Launchpad vs. Launchpool: How Binance’s Platforms Differ

Crypto investors may have heard terms like Launchpad and Launchpool time and again. But what are the differences between Binance Launchpad and Launchpool?

To understand the key differences, let’s first look at some background.

Since its inception in 2017, Binance has evolved into one of the leading cryptocurrency exchanges worldwide. The platform quickly grew a vast user base and today dominates the global crypto market by trading volume.

But, is Binance just a crypto exchange?

Binance is much more than an exchange. It has developed its own blockchain, Binance Smart Chain (BSC), which enables fast, low-cost transactions and supports decentralized applications (dApps). Additionally, Binance offers a variety of products that allow investors to access an extensive range of financial services, including both decentralized finance (DeFi) and more traditional financial offerings.

DeFi eliminates the need for intermediaries by executing financial services through smart contracts, which automatically trigger once pre-defined conditions are met.

Users familiar with Binance have likely encountered Binance Launchpool and Launchpad. Both platforms are designed to support and bring attention to innovative blockchain projects. They offer opportunities for early investment and often yield high returns for participants.

However, they function differently, which is essential for investors to understand.

Binance Launchpad is a platform for token sales (also known as Initial Exchange Offerings or IEOs), where users can purchase tokens for promising projects before they are listed on the exchange. Participation is often limited by a lottery system or based on the amount of Binance Coin (BNB) held by users.

On the other hand, Binance Launchpool allows users to stake their existing tokens (like BNB, BUSD, or other supported assets) to farm new tokens for free over a set period. In this model, the risk is relatively low because users retain ownership of their original assets while earning new tokens as rewards.

In conclusion, both Launchpad and Launchpool provide valuable opportunities for users to engage with emerging projects, but the approach and risks differ. Understanding these distinctions can help investors determine the best method to maximize their potential gains.

This guide should serve as a starting point for those looking to get involved but uncertain about where to begin.

What is Binance Launchpad?

First, it’s essential to understand the concept of Launchpad. In the cryptocurrency world, discovering early-stage projects can be challenging. Investors who get involved early often stand to gain significant returns, especially when the project takes off. However, finding these opportunities can be hit or miss without proper access. This is where platforms like Binance Launchpad come in.

Binance Launchpad is a token sale platform designed to help users access new and promising blockchain projects before they are listed publicly on exchanges. By providing a trusted platform, Binance reduces the risk of scams and offers a more secure way for users to participate in Initial Exchange Offerings (IEOs). Unlike traditional Initial Coin Offerings (ICOs), where the risk of fraud was significant, Binance vets the projects that appear on its Launchpad, making it a more reliable way for investors to support new ideas in the crypto space.

A key aspect of Binance Launchpad is its lottery-based system, which gives users holding Binance Coin (BNB) a chance to participate in token sales. The more BNB a user holds, the better their chances of winning an allocation in the token sale. This model has allowed many retail investors to get in early on projects that later become highly successful, providing the potential for substantial gains.

In recent years, Binance Launchpad has hosted several high-profile token sales, including projects like Polygon (MATIC) and Axie Infinity (AXS), both of which saw impressive growth after their launch. As a result, Binance Launchpad has become a go-to platform for both investors looking for new opportunities and startups looking to raise capital in a transparent, secure environment.

For crypto enthusiasts who are eager to discover the next big thing, Binance Launchpad offers a streamlined, more secure path to early-stage investments, helping users maximize potential returns while minimizing risks associated with unproven projects.

What Is a Launchpad in Crypto?

In the crypto space, a launchpad provides a platform for investors to participate in Initial Exchange Offerings (IEOs). An IEO is a crypto fundraising mechanism where a blockchain project gains the backing of a trusted exchange, which helps the project raise capital and provides credibility. This exchange acts as a bridge, allowing investors to discover and invest in early-stage crypto projects that have the potential to grow significantly.

Crypto launchpads serve as a gateway for investors to keep an eye on promising projects before they hit the mainstream market. This early access gives investors the opportunity to potentially secure substantial returns, as seen in the example of BitTorrent Token (BTT), which raised over $7 million within minutes of its launch and later became a highly valuable asset.

The advantage of using crypto launchpads goes beyond early access. Projects selected by reputable platforms like Binance undergo thorough vetting, ensuring that only legitimate and high-potential ventures are presented to investors. This additional layer of security helps reduce the risks typically associated with early-stage crypto investments.

