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If you are a holder of cryptocurrency or trade in cryptocurrency, then you must know about Binance Exchange.
Binance is the largest cryptocurrency exchange in the world in terms of volume. Every crypto project that is available for trading on Binance must be a good project for the long term as well as for trading because Binance won’t list shitty projects on its platform.
There are three ways Binance lists cryptocurrency projects on their platform: Direct listing, Launchpad, and Launchpool. Launchpad and Launchpool are often profitable for users.
In this blog post, we’ll discuss how Binance Launchpad and Launchpool work and the key differences between Launchpad and Launchpool.
What is Binance Launchpad?
Binance Launchpad is Binance’s platform, on which it offers an IEO (initial exchange offering) for new crypto projects.
It is very difficult for users to find new genuine crypto projects for investment, so Binance came up with Binance Launchpad and Launchpool.
Users just need to commit their BNB for participating in Launchpad, and then at the end of their subscription or on the listing date, they will get tokens of that crypto in exchange for BNB. The amount of token allotment depends on how much BNB they have committed. More of the BNB amount committed will increase the chance of getting more token allotments.
Launchpad tokens easily go 10–25x after listing.
What is Binance Launchpool?
Binance Launchpool is a platform for new projects in which users can earn tokens of new projects by staking Cryptocurrencies like BNB, FDUSD, and TUSD.
This is beneficial for both Binance and crypto projects to increase their reach to more and more users.
Launchpool is ideal for those users who want to earn passive income by staking specific Cryptocurrencies.
There are many liquidity pools, like BNB, FDUSD, and TUSD, in the launchpool. You can stake any of these Cryptocurrencies to earn new tokens, but my observation is that you’ll earn more if you stake BNB as compared to FDUSD and TUSD.
How Binance Launchpad and Launchpool work
- New crypto projects apply for Binance Launchpad on the Binance website.
- Binance then thoroughly examines the crypto projects. If they pass all the aspects, then Binance will announce a new listing on Binance Launchpad.
- Now it’s a one-week process in Launchpad.
- Users need to commit their BNB after the preparation period, during which user BNB balances will be calculated in hourly snapshots for each day over a six-day period. The user’s final average daily BNB balance over these six days will determine the maximum amount of BNB that a user can commit later on.
- One day before the listing date, users need to subscribe.
- At the listing date, they will get tokens of the new crypto project according to the BNB amount committed.
- After listing, you can sell those tokens, which almost trade at least 10x above as compared to the price you got on Launchpad.
- New crypto projects register for Launchpool on the Binance website.
- Binance will strictly check all aspects of that crypto project and then accept or reject it.
- After accepting, Binance will announce a new listing on Binance Launchpool.
- The whole process takes almost 30 days.
- Users can stake any of the cryptocurrency that is available in the liquidity pool for 30 days.
- After almost 7 days, Binance will list that crypto project. You can sell the 7-day-earned amount on the day of listing by just claiming the amount in Launchpool.
- You can stake in liquidty pools for 30 days to earn more rewards.
Binance Launchpad vs. Binance Launchpool
|Binance Launchpad||Binance Launchpool|
|First listing on Binance only.||On the listing date, many exchanges will list simultaneously.|
|Users will get new tokens in exchange for BNB.||Users will get new tokens free of cost by just staking.|
|Usually, launchpads are more profitable.||Launchpool is often less profitable as compared to Launchpad.|
|Only BNB supported for commitment.||Users can stake BNB, FDUSD, and TUSD, or they can check the liquidity pools for real-time updates.|
|7-day process.||30 days process, but listing of project happens after 7 days.|
|The frequency of listings on Launchpad is low. Only very few tokens will get a chance on the Binance Launchpad list.||The frequency of listings on Launchpool is high as compared to Launchpad.|
Cryptocurrencies are very volatile, so always do your research before investing. At the date of listing, all projects are subject to high volatility, so stay away for a few days if you want to invest your money in those projects.
Binance Launchpad and Launchpool are very beneficial for Binance, as their native cryptocurrency, BNB, gets hype before any listing on Launchpad and Launchpool.
In my opinion, if you want to participate in Launchpad and Launchpool, then only participate if you are a holder of BNB. Don’t buy BNB after the announcement of Launchpad and Launchpool because after listing, the BNB price usually drops.
If you have any doubt regarding the Binance Launchpad and Launchpool then do let us know in comment section below. Thank you.
Are Binance Launchpad and Launchpool really profitable?
If you are a holder of a large amount of BNB, then yes, they are profitable, but if you buy at the time of Launchpad, then there is a risk of volatility after Launchpad ends.
Which cryptos can be used for farming on Binance Launchpad and Launchpool?
BNB is used for Launchpad, and FDUSD, TUSD, and BNB are used for farming in Launchpool.
Why is BUSD no longer supported for farming in the Binance Launchpool?
Binance is no longer supporting BUSD as Paxos has halted the minting of new BUSD.
How much of a percentage reward can we earn on Binance Launchpad and Launchpool?
It depends on the tokens available for reward and the total staked amount by users. They will proportionally distribute the amount. More staking by a user means he’ll get more rewards.