Now that cryptocurrencies are becoming legitimized in the public’s consciousness, raising capital for crypto projects has evolved. Rather than the outdated initial coin offering (ICO) model, many projects now opt for a crypto fundraising platform or a crypto incubator project to raise capital. The rise of the crypto launchpad has created a safer platform for initial token offerings, with the backing of some of the biggest names in crypto. Also, crypto fundraising platforms give users the chance to invest in projects early. Furthermore, this increases the potential for gains for token holders while providing a secure platform for innovative project launches. So here is our list of the top 5 crypto launchpad platforms you should be aware of!
In this article, we’re going to explore some of the innovative methods used to raise capital for crypto projects while allowing investors to participate in presale events and token sales. Also, we’ll look at how a crypto launchpad or crypto incubator project can fit into the broader blockchain ecosystem.
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A new sub-category is emerging in the altcoin realm. Crypto incubators are becoming the most accessible way to gain early allocation to token launches, and many new projects are emerging that are showing real promise.
What Is A Crypto Fundraising Platform?
A crypto fundraising platform is a way for a startup to raise capital to fund the development of a project, that uses community token sales as a way to incentivize early investors and build a dedicated community. Furthermore, it is an innovative solution to a common problem.
Best Crypto Incubator Projects:
TrustSwap
TrustSwap launched on June 19th, 2020. The project is headed by CEO Jeff Kirdeikis. Kirdeikis previously established the successful blockchain social media project Uptrennd.
Venture Capital firms (VCs) often turn to crypto fundraising as a way to gain early access to token sales at a discounted price. TrustSwap was created as a crypto launchpad to ensure that VCs would not be able to sell all of their tokens immediately after the launch of the token, which usually causes the token price to crash. Before crypto fundraising platforms, third-party intermediaries were required to ensure that VCs only received token distributions periodically.
The technology to create such agreements has been available for years. However, it has rarely been utilized. Time-based payments are one of the core features of the TrustSwap suite. This, along with trustless team-token lockups, automated payments, and decentralized escrow services make up the backbone of the TrustSwap project along with the SWAP token. The SWAP token is a unique utility token that is the lynchpin of the TrustSwap ecosystem.
Ultimately, TrustSwap aims to be the premier crypto fundraising platform and cross-chain DeFi ecosystem that accommodates all smart contract-based applications and DEX solutions.
Crypto Subscriptions
The most frequently used billing method for online service providers is recurring subscriptions. Retailers can use TrustSwap to seamlessly integrate crypto subscriptions onto their website. Also, this can be done with any Ethereum-based token. This is a great tool for recurring subscriptions of all kinds. Also, crypto subscriptions can be used to pay for content and educational resources using crypto. Furthermore, the same TrustSwap function can be used for automating payments such as employee salaries.
Escrow Services
Escrow services have been a burden on the traditional financial system for too long. The middle-men encountered and the lawyer fees incurred by venture capital firms can be extortionate at times, simply for using a trusted third party in a transaction. Thanks to the use of blockchain and smart contracts, TrustSwap can remove third-party intermediaries from escrow services. Also, TrustSwap provides a fully audited, non-custodial service to transact large sums of money quickly and securely.
Tokensale Launchpad & Trusted Coin Offerings (TCOs)
Token launches can be problematic for several reasons. Also, team token dumps, rug-pulls, and bad tokenomics can lead to a shaky start for some crypto project launches. Therefore, TrustSwap has created the new “Gold Standard” for token launches. Some of the key features include:
Team Token Locks
As the name suggests, the tokens earned by the teams creating cryptocurrency projects are vested. Payouts are periodical, adding stability to the price action of a newly released token. This is achieved using smart contracts. This means that token locks are immutable. Also, this gives investors a great deal of faith in a project and can reduce price action volatility.
Event-Based Payments
Only after pre-agreed milestones are achieved, can investment tokens be unlocked. Furthermore, if a project fails to meet these milestones, investors have the opportunity to retract an investment. The SWAP token is used for the governance of this process along with the native token of the newly launched project.
Investor Token Release
Tokens purchased by investors in a presale are distributed over a set period. This reduces the likelihood of liquidations, rug-pulls, and post-launch token dumps.
Early Access
Perhaps the most compelling aspect of TrustSwap is the ability to stake the SWAP token to gain access to presale allocations. Investing in a promising project at presale level drastically increases the chances of higher returns. Also, staking the SWAP token entitles you to airdrops and rewards.
Wrapping as a Service
TrustSwap allows any token to be wrapped onto the Ethereum network. This means that tokens from non-Ethereum blockchains can interact seamlessly with decentralized exchanges. Wrapping as a Service also allows lesser-known projects to simplify the listing process by removing the need for proprietary wallets. Therefore, projects save time and money when using a crypto fundraising platform.
The SWAP token is quickly becoming a must-have for crypto users. This is because the SWAP token is the only way to gain access to one of the most successful crypto fundraising platforms in the industry.
