Bitcoin

Where Do Bitcoin and Crypto Launchpads Intersect?

Discover crypto launchpads and their evolution from ICOs to meme coin platforms. Learn about popular platforms, including the potential for Bitcoin integration with the help of Bitfinity.

One of the most beneficial aspects of crypto is the raising of funds that can happen worldwide. With several approaches tried, including the first ICOs (Initial Coin Offerings), that brought Ethereum to life, the approaches to raising funds came with also many fraudulent actors, front-runners and technical issues.

It is important to note that many such tokens may lack long-term utility, be subject to extreme price volatility, and in some cases, carry a heightened risk of fraud or operational failure.

Peer-to-peer funding was promised, that's why we saw the evolution to a new funding model—the launchpads. Today we take a look at crypto launchpads, their different types, how they work, and whether this could come to Bitcoin as well.

What Are Launchpads?

To start off, crypto launchpads are platforms designed to facilitate the introduction and funding of new crypto/blockchain projects. They serve as intermediaries connecting investors with early-stage crypto projects and startups, where funds can be raised and tokens distributed before officially and publicly launching.

Crypto launchpads connect projects with a large pool of investors and allow for easier and more efficient fundraising. The most recent launchpads even let anybody create and launch a token in minutes without any coding needed.

Tokens accessed via launchpads may be subject to lock-up periods, inflation risks, and liquidity constraints. Not all launchpads provide secondary market access or vet projects to FCA standards.

Throughout our short history, several types of launchpads have become mainstream, each built with mechanisms tailored to the specific models the soon-to-be-launched projects need. Therefore, let us look at each one in particular...

Different Pads to Launch From...

With the main ones that we understand and maybe have encountered are:

Initial Exchange Offering

An IEO, short for initial exchange offering, which is a launchpad owned and supported by an existing centralized crypto exchange. Token sales occur on the exchange which acts as the intermediary between investors and a project.

While this model provides some extra legitimacy for projects (depending on the exchange's reputation), exchanges research before tying their name to it. Also, most of the time everyone involved must complete KYC (Know Your Customer) procedures, which adds security and regulatory compliance.

After a successful token offering, the exchange distributes the tokens to users on pre-set schedules. The exchange might even offer a market to trade them, but not always.

Initial DEX Offering

With initial DEX offerings we see a similar operation as IEOs, where the key difference is that, unlike the previous one, where funding is carried out in a centralized exchange, this all happens on a decentralized exchange.

Given that DEX are decentralized (and have no intermediaries), the token allocation and token distribution are carried out by smart contracts.

A more than good thing about this is , that an IDO provides immediate liquidity, meaning tokens are immediately tradable on the DEX once the funding is complete, as liquidity pools are established at the time of launch. This is definitely a more decentralized way to do business.

Meme Coin Launchpads

While the above three launchpads are designed for the more serious players, a new type of launchpad for the average retail investor, a.k.a. 'trench warrior,' has surfaced — the meme coin launchpads. These platforms are primarily for users looking to launch meme coins.

There is no coding required, no high-quality start-up capital to pay a launchpad, and no complex launch process like KYC and vesting, just an instant launch from anybody that has five minutes of spare time.

Popular Launchpads

The number of crypto launchpads is too damn high, with a lot of scammers left and right. So, because we are discussing the concept and phenomenon of launchpads, we touch upon the most popular ones lightly (although these are not by any chance endorsements whatsoever).

Binance Launchpad

As the name suggests, the launchpad that is hosted by Binance, one of the most famous exchanges, where token sales operate on a subscription-based model and where anyone that wants to participate must follow the rules during the designated subscription period, which is in most cases seven days.

We know, when we look at the numbers, that since its launch, it has helped to raise over $200 million for over 107 crypto-startup projects. Quite impressive!

Pump.fun

This notorious meme coin-based launchpad saw some high volume this cycle because it offered a new way of launching tokens.

Pump.fun offers an easy-to-use meme coin launchpad built on Solana where anyone can create and distribute their own tokens.

To create one, you just have to log in using an email or social media account and connect your crypto wallet. Then, create a token and wait for funding to come to you. How far we've come from VCs to as easy as pushing some buttons to create a real memecoin.

This notorious meme coin-based launchpad saw some high volume this cycle, because it offered a new way of launching tokens.

Since its inception in January 2024, Pump.fun has facilitated the creation of over 10 million tokens and has generated over $500 million in revenue. Also not bad…

LaunchLab

This is another meme coin-based launchpad. Barely a month after being dropped by Pump.fun, Raydium hit back with its own launchpad, LaunchLab (also built on the Solana) that shares some similar features with Pump.fun, such as token creation, bonding curves, and graduation of coins.

For instance, through this, they have partnered with BONK to create another memecoin-based launchpad known as LetsBonk.fun, which can also be accessed through LaunchLab.

SunPump

Finally, while Solana has dominated the meme coin launchpad arena, the Tron network has also rolled out a version of its own known as SunPump. The key difference is that SunPump, coming from the infamous Justin Sun, allows you to also launch your token through the AI agent Agent SunGenX.

Launchpads Finding Their Way to Bitcoin?

With everything we know and love from other chains such as Ethereum and Solana coming to Bitcoin, it was also a matter of time before the launchpads found their way to Bitcoin as well.

One example of an already established launchpad that runs on Stacks is Alex Lab (this is not an endorsement), with many that will follow when DeFi on Bitcoin becomes a thing, which will be bound to happen if technology is on point.

Now you may ask: Why do we need launchpads on Bitcoin as we can already create and customize our own tokens directly on-chain, with the recent updates of Runes and Ordinals...

Well, it's because in the future we will probably combine both. The latest Bitcoin experimentations with fungible (Runes) and non-fungible (BRC-20) tokens minted on Bitcoin can be transferred back and forth, and these launchpads can see greater interoperability and a better user experience.

It is Bitfinity that also supports the inclusion of protocols that want to create pools and staking opportunities with direct integration on Bitcoin, tapping into the biggest liquidity pool of them all.

CAVEATs of Crypto Launchpads

While launchpads have many security measures such as vesting that can protect against immediate sell-offs, they have their drawbacks. If a project's demand decreases but the emission of new tokens continues, it can lead to inflation, reducing the token's value.

Also, note that you have to be careful as most tokens here lack utility and are going to be subject to enormous volatility (to the downside).

These launchpads are rapidly changing, with those coming to Bitcoin or providing a new feature making developers and enthusiasts interested. As these platforms evolve, we see a mix of new forms everywhere, but we have to be careful nonetheless...

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Where Do Bitcoin and Crypto Launchpads Intersect?

What Are Launchpads?