Re-DeFining finance raises: Launchpads!
Take it back to the roots
The history of investing spans back to around 1700 BC, where The Code of Hammurabi outlined a legal framework for investment by establishing a means for the pledge of collateral.
It did this by codifying a debtor and creditor rights with regard to pledged land. The world’s first stock exchange was established in Amsterdam by the Dutch East India Company in 1602.
Wall Street took over the baton in the early 1900s, and venture capital was a ‘privilege’ before World War II that was available primarily to wealthy individuals and families – JP Morgan, Vanderbilts, Rockefeller just to name a few.
The explosion of Silicon Valley tech companies took us to the digital era; reshaping the way we live, communicate and invest.
Keeping it crypto
Crowdfunding as a concept has a long history. The game changed when it entered mainstream use via the internet in the late 90s and provided the foundation for platforms like IndieGoGo, KickStarter and GoFundMe.
However, the real revolution started when the first token sale (ICO) was held by Mastercoin in July 2013 followed by the Ethereum token sale in 2014. Fast forward to today, and now anyone can actually become a VC and gain access to the early stage start-ups with the introduction of the crypto launchpad model.
Launchpad benefits the project by allowing them to enter production quicker, as well as enabling anybody to gain early access to token launches without the need for large sums of capital.
In this sometimes chaotic world of crypto, the key seems to be to consolidate and refine good quality projects by vetting them, helping to build community, and create a network effect. The launchpad model has gained momentum especially in the DeFi space and there are a few launchpads certainly worth mentioning.
Started as a platform to prevent immediate sell-offs and rug-pulls right after token sale events, TrustSwap used innovative methods like team token locks. Tokens would be locked for a set period, or only released after reaching a set milestone.
This way, if a project fails to meet its goals, investors won’t lose out on their money. Today TrustSwap has grown into a very successful launchpad, where holders of the SWAP token can gain early access to token launches by staking a minimum of 3,000 SWAP.
Fundraising for early crypto projects in a decentralised fashion gained traction with Polkastarter jumping to the game. Polkastarter has been one of the hottest trends and one of the most successful launchpads in recent few months
Launchpad hosted almost thirty project launches now and the list is just starting. Holders of 3,000 POLS tokens or more receive an allocation for early access to token launches and auctions. However, Polkastarter also offers public pools for non-POLS holders to participate in.
The token price and amount of tokens allocated can vary between POLS pools and non-POLS pools, and differ between projects. Polkastarter had the most success on return for investors. Many token sales have been oversubscribed and some of them sold out in less than 10 seconds.
New CrowdFund Kids on The Block
The evolution of raising funds is moving so fast that it evolves even as you read this article. Just a few days ago CyberFi introduced something unique to the market. A full suite Decentralized Cross-Chain Crowdfunding Launchpad & Stakepad built for the evolution of Defi.
The platform is called ‘Samurai’. Working in parallel with the CyberFi Automation Platform, Samurai is a separate platform working in synergy with CyberFi.
Samurai aims to provide Layer 2 & cross-chain integrations which allow for a seamless user experience and handling the next generation of start-ups with the best UI.
Envision a platform that requires little-to-no technical knowledge, and is as simple as connecting a wallet and clicking a few buttons. Building out the platform with the everyday user in mind, not a team of developers. More information in their Medium handle.
Read More Crypto AM shines its Spotlight on CyberFi
Crypto launchpads democratise access to cryptocurrency investments by allowing early access to a great number of people. There is an obvious demand for this market from investors, and room for this area of the industry to grow.
Innovative solutions are reshaping blockchain as we speak. Raising funds and investing has never been so accessible to everyone, and launchpads are certainly setting the trend.
DeFi Dawg is an industry insider who works closely with a number of projects in the DeFi space and is a proponent of innovation working closely with private and public sectors advocating digital asset space.
Please do your own research and note that nothing in this article should be taken as investment advice.