Binance Launchpad

Binance Launchpad is a token launch platform that enables cryptocurrency projects to raise funds and gain exposure by conducting initial token offerings on the Binance exchange.

What is Binance Launchpad?

In this article we want talking about Binance launchpad and that’s features. Some companies need initial capital to bring their desired projects to the operational stage, and this capital can be obtained through various means. Typically, startups face significant difficulties in securing the necessary finances for their projects.

In most cases, the owners of these startups lack the appropriate capital to bring their ideas to fruition. On the other hand, obtaining a loan from a bank or attracting investment from companies or individuals for ideas that involve risks can be challenging. In the world of digital currencies, there are concepts related to this, and in this section, we will discuss concepts such as “initial offering” and “launchpad.”

Initial Coin Offering (ICO)

With the emergence of blockchain technology and its widespread adoption, various businesses have started ideating within this technology’s domain. To attract suitable capital for their projects, businesses have introduced a new method called Initial Coin Offering (ICO).

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In this method, blockchain-based businesses create tokens or cryptocurrencies specific to their projects and introduce them on a website for pre-sale to investors before launching the project. Individuals from around the world can purchase these tokens using cryptocurrencies like Bitcoin, Ethereum, or even dollars, effectively investing in the desired project. These initial offerings often take place on the Ethereum blockchain using smart contracts.

When the project succeeds, the value of the purchased tokens increases, allowing participants in the initial coin offering related to a business to sell their tokens at a higher price and profit, or use the tokens for accessing the business’s services at a lower cost in the future. Through this method, businesses can secure the funds they need without selling shares and maintain complete control over their financial operations.

If you are interested in getting more information about blockchains, we recommend you to read the Javizen article about Blockchain introduction.

How it works?

The speed at which capital is raised through this method is very high, as there are no strict regulations and laws governing it. However, this lack of regulation has also opened the door for many fraudsters to create websites with false information and attract numerous individuals without any actual project, profiting through deception.

On the other hand, investors can lose their assets if they invest in a fraudulent ICO. Thus, while participation in an ICO can yield substantial profits, there is also a risk that an investor may lose their entire investment in a fraudulent ICO.

Initial Exchange Offering (IEO)

To address the numerous scams that emerged in Initial Coin Offerings (ICOs), a new solution called Initial Exchange Offering (IEO) was introduced. In this method, a reputable exchange like Binance takes responsibility for raising capital for a business by selling its tokens.

binance launchpad - Javizen Blog

How it works?

In this approach, the exchange thoroughly examines the plans and objectives of a business for a specific project and conducts the necessary research to ensure their accuracy. They collaborate only with businesses that have sufficient credibility and have undergone identity verification on the exchange. This minimizes the risk and safeguards the investors against fraudulent activities.

On the other hand, businesses benefit from this because, with the presence of a multitude of users on reputable exchanges like Binance worldwide, they can easily raise the required capital. In the ICO method, the business management team controls the capital-raising process and often requires advertising expenses to attract investors.

In contrast, in an Initial Exchange Offering, the exchange manages the token sale and capital acquisition process, and, in return, takes a percentage of the initial token sales as its share.

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