What are Web3 Launchpads & How Do They Work? A Comprehensive Guide

tl;dr

• Web3 launchpads evolved from early crowdfunding and ICOs to offer structured Initial DEX Offerings (IDOs).
  
  
• Launchpads help new blockchain projects raise capital and launch tokens by connecting them with investors and offering support.
  
  
• Projects are vetted by launchpads (whitepapers, tokenomics) and receive aid with fundraising, marketing, and the IDO.
  
  
• Launchpads suit projects needing funds/community and high-risk tolerance investors who conduct thorough research.

Introduction: The Rise of Web3 & the Need for Launchpads

Many of the earliest and most successful Web3 projects began through crowdfunding. A prime example is Ethereum, which conducted a groundbreaking crowdfunding campaign from July 20th to September 2nd, 2014. During this period, 60 million ETH were sold in what is now known as the Genesis issuance, the first ETH tokens ever created. This campaign helped lay the financial foundation for Ethereum’s development and set a precedent for decentralized fundraising.

In 2017, as Bitcoin surged to new highs, the Initial Coin Offering (ICO) boom took off. ICOs enabled anyone to launch a token and raise funds. While this led to the birth of major projects like BNB, Cardano, and Toncoin, it also attracted a wave of low-effort projects and outright scams. Many of these tokens never saw exchange listings, and the lack of investor protection led to significant losses. The collapse of the ICO trend marked the end of that particular bull cycle.

While traditional ICOs have faded, crowdfunding remains a key part of the Web3 ecosystem. Today, most fundraising is conducted via Initial DEX Offerings (IDOs), where tokens are launched on decentralized exchanges shortly after the Token Generation Event (TGE). This evolution brought new tools for accountability. Launchpads now play a critical role in vetting projects, guiding token launches, and reducing the risk of fraud.

What is a Web3 Launchpad? Demystifying the Concept

A Web3 launchpad is a digital platform that helps new blockchain projects raise capital and launch their tokens. These platforms serve as intermediaries, connecting early-stage projects with investors while offering the technical and marketing tools needed for a successful token launch.

The primary purpose of a launchpad is to streamline the fundraising process and offer vetted, early investment opportunities to the community. By requiring users to hold or stake native tokens to access token sales, launchpads align community incentives with project success.

Key features include community-driven project selection, token-based access tiers, early investor entry at discounted rates, and built-in security measures like KYC and smart contract audits. Launchpads also offer post-launch support, liquidity provisioning, and marketing outreach, making them essential infrastructure in the Web3 ecosystem for both creators and investors.

How Do Web3 Launchpads Work? A Step-by-Step Breakdown

Web3 launchpads are structured platforms that support both blockchain projects seeking funding and investors looking for early access to tokens. The process involves two main sides: the project team and the investors. 

For Projects

Projects begin by applying to a launchpad, submitting detailed materials like whitepapers, roadmaps, and tokenomics. The launchpad team performs in-depth vetting, reviewing the project’s innovation, technical soundness, and team credibility. 

Once approved, projects set clear fundraising goals and define token supply, utility, and vesting terms. Launchpads assist in marketing and community building to ensure strong engagement before launch. 

When ready, the project’s token is offered through an IDO with the launchpad handling all technical aspects. Post-launch, projects often receive ongoing support, including exchange listings, liquidity provisioning, and community management.

For Investors

Investors join the launchpad and complete KYC/AML verification if required. To participate, users typically stake or hold the platform’s native token, which may grant access via tiered or lottery-based systems. 

Once eligible, they buy tokens during the sale window. Purchased tokens are occasionally subject to vesting schedules, aligning long-term interest between investors and the project.

Understanding the Different Types of Web3 Launchpads

Web3 launchpads come in various types, each catering to specific project needs.

Blockchain-specific launchpads focus on one network, such as Ethereum, BNB Chain, or Solana, offering deep integration and community alignment. Niche-specific launchpads target particular sectors like GameFi, DeFi, or NFTs, providing tailored support and investor interest within those verticals. 

Multi-chain launchpads, on the other hand, support projects across multiple blockchains, offering greater flexibility, wider exposure, and cross-chain compatibility.

Navigating the Risks and Challenges of Web3 Launchpads

Web3 launchpads offer exciting opportunities for early-stage investments and project growth, but they also come with inherent risks and challenges for both investors and project teams. Understanding these risks is crucial for making informed decisions and setting realistic expectations.

For Investors

For investors, one of the main challenges is the high volatility of token prices post-launch, which can lead to rapid capital loss. Even with thorough vetting, there’s still a risk of scams or rug pulls, where malicious projects disappear after raising funds. Token vesting schedules and liquidity limitations can further restrict investors from selling their tokens immediately. 

As such, it’s vital for users to conduct independent research (DYOR), carefully reviewing project fundamentals, team backgrounds, and community activity before participating.

For Projects

For projects, gaining acceptance on a launchpad can be competitive, requiring a strong team, compelling vision, and thorough documentation. Once accepted, there’s immense pressure to deliver on roadmap promises and maintain investor trust. 

Additionally, market sentiment can impact token performance post-IDO, regardless of the project’s fundamentals. A poorly timed launch or bearish market conditions can result in disappointing price action, adding strain on the team. 

Navigating these challenges successfully requires strategic planning, transparency, and active engagement with the community.

IDOs vs Fair Launches: Key Differences

Fair launches and IDOs both offer ways to distribute tokens in Web3, but they serve different purposes and audiences. 

Fair launches, popularized by platforms like Pump.Fun on Solana allows anyone to instantly create a token with no presale, no team allocation, and no insider advantage. The price of the token rises through a bonding curve as more users buy in. Most of these tokens are memecoins, with little or no utility, and while the process is democratic, it lacks quality control, leading to high failure and scam rates.

IDOs, on the other hand, are structured fundraising events hosted on launchpads across various blockchains. Projects must apply and pass a vetting process that examines their team, tokenomics, roadmap, and vision. Investors often need to stake launchpad tokens or pass KYC checks to participate. Token sales are typically tiered and include vesting schedules to reduce sell pressure. 

Unlike fair launches, IDOs generally support more serious and utility-driven projects.

Are Web3 Launchpads Right for You? 

Web3 launchpads can be a powerful tool if you’re launching a new blockchain project, offering access to funding, marketing support, and a ready community of users. 

However, for investors, they are best suited for those with a high risk tolerance and a solid understanding of the crypto space. Early-stage projects can yield significant returns, but they also carry risks like volatility, scams, or underperformance. If you’re an investor, always do your own research (DYOR), assess tokenomics, team credibility, and community strength before participating in any launchpad offering.

FAQ

What is an IDO?

An IDO (Initial DEX Offering) is a type of token sale where a project launches typically via a Web3 launchpad, allowing investors to buy in early.

Is Investing via Launchpads Safe?

While launchpads conduct vetting, risks remain. Scams, rug pulls, and project failures can still occur. Always do your own research before investing.

How Much Can I Earn from a Launchpad Investment?

Returns vary widely. Some projects see large gains, while others underperform. Launchpad investments are high-risk and not guaranteed to be profitable.

What are Some Popular Web3 Launchpads?

There are many blockchain-specific and multi-chain launchpads. Some well-known launchpads include Binance Launchpad, ChainGPT Pad, and DAO Maker.

Do I Need Crypto to Participate in a Web3 Launchpad?

Yes, launchpads require you to use cryptocurrency (like ETH, BNB, or USDT) to purchase tokens or stake for access.