Investors had to risk investing in projects that may be scams and launch pads are a way to make new and potentially valuable tokens available to more people with a higher degree of safety, theyre kind of like a filter for crypto projects. Now the question is: should you invest in a launch pad and get access to new and exciting crypto projects? So i wanted to do the work here and give you as much valuable information as humanly possible on the best launch pads available to you today and why i think those have potential and then, of course, im going to talk about the risks involved. When youre. Considering putting your cash behind these projects, including five key metrics, that you want to look for in each project now, what is a launch pad youve likely heard about them within the last few months, given how popular theyve been this year? But i want to do a quick definition check here, because we need to differentiate between a launch pad and a launch pool. A launch pool is basically another form of an initial stake offering with a launch pool. You stake a crypto like binances bnb token, into a specific stake pool. You are then paid staking rewards in the form of tokens for a brand new small cap crypto project. So, for example, lets say you wanted to invest in imaginary, new crypto called the max token. The max token would have a pool where you can stake your crypto in and be paid back.

In max token, this would give you exposure to the max token with near zero risk. Now a launch pad is a more involved platform that allows you to buy the token of a launch pad and get exposure directly to new and exciting crypto projects. That kind of do some of the work for you. They get all of these project proposals sent to them, they do a bit of filtering and they put offerings on their site. The simplest way that i can describe them, theyre, the crypto equivalent of startup incubators, so believe it or not. It takes a lot of work to create a new crypto project, at least a good one. Much like a traditional startup teams of people need to come together and establish what value it is that theyre going to provide, how theyre going to operate and ultimately, what they have to do to make sure that their business is successful. And this is particularly important because in the crypto space projects, dont normally sell shares of their actual business. Instead, tokens are sold to investors and then the hope is that those tokens will appreciate an increase in price. The trouble is because of the sheer number of tokens on the market and theres more being added every day, its very easy to get duped by hype and bad actors. I did not hit her. You know crypto projects that are basically scams in order to make the founders some quick bucks and then theyre gone, and sometimes they can do that with every without ever even showing their faces.

Wheres the money, lebowski and then the problem thats created here is. It becomes really hard for excellent crypto startups. You know the ones that are actually high quality to break through the noise of all these other garbage projects and stand out when they should stand out but theres. Just so many projects to filter through now launch pads are actually crypto projects in themselves, but because they have the name, recognition and the trust built up over time. Investors can use them as a filter because theyre effectively putting their neck out for a new crypto project and then that way, crypto projects get the benefit because they get a filter through all the noise and investors get a benefit because again, the noise is filtered through And ideally, the best projects stand out and shine among the rest now well get into some examples of the most popular launch pads in in 2021 in just a second. But first we need to take a second to explain how launch pads work and why. I think they could be better than the older, more familiar ico process, so launch pads like polka starter and binance launchpad each have their own tokens that are available for investors to hold and to trade. And then, when you hold the tokens of a launch pad, you become eligible to get early access to all of the projects hosted on a launch pad. So you can think of this kind of as like a private invitation system to invest into the new projects that they have done, diligence and they filter out so by holding a crypto token of a launch pad.

You show yourself to be this well intentioned investor, meaning someone thats willing to go long term on the projects that the launch pad supports. Now, one limitation, this process is that many launch pads have a kind of tiered system where often the largest holders. Of that launchpads token are given guaranteed positions in new projects, and everyone else on the lower tiers of investment are given lottery allocations. Some launch pads only offer lottery allocations. What this means is you arent always guaranteed to be able to invest in their supported projects, because that limited supply of early release tokens is either assigned at random or is reserved only for the participants of a launch pad that are most invested in that launchpad. But the more a launchpad launches new, successful projects, even if you dont, have access to invest directly into all of them. The price of that launchpads token has the potential to increase as well. So you kind of have this double potential of the launch pad token and new project tokens as well, where, if the launch pad is doing an excellent job in picking great projects, your token will go up. And if you are, if you have the opportunity to invest in one of those tokens, that also goes up, this kind of doubles the reward, but, of course that can also amplify the risk as well. The trick here is deciding how a launch pad could fit into your very own investing strategy, so consider how much youre willing to invest in just how far you can go to support new projects.

So if you have bricks of cash lying around that you want to put into new projects, and you have a high tolerance for risk – these are all very high risk. Then you know go ahead and get yourself a top tier spot in a launch pad. With guaranteed token allocations and youd be fine if you have fat stacks of cash and a high tolerance for risk, but that isnt the case for most people, so on the opposite side of the extreme. If you just want to get your feet wet with new projects, you could invest a little bit lower, go low tier with a launch pad and still be investing in the launchpads tokens without a whole lot of commitment, and you still would have some opportunity if the Lottery lands on your name to get some of the new projects as well, but still this is on the higher risk side of the spectrum when it comes to investing its crypto. Investing and startup crypto. Investing combined fun fact here, launch pads, sometimes launch other newer, smaller launch pads as well. So it kind of reminds me of those like russian dolls, where you open one and theres like a smaller one and then a smaller one. All the way down so so launchpads value to both investors and new crypto projects is that they create communities. These are platforms where investors can communicate with each other about what makes projects valuable and allows us all to gain insight into which projects have real potential.

