, Binance puts together a comprehensive review for the project to be listed. The reviews are available to Binance exchange users who learn why the project has a spot on the launchpad. The reviews also guide users to know if they can invest part of their assets into the project.
Binance users with Know Your Customer verified accounts can access the launchpad and participate in the token offering. Note that potential investors are limited regarding the amount of certain token which they can purchase. Token purchases work on a “first come, first serve” principle. Additionally, accessing the launchpad also depends on the country of origin.
Requirements For Binance Token Sale
Before taking part in a Binance Launchpad token sale, we have a number of requirements you need to meet. All the requirements are not constant with all projects. However, we have some general needs or all project that entails a four-step verification process.
In the first step, you need to provide personal information. Basically, the information ranges from your name to your country of residence. In the second step, submit a picture of your identification card. In the third phase, you have to go through the facial information step of the verification process. You have to write down the current date as well as the word “Binance” next to your face while the software takes a picture of you. In the last step, you have to sit back and wait for the Binance team to get back on whether you have been approved or not. The team can sometimes request more information in case we have a hitch.
How To Start With The Binance Launchpad
To take part in a project, you will have to log into your Binance account. Once inside, on the left of the top menu, select the Binance Launchpad that is available on the drop-down menu. In the next phase, you will see all the projects listed on the launchpad.
All the listed projects will have their status listed fully. By clicking on any of the projects, you enter the dedicated page on the platform which contains all the necessary information about the project. The information available has the project price, start time, session supply, starting date and hour. Furthermore, you will see the ‘Buy Now’ button.
To take part in a token sale, click on the ‘Buy Now’ button. The button becomes active when the sale has started. You will be able to buy the designated amount of tokens using the session’s token.
Next, you will be redirected to a section where you define the purchase amount of the new token. You will see the maximum amount, you can purchase according to your cap. You will enter the authentication code and submit your request. Once the request has been submitted, you will enter the token sale queue. At this point, you stay on the page and don’t refresh. When the token sale is over, you will get a notification if you successfully received the sale or not.
Binance Launchpad Token Sales
BitTorrent was the first project on the Binance Launchpad. BitTorrent is a peer-to-peer file sharing mainstay. The platform was purchased by TRON at $140 million. The project goal is to expose its 100 million active monthly users to cryptocurrency by launching a native BTT token. The Binance Launchpad was used to give BitTorrent a perfect start. The BitTorrent token sale was promoted by Binance and Justin Sun from TRON. Based on the hype around the project, the supply of 59 billion tokens ended up getting sold in 20 minutes. Binance even suffered minor technical difficulties in the process.
Fetch.AI is another project on the platform. The Fetch.AI project combines the blockchain and artificial intelligence. The developers seek to deliver data or provide services using smart ledger technology in exchange for Fetch Tokens, the network’s native cryptocurrency. The tokens are for the hospitality, transportation, energy, and supply chain industries.
Another project on the launchpad is the Celer Network. The network is a coherent technology and economic architecture that seeks to enable Internet-scale public blockchains through off-chain scaling techniques. The network also has the capability to scale out billions of transactions per second.
The last project on the launchpad is the Matic Network. This project is for scalable and instant blockchain transactions. Matic Network is a layer-2 scaling platform that enables fast, easy and secure off-chain transactions.
How Binance Launchpad Helps Investors
With any cryptocurrency investment, sufficient research is a must. For this case, Binance Launchpad makes it easier for investors by providing the necessary information about the projects. Information about each and every project is easily available below the requirement tab.
Furthermore, Binance has created a research center with extensive reviews of all listed projects. All interested users are supposed to read the reviews before going ahead and investing.
Releasing a cryptocurrency project to the market is a challenge. Many startups face obstacles along the way and overcoming them can be a challenge. This calls for an adviser who has experience in that particular field.
This is where Binance steps in for many projects. With Binance, the process of launching a new project is easy since everything is simplified for both investors and startups. Startups benefit from marketing and a large user base. On the other hand, consumers are sure that the project involves fewer risks.
Something that is of concern is the willingness by Binance to have aggressive marketing for startups. Experts have questioned this approach where Binance warns potential investors about missing out on a token sale. However, based on Binance’s position in the market, they understand better why they are aggressively marketing these projects. Experts are predicting that in the event we have a prolonged period of inactivity, Binance Launchpad will focus on bootstrapping and aggressively marketing new projects. The risk here is that some projects won’t turn out to be pump and dump schemes and will actually deliver a revolutionary blockchain product.
Note that some fundraising initiatives can be highly competitive since they attract a lot of people hence some challenges might be experienced. Despite the challenges, the Binance Launchpad is setting the pace for the entire market.
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