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Polkastarter
Polkastarter is a decentralized exchange (DEX) created for cross-chain token pools and cryptocurrency auction events. Also, Polkastarter is a crypto fundraising platform that facilitates the raising of capital for cryptocurrency projects. This is done in a decentralized, permissionless way using the POLS token. Holders of the POLS token are given early-access to cryptocurrency auction events. Many of these events have been incredibly successful. Recent cryptocurrency auction pools include MahaDAO and SpiderDAO, both of which sold out within seconds!
Built on the Polkadot ecosystem, Polkstarter facilitates fast and cost-effective cross-chain token swaps. Also, the Polkastarter crypto fundraising platform provides permissionless listings for up-and-coming projects, serving as a crypto launchpad for holders of the POLS token. Fundamentally the POLS token is a utility token that powers the Polkastarter platform. Therefore, only by holding the POLS token can users gain early access to these projects.
The Polkastarter 1.0 Beta went live on the Ethereum mainnet on December 15th, 2020. Astonishingly, the first two liquidity pool token auction events sold out in 30 seconds! These are among the fastest-selling in cryptocurrency auction history.
Polkastarter is helping to build the foundations of a truly interoperable DeFi ecosystem. As a DEX built to accommodate cross-chain cryptocurrency auction pools, Polkastarter is among the most innovative crypto fundraising platforms around. Furthermore, Polkastarter provides a secure, compliant crypto fundraising platform to utilize digital assets in a way not possible on Ethereum alone. Additionally, the Polkadot ecosystem utilizes the liquidity from Ethereum-based DeFi protocols.
The POLS token has seen huge interest over recent months as the platform continues to develop. Furthermore, as the demand for DEXs continues to increase, the utility of the POLS token is likely to increase. The cryptocurrency auction is an exciting prospect, and Polkastarter is certainly a project to watch out for!
UniLayer
Welcome to the next-generation decentralized trading platform built on top of Uniswap. UniLayer brings key features to the popular decentralized exchange to facilitate professional-level trading. Primarily, UniLayer is built for automated swaps, liquidity management, analytics, live order books, and other services found on popular centralized trading platforms such as Binance.
Users can connect to the UniLayer app using a Web3 wallet. Plus, the UniLayer DEX includes a fiat on-ramp. Also, UniLayer utilizes the liquidity of Uniswap while providing additional trading features to improve the user experience. Furthermore, UniLayer offers flash staking of the native LAYER token.
Successful Launch
The UniLayer Launchpad went live in November 2020. The first offering for the crypto launchpad is BetFi, a decentralized gaming platform combining DeFi with gaming. With a goal of 2,500 ETH for the initial presale, at the time of writing the crypto fundraising platform has reached 40% of this target.
Also, staking LAYER tokens entitles users to staking rewards which are distributed instantly upon staking. Users staking the LAYER token receive 1% of the ETH raised for each successful project fundraise on the UniLayer platform. Also, holders of the LAYER token are prioritized for investment allocations on new projects. As with most crypto incubator projects, the higher the amount of the LAYER token staked, the earlier investors gain access to token launches. This is the beauty of crypto fundraising platforms.
The crypto incubator provides investors with a decentralized way of investing in a startup and includes timelock features similar to those of TrustSwap, to avoid post-launch team token dumps.
UniLayer was not intended to be a crypto launchpad. However, the success of the development team has resulted in an impressive roadmap that incorporates various exciting features.
The LAYER token is still extremely undervalued as this project is so new. Despite the fact that this comes with high risk, it’s definitely worth checking out UniLayer and the LAYER token. With so many developments on the platform itself, the LAYER token looks set to provide a lot of utility to the ecosystem.
Duck Dao
Duck Dao is the first community-driven decentralized crypto incubator and one of the most popular crypto fundraising platforms. The platform enables projects to achieve their goals through investment using the DuckDaoDime (DDIM) token. Furthermore, with the use of expert marketing and a dedicated community, the Duck Dao crypto incubator project is democratizing access to investment opportunities, by giving community members early access to token launches by holding the DDIM token.
That being said, the price of the DDIM token has already priced some investors out of the market. Partly, this is due to the performance of the token at the heart of the crypto incubator project. Since the August launch, the DDIM token hovered at around $4. However, the token soared to over $36 in the first two weeks of December!
When VCs dump on retail investors, not only do holders of the new token suffer, but it is often a detriment to the project and can damage sentiment around the platform. Duck Dao is cultivating long-term partnerships with some incredible crypto projects and is one of the best-performing crypto fundraising platforms in existence.
The Duck Dao crypto incubator is split into 3 tiers for project involvement:
Tier 1 - Incubation Level
This includes working with projects from the start of the development process, right through to the point of an exchange listing. Also, projects benefit from various marketing, listing, and advisory services to further bolster the long-term success of the project.
Tier 2 - Strategic Contribution Level
Beyond being a crypto fundraising platform, Duck Dao provides services to assist with social media strategy and marketing. Considering the hype around the Duck Dao crypto incubator, this is priceless. The Duck Dao community is among the most engaged in the space and contributes to the projects in a way not seen by other crypto fundraising platforms. Any additional promotion from the Duck Dao team is incredibly powerful.
