Technical Definition

Launchpad

A platform that hosts new token sales and distributes allocations to participants.

By Crypto University Editorial
BlockchainTransactionWallet

✦ Key Insight

A launchpad listing is not an endorsement. The level of vetting differs from platform to platform, and on permissionless launchpads there may be none at all.

✕ Common Misconceptions

Assuming an allocation is automatically profitable. Many launches trade below sale price. Check the vesting terms attached to your allocation before committing.

Detailed Explanation

Launchpads sit between projects and buyers. Exchange launchpads usually require holding the exchange's token and passing verification. Decentralised launchpads are permissionless and vary enormously in quality of screening.

In Practice

“A trader stakes an exchange token for a week to qualify for a small allocation in an upcoming sale, then decides whether to hold or sell into the listing.”

Dig Deeper

Wallet

Software or hardware that stores your private keys and lets you sign transactions.

Token

An asset created by a smart contract on an existing blockchain rather than being that blockchain's native currency.

Blockchain

A shared, append-only record of transactions maintained by many independent computers at once.

Transaction

A blockchain transaction is a signed or authorized instruction that changes blockchain state or transfers value when accepted by the network.