Why Crypto Launchpads?
Just a few years back, most of the crypto projects conducted their sales directly on their websites. They distributed tokens to investors, through a process known as Initial Coin Offering (ICO). Investors had to hold the tokens until they got listed on an exchange. However, 90% of these ICOs turned out to be scams, and investors lacked the confidence to invest in such projects.
At the same time, crypto exchanges noticed and grabbed the opportunity to raise funds. They researched new projects and partnered to conduct a token sale on their exchange platform. Since crypto exchanges already have users and potential customers, this method worked out. This process of conducting new crypto token sales on exchanges is known as Initial Exchange Offering (IEO).
Then there came the advent of launchpads which have become the latest solution to offering a platform for fundraising blockchain projects. They offer opportunities to buy tokens of crypto projects through a process called Initial DEX Offering (IDOs). In brief, crypto launchpads are the platforms that help new projects by facilitating them to raise funds and allowing investors to buy tokens before they are publicly released.
The Problems facing Current Launchpads
Despite the increased interest and usage of crypto launchpads, the current structure appears inefficient and lacks transparency.
One of the major drawbacks of the current launchpads is short-term incentives.
They lead to an inevitable “one-and-done” mindset of management.
The project’s success on the launchpad might not lead to the long-term success of the token released.
In addition to this, the fundamental issues with the current fundraising model on crypto launchpads include:
- The Gatekeeper — Most of the current launchpads deploy a gatekeeper approach to select which projects can launch. They only focus on projects that meet their strict requirements. The gatekeeper approach can result in great projects missing the opportunity to launch.
- Centralization — They employ a centralized method of project fundraising for their native tokens. This approach could lead to launchpads prioritizing their needs and interests over projects that have trusted them.
- Lack of innovation — The model of fundraising operations on all the leading launchpad platforms is fundamentally similar, lacking real innovation.
- Community — After the public listing of a token, projects are left without a community because the existing customers of launchpads will move to the next offering.
- Lack of transparency — The centralized and permissioned architecture has led to a lack of transparency in the fundraising process conducted on these platforms.
- Shortcomings — New crypto projects have to deal with the shortcomings, inefficiencies, and manual processes of the launchpads.
These inadequacies veritably spurred the fast-paced experimentation and innovation in this space to provide lasting solutions.
The Only Solution
As a result, to give access to all and sundry, a fair opportunity to the disenfranchised, and a purely permissionless approach to facilitate fundraising, the entire team at DotVerse is excited to introduce to you the 1st Permissionless LaunchPad protocol on the Cronos chain
DotLaunch — a truly decentralized fundraising platform encouraging innovation and experimentation in the blockchain space designed to tackle all these pitfalls and shortcomings.
DotLaunch is a completely decentralized launchpad that drives ‘real innovation with the real community’. Built on the Cronos blockchain platform, DotLaunch facilitates fair access and opportunities for crypto projects to conduct efficient and transparent fundraising. Hence, any project can potentially raise funds on DotLaunch without any restrictions.
With DotLaunch, projects have complete flexibility and freedom to experiment and innovate. The projects can decide the size of the raise, auction mechanism, tiering, etc. Our community will also have the opportunity to invest in a variety of diversified blockchain projects.
Additionally, promising projects of high quality will be discovered and raised to the top after passing through our KYC channels.
‘‘In addition to being an IDO launchpad, DotLaunch is also a fundraising marketplace and is supported by a diverse ecosystem. The platform has created an ecosystem of projects, investors, incubators, advisors focused on long-term successes instead of just short-term hype. Overall, it is a permissionless, innovative approach to finding a fair value for projects and assets in the cryptocurrency ecosystem.’’
DotLaunch has made it simple for project developers to launch a token without any coding skills; anybody can design and launch their own token with only a few clicks.
DotLaunch will come with a number of added tools to assist you with the overall token launch. To boost investor confidence, options such as assisting with the listing of your token on pancakeswap and locking your LP, and creating a vesting time for your tokens are available.
Our goal is to benefit budding decentralized startups, by lowering barriers to entry.
Details of the launch date and tokenomics will be communicated via our socials. Be sure to follow up to stay up to date.