So just again think filter filtering down into what may be the projects with the highest odds for success. But that does not guarantee success so now lets talk about some popular and interesting launch pads. So the first example that i want to give you is binance launch pad, so you know binance theyre, the largest crypto exchange platform on the planet. In january 2020. They announced that theyd launched a new token fundraising system, the binance launch pad platform and the first project whose tokens went on sale was of the file sharing platform bittorrent. The hype behind this launch was staggering, raising over 7 million dollars in less than 15 minutes. For the people in the back seven million dollars in 15 minutes its insane, they have since launched a host of other projects each of those projects raising millions of dollars in very short periods of time. Fetch ai was a binance launch as well. They brought in six million dollars in 10 seconds 10 seconds, so the biggest sell for investing in binance launch pad is reputation. If you ask me so, the buy and finance has a reputation to protect and, with this theyre, more likely to heavily vet projects that are coming on their desk. So before binance chooses to support a project through its launch pad a ton of research and project information. Are made available to users which, as a research person myself, i very much appreciate so each new project comes with its own report, where you can see how many tokens will be available at the launch, the stage of the development that the project is in and any Other information you might need – and this has honestly made me – consider starting my own launch pad because of my love for research and building communities – well, call it the maxi pad sorry so to participate in binance, launch pad offerings.

You need to be a holder of the bnb token and sign up each offering is slightly different, so youll want to take a look at the terms and conditions for each and binance will obviously recommend that youll look into each report before you decide to put your Money into those tokens – and i do too always do your own due diligence now not everyone is going to be able to invest in a binance supported project due to the high demand, though i mean, like we said, 6 million in 10 seconds, not everyone is able To get their spot and binance will likely remain one of the largest launch pads, especially with this kind of reputation, at least at least until the maxi pad comes out and were just going to squash that binance launch pad now. The next example that i want to talk about is truss swap what i like about truss swap is that they address a very specific problem when it comes to early investing. So often a new coin can get so hyped that its price just skyrockets within the first few days or the first few hours and then just dumps after the initial wave and, of course, this kind of activity is detrimental to new projects, even those with real value. You know an early drop in price. Has this psychological effect on investors that you see that drop, and then you just start thinking like? Oh this project is a dud and remember no one wants to buy a turd mid flush.

So were all worried about that. As investors, trustwop, though, has a few clever innovations in place to protect projects from immediate, sell offs and protect investors from empty promises made by over hyped projects. One example of this is how trust swap locks pre release tokens for a set period or theyll set staggering release periods to incentivize early buyers to hold this actually works out really well for all holders. So not only does the project get supported by early funding for long enough to meet its goals, but this also lets investors have confidence in the upwards price movement, meaning they dont feel like they have to sell because the project jumped by 100 because they know that Theres a bit of a lock theres mechanisms in place. This is very helpful if you have weak hands now. One possible downside to this kind of vesting is is if the project demand goes down, but the emissions schedule continues, meaning more and more coins are added into circulation, theres, this kind of inflation effect where that can still decrease the price. So, even if you do trust the launch pad that youve invested in, you always want to make sure youre aware of project specifics. So you know what can potentially happen in the future ill pin a video above on how to evaluate crypto projects that you definitely want to watch theres a checklist. Its very helpful now lets talk about the risks risk number one is the investment requirement.

So, even though launch pads, they make token pre sales more accessible than ever before, more accessible to the average retail investor. They still can be quite pricey. So, for example, take the launch pad polka starter. They require you to hold three thousand poll tokens pol tokens, which is roughly about four thousand us dollars before youre eligible to participate in launches, and that can price many retail investors out who it wouldnt be wise for them to invest four thousand dollars into a launch Pad into a brand new crypto project, if their portfolio isnt already diversified now speaking of diversified, the second risk comes with the business model of launch pads. So because these companies are in the business of incubating and supporting other companies, the launch pad itself becomes strongly affiliated with projects. So, like i mentioned earlier, if a launchpad has tons of successful projects on it, that launchpad is going to do better. The token is going to appreciate in price. The opposite is true as well. If they pick a couple duds that will decrease the value of the launch pad and the tokens that are held by investors. Now you can manage your exposure by investing in multiple launch pads, which of course, can get pricey due to minimum expenses or by choosing to invest at those lower tier levels. As always, you want to decide your strategy before you start investing now, for most people who are new to crypto or new to investing in general.

Investing into a launch pad may be getting ahead of yourself a little bit as it just takes experience to be able to evaluate and ask the right questions if youre brand new youre, not even going to think of the right questions to ask to determine if that Project is a solid investment for you now, of course, you could go with a trusted launch pad and just take their word for it whenever they release a new project, but i would not advise that at all, because i think you should always do your own research, But the good news is, you can focus your research efforts on popular launch pads and this will narrow down your choices. So, instead of having to look into a hundred project, you could maybe look into two or three and that doesnt take a whole lot of time. You also could join a private community like ours, linked down in the description through patreon, because myself and literally hundreds of other people are researching and talking about our findings on that group literally every single day, and that can save you hours and hours. If not days of time and effort, so in conclusion, crypto launch pads are one of the most popular innovations in the crypto space within the last year, and i can see exactly why i mean they have a way of cutting through the noise by investing in projects That they themselves have determined to be valuable, and then you get to determine of those like a filter within a filter of those which ones that you think you should invest in as well.

So they cut down on research time for adventurous investors looking to find that next 10x or even 100x potential project. They also allow the average investor and not just loaded venture capitalists, to participate in coin offerings on a level playing field which of course, i love theres. Fewer barriers to information and entry, now its important to consider five things before you buy into a launch pad project. First, what is the timeline of the project? Second, what is the release schedule for the tokens? Third, how much do i need to hold before i can participate in sales events? Fourth, do i believe in the team and the technology behind that project, and do i believe that they are solving a problem with money behind it and fifth, will i want to invest in more projects from this launch pad in the future? You want to know where you should allocate your funds. Unless you have unlimited funds, then you can just allocate them everywhere, but i dont think most people dont have unlimited funds thats a utility bill, not a money belt. Six million, seven million. Once youve answered these questions. For yourself, you can decide if investing in a launch pad is right for you or, if youd, rather go with more mature projects. So i hope this was helpful. Make sure you click that subscribe button.