Binance Launchpad, in particular, stands out as one of the leading token launch platforms in the market. It supports blockchain startups in raising funds, offering them not only access to Binance's extensive user base but also providing expert guidance and resources to help projects gain visibility and traction.

The success stories of Binance Launchpad are numerous, with some token sales delivering over 30x returns for early investors. By offering a trusted environment for discovering and investing in innovative blockchain ideas, Binance Launchpad has positioned itself as a key player in the growth of the crypto ecosystem.

What is Binance Launchpool?

Launched in September 2020, Binance Launchpool is a platform that allows users to stake their existing cryptocurrency assets and earn newly launched tokens as rewards, often referred to as "yield farming" or "staking rewards". This model provides a low-risk way for investors to get involved with new projects while retaining ownership of their original tokens.

Users can stake a variety of assets, including Binance Coin (BNB), Binance USD (BUSD), or other supported cryptocurrencies, in dedicated pools. In return, they earn new tokens over a set period, typically ranging from a few days to several weeks, depending on the project. This process makes Binance Launchpool an attractive option for investors looking to diversify their portfolios or earn passive income without having to buy new tokens outright.

One of the key advantages of Binance Launchpool is that it offers a no-cost entry point for users, as they don’t need to purchase the new tokens directly. Instead, they earn them by staking assets they already hold. This approach not only reduces the financial risks associated with purchasing tokens from unproven projects but also allows users to explore new opportunities without risking additional capital.

Since its launch, Binance Launchpool has been involved in numerous successful token launches, giving users early access to projects that have gone on to gain significant value. For instance, projects like Bella Protocol (BEL) and Alpha Finance Lab (ALPHA) were launched through Binance Launchpool, providing substantial returns to early participants.

For crypto enthusiasts looking for a more passive way to participate in the market, Binance Launchpool offers a straightforward and potentially lucrative way to earn rewards while supporting emerging blockchain projects.

How Does Launchpool Staking Work?

Launchpool staking involves committing crypto assets into a liquidity pool to earn rewards, typically in the form of newly minted tokens. This process is often referred to as DeFi yield farming, where investors lend their assets to decentralized finance protocols in exchange for returns.

The number of tokens users accumulate daily depends on the amount they have staked and the total number of tokens committed to the pool. In Binance Launchpool, rewards are calculated on an hourly basis throughout the staking period, allowing users to continuously earn tokens over the designated farming period, usually lasting around 30 days.

One key feature of Launchpool is that the new token becomes available for trading after just seven days of staking. At this point, users are free to trade the tokens they've earned so far. Additionally, they can redeem any pending rewards from the farming pool at any time, giving them flexibility and control over their holdings.

Since its introduction, Binance has supported approximately 20 Launchpool projects, with two currently in active farming periods. Collectively, 17 completed projects have distributed $85.3 million worth of tokens to participants. Farming pools have locked a combined value of $143.5 million worth of Binance Coin (BNB) and $5.46 billion worth of Binance USD (BUSD), Binance's official stablecoin, which serves as a key player in the platform's DeFi ecosystem.

The returns from Launchpool can be quite lucrative. On average, projects offer an Annual Percentage Yield (APY) of 24%, with some high-performing projects reaching up to 113% APY. The APY reflects the real rate of return on an annual basis, including the effects of compounding interest.

Launchpool provides immense value to its participants. For users, it offers a risk-mitigated way to earn rewards by simply staking assets they already hold. For projects, it helps raise funds and increase visibility, which is vital for growth, especially in the early stages of development.

While both Binance Launchpad and Launchpool drive growth for blockchain projects, they operate in fundamentally different ways. The next section delves into the operating principles that set these two platforms apart.

Binance Launchpad: Spearheading crowdfunding campaigns with IEOs

With the introduction of Binance Launchpad, the concept of the Initial Exchange Offering (IEO) was born—a fundraising model designed to provide both investors and blockchain projects with greater security and trust. The IEO format offers investors confidence by allowing them to participate in new cryptocurrency projects vetted and backed by a trusted exchange like Binance.

But how does this differ from Launchpool?

Before the advent of Binance Launchpad, most blockchain projects raised funds through Initial Coin Offerings (ICOs), which were often poorly regulated and prone to scams. This “carefree” approach left many crypto users vulnerable to losing their funds, as there were few safeguards in place. While some ICOs resulted in successful projects, the lack of oversight meant that users took on unnecessary risk without any guarantee of security.

