What is Launchpad

The greatest benefit from investing in new cryptoprojects is received by early investors who participate in the first stages of tokensales. Launchpad platforms make it easier and faster to find promising cryptoprojects and invest in them.

What are Launchpad platforms, how do they work, and what are their benefits? Keep reading the article to find out the answers to these questions.

Definition and essence of how Launchpad platforms work

Launchpad is a platform where new cryptocurrency projects attract investments through the creation of tokens. Launchpad platforms bring together creators of cryptoprojects and investors at one place and give them the opportunity to make a profit.

Another year of productive work, high achievement of new career levels, outstanding events and activities is coming to an end, and very soon the new year 2023 will come. We decided not to change the tradition and together with you to summarize the results of 2022, and also to draw the curtain of plans for 2023. Let’s think together about the S-Group’s path in 2022, as well as the brightest updates, events and, of course, the achievements of the partners.

Launch of new investment areas

The year 2022 at S-Group was rich with powerful new leaps into the crypto sphere, the launch of convertible stablecoin and exchange token, and the opening of a new investment area.

Liquidity Mining SWP

1. Each Launchpad platform issues its own tokens, which give projects and investors access to the site’s functionality.
2. Then centralized platforms carry out KYC and AML procedures to verify projects and investors. This helps make the investment process safer.
3. After the verification procedures are completed, projects and investors get access to work on the platform.
4. The investment process consists in the purchase of crypto project tokens by investors. 

Important! It is impossible to sell the purchased assets immediately. As a rule, projects pay the entire amount of purchased tokens to investors gradually. This is necessary so that investors with a large share of assets do not immediately start selling assets and lower the rate. 

Main tasks of Launchpad platforms: 

– check the reliability of the project, its team and digital asset;

– provide potential investors with access to investments in proven projects;

– provide projects with the opportunity to receive investments for development;

– create an interested crypto community in order to increase the recognition of the platform and attract new users.

Types of Launchpad platforms

There are two main types of Launchpad platforms: centralized and decentralized. Let’s consider them in more detail.

Centralized (CEX). They are developed on the basis of centralized exchanges or wallets, so they immediately have a loyal community and user trust. User verification procedures are implemented on centralized platforms, which carefully check each project. 

The disadvantages of such platforms are possible limitations and the lack of complete anonymity of users, which may not suit supporters of the idea of cryptocurrency decentralization. The assets of users of centralized Launchpad platforms are stored in exchange accounts. 

Decentralized (DEX). They allow projects to raise funds more efficiently and at a lower cost. Decentralized platforms operate using smart contract technology, eliminating the need for centralized influence. To participate in token sales, users need to log into the platform, select a project and connect a crypto wallet to purchase assets. 

On decentralized platforms, projects do not pass the same checks as on centralized ones. Therefore, investors should research all aspects in detail before investing.

1. WhitePaper of the project and of the digital asset. A technical document that describes the idea of the project, the principle of operation, development prospects.

2. Project tokenomics. This is an asset allocation scheme. The success of a digital asset and its economic model depends on it.

3. Social media of the project. Positioning of the project, involvement of users and the community in the development of the project, user comments, etc.

4. Mentions of the project in the public media. Feedback about the project in the media space, reputation assessment — all this helps the investor to have a lot of information about the project.

Risks and Benefits of Launchpad Platforms

Investing in Launchpad platforms comes with certain risks.

– Possibility of hacking. Both CEX and DEX platforms can be hacked. In this case, personal data may be leaked and assets may be lost from user accounts. By choosing reliable Launchpad platforms, you can reduce the risk of data and funds being stolen.

– Access to assets. Centralized platforms have access to user accounts. If the platform is hacked, all users are at risk of losing assets. On decentralized platforms, only the user has access to the account. But if he forgets the password or Seed-phrase to enter the wallet, he will lose access to the funds. And since there is no support service on DEX platforms, it is impossible to restore access to the account.

– Fraud. On DEX platforms, there is a high risk of investing in scam projects due to the lack of verification of participants. Therefore, investors need to carefully research the project, the tokenomics of the digital asset, and look for mentions of the project in social networks. 

Despite the risks, Launchpad platforms have the following advantages:

– Security. On centralized platforms, investors and projects undergo AML and KYC verification, which reduces the risk of fraud. Decentralized Launchpad platforms operate on smart contract technology that automatically regulates compliance.

– Availability. The user independently chooses a cryptostartup that is of interest to him. The platforms have a large selection of projects for investment with a minimum entry-level threshold.

– Profitability. The opportunity to invest in the project at the initial stage at the lowest price and get a high income after listing the token on the exchange. For example, since the Public Sale and listing on the decentralized exchange PancakeSwap, the price of the SWP token has risen by +2260%.

– Cryptocommunity. New projects have the opportunity to attract users of the platform on which it is hosted to investments. This increases its recognition among investors who are interested in the cryptosphere.

Launchpad platform S-Pad

S-Pad is a Launchpad platform within the S-Wallet ecosystem that opens up investment opportunities for promising cryptostartups. 

Already on January 30, S-Group partners will be able to get acquainted with the functionality of the platform and take part in the first tokensale on the platform — the Private Sale round of the S-Exchange exchange token. The size of the allocation for the purchase of exchange tokens will depend on the number of SWP tokens that the user has fixed in a staking deposit for 180 or 360 days. 

To receive an allocation, you need to create a staking deposit before the start of the calculation period, then you can redeem the allocation available to you and purchase an exchange token that can be used as an investment asset within the exchange ecosystem.

In addition to participating in the Private Sale of an exchange token on the S-Pad platform, you can also get exclusive access to investments in new cryptocurrency projects and the opportunity to purchase digital assets. 

Perspectives on Launchpad Platforms

Platform Launchpad is a profitable tool both for raising funds and for investing in new projects and tokens with further profit. 

Launchpad platforms have made the process of tokensales more secure and convenient for both project creators and users. But it is important for investors to remember that any project needs to be carefully researched and analyzed in order to assess all the risks and receive income in the future.