Launchpads have been quite a rage recently. The earlier you can get into a project, the better. There is a high potential that your initial investment will be multiplied when the token is launched in an exchange. Launchpads can further be broken down into centralized and decentralized launchpads. Some of the popular centralized launchpads include Binance, Gate.io, etc. The emergence of decentralized launchpads has been an important milestone of late 2020 and early 2021. Notable decentralized launchpads include Polkastarter and Dao Maker.
Binance IEO
Everybody would love to participate in launchpad events on the above platforms. (For example, the Coin98 event in Binance was highly oversubscribed.) However, these popular platforms have very high thresholds of entry. For example, previously, to participate in Binance Launchpad you need to Hold at least 50 BNB (almost $ 20k in today’s value). Now anybody holding an average number of BNB for consecutive 7 days can participate in a launchpad. While this is extremely good news there are a few drawbacks
· Your allocation becomes very less as the demand increases.
· Binance gives very short notice for its next Launchpad event. In case you are staking BNB in the Binance chain, you will get your tokens after 7 days of unstaking, and another 7 days account holding balance is required to participate in events. So Ideally you will not be able to withdraw in time to get the best out of the IDO platform
· The above point will also mean that you will have to make a call to not stake BNB. This will be a very difficult call as Binance Launchpads are very infrequent and also you will lose on staking rewards which are as high as 14–20%. So in case you are staking 100 BNB, You will have 14 BNB by end of the year which will be an income of $ 5600 at the end of the year (considering today’s rate of approximately $ 400 per BNB).
Some might argue that the returns from each IDO will compensate for the loss incurred due to non-staking. This is true. For example, the Coin98 IEO was priced at $ 0.075. As of today, its performance is as following: 20.38x USD, 14.22x BTC, 12.99x ETH. This is a huge multiplier and is worth it.
Gate.io IEO
Gate.io used to be an average Exchange. It has not risen to prominence due to the enhanced utility of its Gate token that includes participation in IEO. The Gate.io Launchpad is called “Startup”. You need to be in one of the Gate.io Tiers to participate in the Tiers (Minimum Tier 1). Tier 1 needs 150 GATE Tokens to be locked for 14 days. Tier 2 needs 300 GATE Tokens etc.
Gate.io has previously launched some great projects like Daomaker, Game starter, Human Protocol, etc. However, it is to be noted that some of these token launches also require Daomaker’s DAO token to be staked for a short period (along with GATE). For each IEO event, Gate.io will tell you the number of shares you can participate in based on your Tier. Users will also need to ensure that there is a sufficient balance in the account, to be deducted from their wallet. It looks like Gate.io can pull DAOMaker projects directly and hence this becomes one of the important platforms to participate.
DAOMaker
Even considering the recent DaoMaker hack, it remains the single most important launchpad on Ethereum. Even after the hack, the price of DAOMaker did not fluctuate much. It made a small dip of $ 1.70 from $2.00, before rebounding to $ 2.11 as of today. A calculation shows that even in the bear market the Daomaker projects gave an average return of 7.4x, compared to that of 1.6x in Polkastarter and 2.3x in Ignition.
DaoMaker has recently launched some amazing tokens like DinoX, Infinity Pad, DeRace, Game starter, etc. The platform does not give guaranteed allocation though. You need to stake your DAO in Daomaker Vaults. Currently, Daomaker follows a Tranche system.
· Tranche 1: 500–999 DAO Power
· Tranche 2: 1,000–1,999 DAO Power
· Tranche 3: 2,000–3,999 DAO Power
· Tranche 4: 4,000–9,999 DAO Power
· Tranche 5: 10,000+ DAO Power
The DAO Power is achieved by staking DAO in the vault (after a complex calculation). More details here. Very soon Daomaker will move to a Ticketing system with each Ticket offering a $100 allocation to the winner. With this offering, there might be another chance to get into this great project. Watch out!
Note: This post was first published here on Substack with CryptoWriter Publication.
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