Tier 3 - General Contribution Level
This tier is responsible for over-the-counter (OTC) sales and requests from within the community. Also, The Duck Dao community plays a crucial role in facilitating the growth of the platform by attracting investment and partnership opportunities.
Members of the token-permissioned Duck Dao Telegram communities are provided with allocations to presale events. This is made possible by the DuckDaoDime token (DDIM). The Duck Dao crypto incubator platform has a tiered system for holders of the DDIM token to gain early access to crypto investment opportunities. Therefore, by holding a certain amount of the DDIM token, users can gain various levels of allocation to presale events.
These tiers are broken down as follows:
- Duck Fightclub: Holders of at least 10 DDIM
- Beach Club: Holders of at least 200 DDIM
- Gentlemen’s Club (VIP): Holders of at least 2,500 DDIM
- Diamond Club (VVIP): Holders of at least 10,000 DDIM
- Duck Allstars Club: The top 10 DDIM holders
Despite the promise of the Duck Dao crypto fundraising platform, a guaranteed allocation is not a given. The lowest tier members earn allocations by participating in community events and community engagement. Holding only 10 DDIM tokens makes presale allocation unlikely. However, it is possible and is an effective marketing strategy.
A lottery is held for tier 1 members whereby those that contribute the most to the project through social media engagement and promotion stand a higher chance of winning an allocation. Also, allocation overflow is passed to tier 1 investors when the full capacity for funding a project is not met by higher tiers.
The success of the Duck Dao crypto launchpad speaks for itself. However, the team carries out extensive due diligence checks for any potential projects. This ensures that only the best projects are considered for the crypto incubation project. Recent successes include: Bondly, Geeq, DeFiPie, Base, and Fyooz. Astonishingly, each project has achieved double-figure returns for early investors!
Furthermore, Duck Dao has partnered with some of the most influential figures in the industry and boasts an impressive array of collaborations with various crypto projects. The future looks bright for the Duck Dao crypto incubator. As the crypto launchpad model continues to gain attention, the ducks appear to be in line at the forefront of the crypto launchpad sector.
Binance Launchpad
Binance is the largest centralized cryptocurrency trading platform and exchange in terms of trading volume. It is also one of the fastest-growing, most-profitable startups in history. One of the most successful features of the ever-expanding Binance ecosystem is the Binance Launchpad. At the time of writing, Binance Launchpad has successfully helped launch 24 new crypto projects. Furthermore, the crypto launchpad is currently working to process another 6 projects.
The Binance Launchpad provides holistic support for blockchain startups while allowing holders of the native BNB token to gain early access to token launches and participate in airdrops.
Projects that are accepted onto the Binance Launchpad receive the backing of the world’s largest cryptocurrency exchange for the initial issuance of tokens. The Binance cryptocurrency fundraising platform works similarly to the initial coin offering (ICO) model which was popular in 2017. ICOs were often extremely flawed and resulted in huge losses for many people. However, Binance has made some key changes to its crypto launchpad infrastructure.
The Binance Launchpad uses an initial exchange offering (IEO) model. This model requires any project to be vetted and approved before it can be listed on the crypto launchpad. However, applications are open to developers and project managers to submit proposals for Binance Launchpad.
Projects are favored for having long-term utility prospects and for benefiting the broader crypto community. Successful projects will then feature on the Binance Launchpad. This gives users of the Binance ecosystem an insight into new investment opportunities once they are selected for the crypto launchpad. Participating in Binance IEOs is simple. However, users must hold at least 100 BNB tokens to enter.
Binance Launchpad has proved to be an incredible success. Notable projects to come from the Binance Launchpad include BitTorrent, Fetch.AI, Matic, Elrond, Kava, and Band Protocol.
Top 5 Crypto Incubator Projects & Launchpad Projects 2020 Summary
So, if you didn’t know what a crypto fundraising platform or a crypto incubator project was before, now you do! Hopefully, this list of the top 5 crypto launchpad projects 2020 has given you some food for thought. The world of blockchain is evolving so rapidly, the innovation and use cases are becoming nuanced and complex sector-wide.
The crypto launchpad is quickly becoming one of the most accessible investment vehicles in the industry and soon we can expect to see similar crypto launchpad projects entering the space. From the innovative token auction model to comprehensive crypto incubators, it is becoming easier than ever to invest in projects at the early stages of their development. It’s a win-win for both the project and the user!
The opportunity to get into a presale event could be life-changing. It is, however, still risky. Of course, always carry out risk management, and never bet what you can’t afford to lose. However, the rise of the crypto launchpad is changing the way projects generate capital. This makes it easier than ever for a good project to reach the market in a way that is safer than in previous years.
Don’t Forget!
Also, as you may have heard, crypto regulation is becoming a hot topic. Several countries are now expediting crypto regulation to accommodate the overwhelming demand for crypto! You can learn more about crypto regulation by reading our recent crypto regulation forecast.
Finally, as the festive period approaches, make sure you check out our top crypto gift ideas for Christmas 2020!
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This is NOT financial advice. Beginners Crypto Guide does NOT OFFER formal nor informal financial advice and accepts no liability for such service. You should always do your own research before making any financial decisions.
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