Binance Launchpad and its IEO model introduced a more structured, secure way for blockchain startups to raise funds. Through IEOs, projects are thoroughly reviewed by Binance, which acts as a trusted intermediary. This helps ensure that the projects listed on Launchpad are legitimate, and that investors are better protected. For participants, the IEO process is simple and convenient, as they can purchase new tokens directly through the Binance platform without worrying about the risks associated with the more volatile ICO model.

Since its launch, Binance Launchpad has become a key platform in the crypto industry, providing significant benefits to the ecosystem:

Project Support: Binance Launchpad gives blockchain projects access to its massive user base, helping them raise funds and gain exposure to millions of potential investors. In addition, Binance offers mentorship and marketing support, ensuring that projects have the resources to succeed.
Investor Confidence: By offering IEOs, Binance provides a level of trust and security that wasn’t available with ICOs. Users can participate in token sales knowing that Binance has performed due diligence on the projects, greatly reducing the risk of fraud or failure.
Industry Growth: Binance Launchpad fosters innovation in the blockchain space by helping fund promising projects that drive the industry forward. Many projects that started on Binance Launchpad, such as Polygon (MATIC) and Band Protocol (BAND), have gone on to become major players in the crypto world.

Overall, Binance Launchpad has played a crucial role in revolutionizing how crypto projects raise funds, offering a safer and more reliable alternative to the ICO model. For both projects and investors, it has become a trusted platform that reduces risk and promotes growth within the cryptocurrency ecosystem.

Fair Distribution of Initial Token Offerings

In its early days, Binance Launchpad allocated project tokens on a first-come, first-served basis. While efficient, this method proved unfair as Binance’s user base rapidly expanded. The system heavily favored users with faster access, leaving many participants frustrated and unable to secure tokens. To address this imbalance, Binance upgraded its allocation process by introducing a more equitable lottery system.

How does the lottery system work?

When a new Initial Exchange Offering (IEO) goes public on Binance Launchpad, the platform first takes a snapshot of each user’s Binance Coin (BNB) holdings. This snapshot occurs over a specific period, which varies depending on the project. The snapshot period ensures that only users actively holding BNB tokens are eligible to participate.

Once the snapshot period ends, a "Claim tickets" button appears on the Launchpad interface, allowing eligible users to claim lottery tickets for the IEO. This button remains active for 24 hours, during which participants can confirm their lottery entries.

After confirming their tickets, the system randomly selects the winning tickets. Users with winning tickets are then able to participate in the IEO, purchasing the new project tokens using their BNB tokens. This random lottery mechanism ensures a more fair and transparent token distribution process, giving users a chance to participate regardless of their speed or connection quality.

The primary goal of the lottery system is to prevent any single crypto holder from monopolizing the initial token supply. By distributing tokens more evenly across a broader range of users, Binance creates a level playing field, ensuring that new projects gain the support of a more diverse and engaged community.

Overall, Binance’s lottery-based approach has made IEO participation on its Launchpad more inclusive, fostering a more equitable environment for both small and large investors. This method not only benefits individual investors but also contributes to the long-term success of blockchain projects by ensuring a wider token distribution from the start.

Exposure to the Wider Crypto Community

Every project that is listed on Binance Launchpad undergoes a rigorous audit before it is approved for public offering. Binance carefully evaluates each project to ensure it meets the platform’s high standards, safeguarding both the integrity of its ecosystem and the interests of its users.

Binance’s criteria to accept or reject a project include the project’s utility, long-term vision, the competence of the development team, and the potential for innovation. Projects that demonstrate strong fundamentals, real-world use cases, and a committed team are more likely to be accepted for token offerings on the Launchpad.

Once a project is approved, it gains immediate exposure across Binance’s vast ecosystem. This means that new projects are presented to millions of Binance users worldwide, creating a significant buzz and driving initial interest. The extensive visibility on Binance ensures that projects listed on the Launchpad offer genuine utility and have the potential for both short-term profits and medium- to long-term returns.

A prime example of such success is BitTorrent (BTT). After its listing on Binance, the token's price surged by over 300%, generating immediate profits for early investors. For those who held their tokens longer, returns exceeded 1000% in the months following the launch, showcasing the potential long-term benefits of participating in IEOs on Binance Launchpad.

Additionally, projects that qualify for token offerings receive considerable liquidity across multiple trading pairs, ensuring that tokens are accessible and tradable by a broad audience. Binance also provides 1:1 guidance through its listing and investment teams, offering personalized support to help projects maximize their success and contribute positively to the broader crypto community.

