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Matvey Peskhehodko
21 February 2024
Обновлено 21 February
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Multiplying Capital: How Binance Launchpad Works

In March 2022, Stepn started from the Binance launchpad. There, you could buy the GMT token for 1 cent. Two weeks later, it was worth 2 dollars.

Users were earning x200 with minimal risks.

Let’s understand the phenomenon of launchpads and launchpools and find out the difference between them.

What is Binance Launchpad

Binance Launchpad is an internal platform of the Binance exchange. The launchpad helps crypto startups find early buyers for their cryptocurrency. Before trading starts on the exchange, the startup launches on the launchpad and sets a low starting price for the token. To buy the project’s token at this price, users hold BNB, BUSD, subscribe to the startup’s social networks, or perform other tasks. These are set by the launchpad.

Everyone wins from this - Binance becomes an early investor in the project and encourages users to buy its BNB token, the startup gets financial support and hype among crypto buyers, exchange users - buy tokens at a low cost, and sell as soon as trading starts on the exchange. Earning on the exchange rate difference. Due to the low starting price, the risks become minimal for long-term holders of BNB.

Why does the price of a token from a launchpad increase

New tokens are launched on launchpads. They are not yet traded on other crypto exchanges. Limited supply creates a large number of people wanting to buy a new project’s token. Launching with Binance Launchpad, projects get the support of the exchange, which means users will trust the startup more and want to buy the token even more.

What the difference between Binance Launchpad and Launchpool

So what is Launchpool?

If on the launchpad we get the right to buy a new cryptocurrency for fulfilling various conditions: lock another cryptocurrency, or subscribe to social networks, then on Launchpool we get tokens by reserving BNB or BUSD.

On the launchpool, tokens are not spent, you will get them back in full at the end of farming. The farming period lasts 30 days. After the first week of the start, the token is listed on Binance. You will be able to immediately exchange the received tokens for others, for example, USDT.

Memorise it:

  • On the Launchpool, we stake BNB or BUSD. For each day in staking, we get a new token.
  • On the Launchpad, we perform tasks, and get the right to purchase. Usually, you just need to keep BNB on the exchange balance.

At the same time, tokens staked in the launchpool can be used on the Launchpad. Such a symbiosis.

How to participate in Binance Launchpad

To participate in a project on the launchpad, you need to buy and hold BNB tokens.

The more BNB tokens you buy and hold on your balance, the more tokens of the new project you can buy.

At the same time, you can trade BNB tokens at this time and even stake them on the launchpool at the same time. The main thing is that during the subscription period for a new project, your BNBs are inside Binance.

Each project on the launchpad goes through stages:

  1. Holding calculation period - During this period, BNB tokens on your balances are counted every day. Usually 7 days.
  2. Subscription start - You see the allocation amount and make a decision to participate. You have 3 hours for this.
  3. Calculation period - You buy out the allocation. A part of BNB is withdrawn from your balance for purchase.
  4. Token distribution - The new token is sent to your spot balance.

After that, within a few hours, the token is listed on the exchange. Trading begins, and it acquires a market value. It will be many times higher than your purchase price.

Where to watch the next projects

Page with projects and statuses on them - link

If you go from the main page, then look here:

It will take us to the page where Launchpads and Launchpools will be held. Projects visible on the page are active.

How to use Launchpool

Let’s consider the new Launchpool, Mines of Dalarnia.

First, the basic concepts:

  • Total BNB Pool Rewards - how many new tokens are calculated for rewards for depositors into this pool.
  • Staking token - which token we are staking.
  • Farming Period - for what period we are investing our funds.
  • Total pool rewards in DAR tokens - How many total rewards participants have received over the past time.
  • Total BNB held - How much BNB is currently invested by other participants.
  • Annual Percentage Yield - How many percent in new tokens you will receive.

Now let’s try to participate. Two pools are available here - BUSD Pool and BNB Pool. In each of them, we will be investing the selected currency.

Let’s choose the BNB Pool and click Stake - we will invest our funds to start farming new tokens.

Now all we have to do is enter how much we want to invest and click Stake again.

Past hour APY will show us the percentage of tokens accrued.

Great, we have staked the tokens. They can be returned at any time by clicking Redeem. On the right side of the page, it will show how many tokens we have farmed. The timer at the top of the page shows that farming will start in 13 hours. After it expires, DAR tokens will start to drip to us.

You spend nothing to participate in Launchpools and can withdraw your funds at any time, so it’s a great solution if you have idle balance.