What are launchpads and why should you care?
TL-DR: This is a primer for anyone curious about the potential that launchpads bring to the crypto world, how Seedling aims to capitalize on this potential, and how you can get involved early in our upcoming SDLN token launch
The IDO of our Seedling token ($SDLN) is only a few days away, and in this post we explain in simple terms why our platform will be a dynamic part of the blockchain landscape.
At the end of this article you can find more details of the upcoming SDLN sale, but first let’s look at why so many people are excited about the disruptive potential of crypto launchpads.
Launchpads: An Essential Element in the Growth of the Crypto Sector
Prior to 2017, most crypto start-ups raised funds for project development by distributing their coins, at set prices, directly to investors. Usually, this involved projects using their own websites to raise funds this way. This process was termed an Initial Coin Offering (ICO); a reference to the Initial Public Offering which serves a similar fundraising function within traditional finance. In the ICO context, once investors purchased these tokens they would have to wait for them to be listed on crypto exchanges.
Sadly, this innovative approach had downsides in that many ICOs turned out to be scams or failures, swindling investors out of their hard-earned cash. One of the problems that contributed to the flourishing of these scams was a lack of knowledge among many investors — the required market savvy to analyse crypto projects to successfully differentiate good from bad projects. As a result, many investors lost out to fake or failed crypto projects.
The existence of such a widespread problem led to the innovative idea of launchpads as a way to prevent ICO frauds. Here we’ll look at what launchpads are and why they’re beneficial, and why the Seedling launchpad will form an integral part of the Cherry ecosystem
A Launchpad is a platform which allows cryptocurrency start-ups to raise funds for development before any public sale. These organizations discover at an early stage those projects which have huge potential for success, before they enter the mainstream. Although exchanges are popular in raising funds for crypto projects, there are also other independent platforms that provide the same service with much success.
When centralized exchanges (CEXes) conduct token sales, we call the process the Initial Exchange Offering (IEO). If decentralized exchanges (DEXes) carry out the same process of conducting token sales before public release, it is called an Initial DEX Offering (IDO). However, in addition to these types, we have other organizations, which are not DEXes or CEXes, which conduct the token sales and are, therefore, also Launchpads. For example, Seedling is a dedicated Launchpad for high-potential tokens.
Why are Launchpads Popular?
From the time of their inception, Launchpads have garnered much success because of the way they reduce risks related to investing in new crypto projects. The main reason for this is that they prevent fraudulent ICOs, wherein investors can lose a lot of money. This is because Launchpads vet their crypto start-ups and present only the best to investors.
Whereas launchpads reduce risks for investors, they also increase opportunities for the project that’s launching. Significantly, launchpads give regular investors the chance to invest in projects which have been traditionally reserved for venture capitalists (VCs) and other well-funded business entities.
For project owners, the other major benefit is that Launchpads have large bases of potential investors, increasing the chance of raising investment within a short period. In addition, Launchpads help to create and foster large communities for their associated projects. Usually these communities intertwine, which creates a greater network effect.
There is another additional advantage which Launchpads bring to the crypto sector: they enable anyone to purchase any amount of tokens, for which there are often guaranteed returns. After analyzing all these factors, it’s clear that launchpads have lowered the barrier to entry for startups and investors alike.
How Launchpads Work
Initially, Launchpads get proposals from various crypto projects wishing to list on their platforms. The projects are then filtered for legitimacy through careful background checks and verifications.
In addition, Launchpads utilise a priority system in the way they distribute tokens. With this system, large shareholders participate in the guaranteed projects while smaller shareholders go through a more restrictive lottery system. The Launchpads can also incentivize their users through providing them with unique tokens, which investors can distribute among various other crypto projects listed by the Launchpad. This is exactly what Seedling will do, rewarding its users with its native token, $SDLN.
Seedling Launchpad’s Role
Aside from being a standalone competitive platform in the launchpad market, Seedling also has a unique advantage: it is the first launchpad dedicated to launching projects across the Cherry Network which build on the Cherry stack. But it does not end there, Seedling will also launch them on many other popular blockchain networks such as Avalanche, Ethereum, Polygon, Binance Smart Chain and Fantom, among others.
The Cherry Network is a promising backbone for new projects. It comprises a layer one blockchain which connects smart contracts with decentralized file storage. The main benefits of using this network include fast transactions, low gas fees and high security.
Looking to the future of crypto fundraising
In a nutshell, Launchpads are becoming important players in the DeFi space. They have enabled an environment in which new and promising tokens can achieve market success in a short time. Furthermore, they reduce investment risks and support the growth of individual projects and the overall blockchain space. Seedling fulfills a pivotal role for projects in the Cherry ecosystem as a native launch platform they can leverage. In this way, Seedling will further the Cherry vision of creating a more efficient and open blockchain landscape.
Join the Seedling launch
If you want to be part of the Seedling journey, join the whitelist on the Seedling site for the $SDLN token sale now, or on the DAOstarter whitelist page.
The whitelist is live on these 2 platforms and the Seedling team will never approach you asking for your details. As always, please be conscious of scammers pretending to work for projects to steal your funds.
Seedling seeks to redefine venture capital investments by providing a simple, decentralized interface where early stage startups and enterprising investors can interact safely and effectively.
Seedling hosts premier token sale opportunities across a variety of blockchain networks including Ethereum, Binance SmartChain, Polygon, Fantom, Tron, Avalanche, and Solana. Our cross chain capabilities are powered by Cherry Network’s interoperability channels.
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