By featuring these projects on the Launchpad, Binance not only helps startups secure funding but also provides them with the tools, visibility, and community engagement needed to succeed. This holistic support system demonstrates Binance’s commitment to fostering innovation and growth in the blockchain space.

A Safe and Secure Platform for Token Launches

In any industry, emerging projects often struggle with a lack of support, resources, and promotion, making them vulnerable to various risks. In the crypto space, this vulnerability is amplified due to the prevalence of scams and malicious actors. Binance Launchpad addresses these challenges by providing a secure and reliable platform where new blockchain projects can raise funds without the fear of exploitation.

As the world’s largest and most active cryptocurrency exchange, Binance has invested heavily in security measures to protect both its users and the token sales it facilitates. Binance’s infrastructure includes advanced security protocols, such as multi-tier and multi-cluster system architecture, along with Secure Asset Fund for Users (SAFU), a reserve fund designed to protect users in the event of a breach.

Binance’s global reach gives new projects access to millions of crypto holders and investors who are eager to gain exposure to promising startups. This vast network not only provides liquidity but also helps projects gain visibility across the broader crypto community. The Binance platform is widely regarded as one of the safest in the industry, providing users with peace of mind while participating in token offerings.

With Binance Launchpad, users don’t have to worry about pulling their funds out due to security concerns. The platform’s rigorous vetting process and strong focus on security ensure that projects listed on Launchpad are trustworthy and credible. This removes a significant barrier to entry for both investors and projects, creating a secure environment for innovation and growth.

By offering a safe and secure platform for token launches, Binance continues to support the development of the blockchain ecosystem, fostering trust between investors and emerging projects.

Binance Launchpool: Providing Value with DeFi-Inspired Crowdfunding

In response to the rapid rise of decentralized finance (DeFi), Binance introduced Launchpool, a platform that allows users to stake their crypto assets and earn new tokens while keeping their original holdings secure. This DeFi-inspired approach gives users the opportunity to participate in the launch of new tokens without the need to purchase them outright.

Through Binance Launchpool, users can stake BNB, BUSD, or other supported altcoins into designated pools at no additional cost. In return, they earn newly launched DeFi tokens as rewards. This staking process not only rewards users for their participation but also broadens access to new token distributions without requiring upfront purchases.

By distributing DeFi tokens to a wider audience, Launchpool ensures that these projects reach a diverse and engaged user base. Crypto holders and investors benefit from attractive returns on their staked assets while gaining exposure to innovative projects in the DeFi space. This model of token distribution helps create liquidity for new tokens, driving broader adoption across the ecosystem.

Launchpool delivers value to crypto holders, communities, and the larger blockchain industry in the following ways:

Passive Income Generation: Users can generate returns by staking assets they already hold, allowing them to earn passive income without taking on additional risk.
Increased Accessibility: Launchpool democratizes access to new DeFi projects by allowing a wide range of users to participate in token distributions, making it easier for everyday investors to get involved in early-stage projects.
Ecosystem Growth: By supporting emerging projects, Launchpool contributes to the overall growth of the DeFi ecosystem, helping to drive innovation and create new opportunities for both users and developers.

Through Binance Launchpool, DeFi projects gain the support they need to thrive, while users benefit from a secure and rewarding way to participate in the next wave of blockchain innovation.

A Platform for Farming Tokens

Binance Launchpool offers a platform where users can stake their existing tokens into a pool and farm new ones without incurring any direct costs. This process allows participants to earn additional tokens over time, and the rewards are determined by the amount of tokens staked in relation to the total tokens available in the pool.

The daily token yield varies based on how much each user contributes to the pool. The more tokens staked, the higher the rewards—yet the rewards also depend on the total number of participants and the overall staking activity within the pool.

To participate in Binance Launchpool, users need to commit a minimum of 0.1 BNB or any other supported tokens, depending on the specific pool. Trading for the newly earned tokens typically begins on the seventh day of farming, providing early liquidity for participants. Users can continue trading and earning rewards for about 30 days from the start of the farming period.

A unique feature of Launchpool is the flexibility it offers: any pending tokens earned during the farming process are redeemable at any time, allowing users to take advantage of price movements or cash out their rewards without being locked into long-term commitments.

This flexible, no-cost approach to farming has made Binance Launchpool an appealing option for users looking to passively grow their crypto portfolios while supporting new blockchain projects.

