Three Launchpad Prerequisites For Participating in a Presale
Presales grant investors the chance to get in on the ground-floor of a promising project: think being able to invest in Google in the mid-90s or Twitter ten years later. But presales are no picnic: VCs and whales get the five-star treatment while retail investors are often left to squabble over slim pickings. Which is why selecting the right launchpad is so important.
It’s not just a question of being able to bag tokens before they hit centralized exchanges. It’s about avoiding scams, rugs, and insider games. To win at presales, the launchpad needs to be fair and transparent, designed to empower the community rather than inflate the ego (and wallet balance) of billionaire investors.
The key, then, is knowing what to look for in an IDO platform. After all, a good launchpad doesn’t just host token sales; it runs a fine-tooth comb over the projects it represents to protect users from being fleeced; it endeavors to reflect the core tenets of Web3, like open access and decentralization.
With this in mind, here are three must-have ingredients of any presale platform worth its salt.
Refundable Model: A Safety Net for Bold Bets
In a just world, every presale model would permit a refundable grace period to deter scams and offer a shield against dud tokens. Launchpads offering such a feature are thin on the ground, though. Those that do allow investors to opt out within a stipulated time frame, post-IDO, grant them the peace of mind to make bigger initial bets.
TrustPad was the first launchpad to offer post-IDO refunds in 2021, and though the concept hasn’t quite caught on, platforms that process refunds are like lifeboats for retail users navigating the market’s ever-choppy waters. Just make sure you know exactly when the refund window slams shut!
Project Curation: Quality Over Quantity
Launchpads that vet projects are the antithesis of the spray-and-pray approach of their scam-rife counterparts. Instead of flooding the platform with all kinds of projects – some good, some (most) bad – quality launchpads curate them based on metrics like utility, team credibility, and long-term vision, acting as a critical signal in the noise.
The truth is, most projects – like most businesses – fail. While that doesn’t mean you can’t turn a profit investing in them short-term, low-tier launchpads disproportionately host projects that implode virtually overnight. Vetting and handpicking those that come through the doors – before they get a chance to burn investors – is a no-brainer, and often the difference between backing a winner and funding a flop.
And there’s another point to consider: good curation strengthens the overall Web3 ecosystem by driving adoption and value rather than pure speculation.
No Staking Requirements: Access for All
Subscription models that demand investors stake launchpad tokens to get a presale allocation have become an industry standard – but that doesn’t mean they’re just. On the contrary, they turn launchpads into pay-to-play platforms, walled gardens that either price retail investors out or saddle them with volatile tokens that nosedive pre-unstaking.
As with refundable models, look hard enough and you’ll find alternatives to the stake-to-invest model that has become so prevalent.
The Presale Gold Standard
Wouldn’t it be great if a launchpad achieved all three prerequisites? Luckily, there is one such destination: Coin Terminal.
Launched in 2023, this next-gen IDO platform favors a no-staking, no-token model to put curated projects in front of the widest possible audience. An audience that in less than two years has numbered 521,000 and collectively contributed to over 70 oversubscribed rounds, raising $75 million.
Presale participants can join a refundable IDO without posting any collateral and even opt-in to a sale on a Buy Now, Pay Later basis. Projects aren’t exactly fly-by-night either: Coin Terminal has offered opportunities to buy in presales alongside the likes of Binance Labs, Samsung NEXT, and Arthur Hayes, hosting projects operating in the GameFi, DeFi, and AiFi segments.
As far as vetting is concerned, Coin Terminal considers the project’s narrative, marketing and distribution resources, prospects for community growth, and potential secondary liquidity. Needless to say, not every project is a guaranteed winner, but by conducting rigorous due diligence, the launchpad gives investors a measure of quiet confidence.
No More Yacht Parties
For too long, presales have functioned as exclusive yacht parties thrown for billionaire VCs and angel investors. Launchpads with refundable models, curated projects, and open access promise to buck the trend, putting community, rather than cronies, first.
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