Growth and Exposure for Qualified Projects

Similar to Binance Launchpad, Launchpool is designed to support early-stage crypto projects with strong potential. By featuring these qualified projects, Binance provides them with unparalleled exposure to millions of users across its global platform. This exposure can significantly accelerate the growth and adoption of the projects, giving them access to Binance's extensive network of traders and investors.

In addition to visibility, Binance offers project teams access to its comprehensive support system, which includes marketing, strategic advice, and technical assistance. This level of backing helps projects overcome common challenges associated with early development, enabling them to grow more efficiently and reach a wider audience.

One of the secondary effects of Launchpool is its ability to foster stronger communities around these projects. By allowing users to earn tokens through staking, Launchpool generates early interest and engagement, creating a dedicated user base even before the token is widely traded. This community support is crucial for the long-term success of many blockchain projects, as it helps build trust and enthusiasm.

Moreover, some of the top-performing projects on Binance Launchpool have achieved 44x growth in token value, giving users who staked their assets access to tokens that are largely available for free. This massive potential for returns further underscores the value that Launchpool brings to both users and emerging projects in the crypto ecosystem.

Earn New Tokens While Safekeeping Your Existing Assets

With Binance Launchpool, users have the opportunity to earn new tokens while maintaining control over their existing digital assets. The rewards are calculated hourly for a set period from the moment of staking. As mentioned, users can harvest or redeem their earnings at any time during the staking period, providing flexibility and ease of use.

Launchpool serves as an ideal platform for users looking to farm new tokens by depositing their crypto holdings into the pool. At the end of the staking period, the original amount staked is returned to users in full, along with any rewards earned. Additionally, users retain the option to un-stake their tokens at any time, giving them control over their assets throughout the process.

To participate in Launchpool, users first need to connect their wallet to the platform and check the available tokens for staking. Once connected, they can easily stake their tokens in supported pools.

Within the pool, users are required to hold at least 0.1 BNB or another token accepted by the pool. Users maintain control over their tokens and can withdraw them whenever they wish, adding another layer of security to the staking process.

Each Launchpool project supports different staking pools, which vary from project to project. However, users can always visit the specific Launchpool page of a project to view the list of supported pools. They can also see the Annual Percentage Yield (APY) of each pool once trading opens for the token they aim to earn. This transparency allows users to make informed decisions based on the potential rewards and returns.

Additionally, BNB users who stake in Launchpool enjoy extra benefits such as airdrops—free token distributions for supporting specific projects—and VIP benefits, which may include early access to new projects or exclusive features. Airdrops are a common way for projects to reward loyal supporters, while VIP benefits further incentivize participation.

Binance rewards users who engage with their centralized services, as opposed to pure DeFi platforms. However, this incentivization model is not unique to Binance; platforms like CoinMarketCap and CoinGecko adopt similar strategies to encourage user participation and loyalty.

For those interested in exploring upcoming projects on Launchpool, Binance Research provides detailed reports and insights, helping users stay informed about the latest opportunities in the ecosystem.

Launchpad vs. Launchpool: Getting Started

When it comes to return on investment, Binance CEO Changpeng Zhao and his team have created a highly profitable niche within the crypto ecosystem. Almost all Initial Exchange Offerings (IEOs) on Binance Launchpad have proven to be exceptionally lucrative, with token offerings selling out in mere seconds due to high demand.

Similarly, Binance Launchpool has attracted hundreds of thousands of users eager to stake their tokens and earn rewards. Both platforms provide opportunities for users without imposing hidden fees, ensuring that the IEOs hosted on Launchpad are just as transparent as the staking process on Launchpool.

For savvy investors, both platforms offer multiple opportunities to achieve higher returns. Whether participating in early-stage token sales on Launchpad or staking in Launchpool, users can choose the approach that best aligns with their investment strategy. Many new users might wonder, "How do I get started with Launchpool"?

To begin using either Launchpool or Launchpad, first-time users must sign up and create an account on Binance. As part of Binance’s security and compliance measures, users may also need to complete Know Your Customer (KYC) verification before participating. Once their account is set up, getting involved is as simple as logging into the platform, checking for any ongoing promotions or active pools, and choosing where to allocate their tokens.

For those looking to maximize their returns in the crypto space, Binance’s Launchpad and Launchpool provide trusted, user-friendly platforms that cater to both seasoned investors and newcomers alike. With just a few clicks, users can gain access to some of the most promising projects in the blockchain world

Please note that Plisio also offers you:

Create Crypto Invoices in 2 Clicks and Accept Crypto Donations

12 integrations

6 libraries for the most popular programming languages

19 cryptocurrencies and 12 blockchains